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One billion dollar Sailun tire factory breaks ground in Sokhna

Businessmen Team news 10 September 2025 03:55 PM
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One billion dollar Sailun tire factory breaks ground in Sokhna

The head of the Suez Canal Economic Zone (SCZONE), Walid Gamal El-Din, laid the cornerstone Wednesday for a new car tire factory by China's Sailun Group. The ceremony took place in the TEDA-Egypt industrial developer zone in Sokhna.

The event was attended by Suez Governor Tariq Hamed Al-Shazly, head of the Arab Organization for Industrialization, Major General Mokhtar Abdel Latif, Minister Plenipotentiary at the Chinese Embassy in Egypt, Zhao Liucheng, and Sailun Group Chairman Shi Shaohong, as well as leaders from SCZONE, the industrial developer, and representatives from the Chinese side.

The factory, which is considered one of the largest Chinese industrial investments in Egypt, will be built on 350,000 square meters with a total investment of $1 billion (approximately 48 billion Egyptian pounds). The project will be implemented in three phases over three years.

The first phase is expected to be operational in 2026 and will have an annual production capacity of 3 million passenger car tires and 600,000 truck and bus tires, creating 1,500 jobs. Once all phases are complete, the factory's total annual production capacity is planned to exceed 10 million tires, which will meet local market needs and open up opportunities for export to regional and international markets.

Gamal El-Din stated that this massive project is a key part of SCZONE's strategy to localize the automotive industry and its value chains, in line with the Egyptian government's national strategy for the automotive sector. He emphasized that SCZONE is working to establish integrated industrial clusters to make the area a leading regional hub in this vital sector.

He added that the Sailun factory reflects these efforts and the growing confidence of international investors in the SCZONE's investment climate, strategic location, investment incentives, and integrated infrastructure with seaports. Gamal El-Din affirmed SCZONE's commitment to providing all necessary support to ensure the project is completed on schedule. He noted that the new factory will not only add value and create hundreds of direct and indirect jobs but also represent a qualitative leap in boosting Egypt's competitiveness in global automotive supply chains.

The Sailun Group is one of China's largest industrial companies specializing in vehicle tire manufacturing. It operates factories in China and Vietnam with a massive production capacity of over 26.6 million TBR tires, 88 million PCR tires, and 310,000 tons of OTR tires annually. The group has a sales and logistics network covering more than 180 countries and regions worldwide, making its planned factory in the SCZONE a central manufacturing base to meet growing demand in the local and regional markets.