China's Sailun Produces Egypt's First Car Tire with $804 Million Investment
Egypt's Suez Canal Economic Zone announced the start of trial production of the country's first car tire at the Sailun Group factory in Sokhna, backed by $804 million in investments. The plant spans 400,000 square meters and aims to create over 3,000 direct jobs, with a target opening in early 2027. The project seeks to localize tire manufacturing, cut import reliance, and boost Egyptian exports.
The General Authority for the Suez Canal Economic Zone has announced the start of trial production of Egypt's first car tire at the Sailun Group factory in the Integrated Sokhna Zone, with total investments reaching $804 million. The move aims to localize tire manufacturing and boost Egypt's automotive production capabilities. Production has officially begun.
Inside the Sailun Tire Plant in Sokhna
The factory spans 400,000 square meters within the TEDA Egypt industrial developer zone, with a target opening and full commercial operation in early 2027. The massive project is set to create more than 3,000 direct jobs, relying on advanced smart manufacturing technologies to boost production efficiency and improve tire quality. Numbers that speak for themselves.
The project aims to support feeder industries for the automotive sector and reduce dependence on imported tires, while also boosting opportunities to export Egyptian production to regional and international markets. Localizing technology is the bigger goal here.
Suez Canal Economic Zone's Statement on Industrial Localization
Mustafa Shekhoun, head of the General Authority for the Suez Canal Economic Zone, confirmed that producing the first car tire inside the factory represents an important step toward transferring and localizing tire manufacturing technology in Egypt. He added that the project supports building an integrated value chain for the automotive and vehicle industry across all types, enhances local content, meets Egyptian market needs, and reduces the import bill for automotive supplies and spare parts. The message is clear.
Shekhoun noted that the authority aims to attract more industrial investments based on advanced technology by providing infrastructure, utilities, and investment incentives, alongside developing services for investors to enhance the competitiveness of Egyptian industry and open new markets for exports. The investment climate is improving.
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