Egypt signs contract to establish Sailun tire factory

Cairo – Sailun Group on 13 Aug signed a contract with the Egyptian government to to establish a new tire manufacturing plant in the Suez Canal economic zone (SCZone).

Scheduled for completion in 2026, phase I of the plant will produce 3 million passenger car tires and 600,000 truck and bus tires a year, according to an Egyptian government announcement.

Once fully operational, it added, the plant’s total production capacity will exceed 10 million tires annually – to meet both domestic-market and export demand.

The project spans an area of 350,000 square meters, with total investments estimated at around EGP50 billion (€885 million) and will be implemented over three years.

The project will be built over three phases within the TEDA Egypt industrial zone in Ain Sokhna, a fully integrated area under the SCZone.

Egypt’s prime minister (PM) Moustafa Madbouli witnessed the signing with deputy PM for industrial development and minister of industry and transport Kamel el-Wazir and chairman of the the SCZone authority Walid Gamal El Din also present.

At the event, he PM emphasised Egypt’s “ongoing commitment to its ambitious strategy to localise the automotive industry and its associated value chains.”

He also highlighted the role of national infrastructure projects in enhancing SCZone’s ability to attract foreign direct investment and connect industrial zones with global markets.

For his part, SCZone chairman Gamal El Din described the tire manufacturing project as “a cornerstone in the localization of the automotive industry - a key pillar of the SCZone’s strategic vision.

“The SCZone is working to establish integrated industrial clusters for vehicle manufacturing and related supply chains, in line with the national strategy for automotive industry localization, launched from the East Port Said zone.”