Egypt has inked an agreement with China’s Sailun Group to construct an automotive tire manufacturing factory in the Suez Canal Economic Zone (SCEZ), involving total investments of $1 billion. This was revealed by a Cabinet statement. Furthermore, the construction of this tyre manufacturing facility facility is expected to span three years. Furthermore, it is expected to ultimately achieving an annual production target of 10 million tires. The first phase of the Sokhna Industrial Zone Tire Factory facility is set to be completed by 2026.
Egypt’s Suez Canal Economic Zone contains six ports and four industrial areas that are situated alongside or in proximity to this vital waterway. Additionally, the government has set special legal and tax advantages upon the area to capitalize on the international shipping traffic that passes through.
Also read: Egypt Finally Inks Agreement on its $1.7 Billion Red Sea Petrochemicals Project Near the Suez Canal
The Sailun Group Sokhna Industrial Zone Tire Factory Project Factsheet
Partnership: A contract between China’s Sailun Group and TEDA Egypt, a developer within the Suez Canal Economic Zone (SCZone).
Total investment: $1 billion
Location: China-Egypt Teda industrial zone, Sokhna Industrial Zone (within the SCZone)
Timeline and phased development:
- Project duration: The factory will be developed in three phases over a period of three years.
- First phase completion: scheduled for 2026.
- Full completion: Expected within three years of the start of the project.
Capacity:
Initial production (Phase 1):
- 3 million passenger car tires annually
- 600,000 truck and bus tires annually
Full Production (Upon full completion):
- Annual output will exceed 10 million tires.
Factory size: 350,000 square meters
The chairperson of the zone indicated in the previous year that many investments are being channelled toward infrastructure so as to attract potential investors.
China’s Investment in Egypt
China has been keen to increase its economic engagement in Egypt. It has ventured into key sectors like ports, green hydrogen, industrial projects, and space exploration.
Recent partnerships and collaborations between Egypt and China in this year cover a wide range of sectors. These underscore a deepening strategic relationship between the two countries.
China and Egypt to Strengthen Economic Ties
Additionally, both nations have committed to enhancing economic ties. These economic ties will be enhanced especially in areas like electric vehicles, electronics, artificial intelligence, water desalination, solar energy, and feeder industries.
Also read: Egypt Signs $658 Million Contracts for Abu Tartur Phosphoric Acid Complex Project
Also, significant investment promotion forum is also on the agenda to stimulate joint investments. Chinese investments are notably thriving within the China-Egypt TEDA Suez Economic and Trade Cooperation Zone. Furthermore, the China-Egypt TEDA Suez Economic and Trade Cooperation Zone is home to over 160 Chinese enterprises. Also, Egypt’s favorable strategic location and extensive trade agreements further position it as an optimal production and export hub for Chinese businesses.
