Chinese Tire Companies Invest $6 Billion in Egypt to Produce 27 Million Tires Annually

Chinese tire companies are ramping up investments in Egypt with a total of approximately 40 billion yuan (about $5.98 billion) announced since the start of this year. The numbers are staggering. This surge is driven by Egypt's strategic location linking Asia, Africa, and Europe, its proximity to regional markets, and advantages in infrastructure, industrial zones, and free trade agreements that provide access to multiple foreign markets.

Shandong Linglong Launches $270 Million Plant in Alexandria

On September 24, Shandong Linglong Tire Co. announced plans to invest $270 million in Alexandria to build a factory with an annual capacity of 6 million semi-steel radial tires. The move is part of a wave of new Chinese investments in Egypt's tire sector and its supply chains. Since the beginning of the year, at least six Chinese companies have announced new investments in the country. The market is shifting rapidly.

Sailun Raises Cumulative Investments to $1.7 Billion

Sailun Group stands out as a major investor. It has raised its cumulative investments in its Egyptian project to about $1.7 billion since the agreement was signed in August 2025. Production is expected to begin this year, with plans for annual capacities of 27 million semi-steel radial tires, 1.65 million all-steel radial tires, and 20,000 tons of off-road tires. The scale is unprecedented.

Investments Extend to Raw Materials

Investments aren't limited to finished tires; they extend to essential raw materials and components. In September, Shandong Link Science and Technology announced a 1 billion yuan investment to establish an integrated project in the Sokhna Industrial Zone within the Suez Canal Economic Zone, producing 100,000 tons of silica and 100,000 tons of carbon black annually. Meanwhile, Hemel Group plans to invest $100 million in the first phase of a project to manufacture tire molds and industrial components. Diversification strengthens local supply chains.

Egypt as a Regional Tire Manufacturing Hub

These investments reflect Egypt's transformation into a regional hub for tire manufacturing and its components, supported by its strategic location and free trade agreements. As these projects come online, local production capacity is expected to rise significantly, potentially reducing reliance on imports and opening doors for exports to regional markets. The final outcome will unfold in the coming years.