Sailun breaks ground on new tire plant in Egypt

Cairo – Sailun Group has broken ground on a new tire production factory in Suez Canal Econmic Zone SCZone), in northeastern Egypt.

The Chinese group initially disclosed plans to build the €890-million tire plant during a mid-August signing ceremony witnessed by Egyptian prime minister Mustafa Madbouli. (ERJ report)

On 10 Sept, the tire group broke ground on the first phase of the project, valued $291 million (€248 million), with a capacity to produce 3 million passenger car tires and 600,000 truck and bus tires per year.

Speaking during the event, group president Xie Xiaohong said the Egypt plant will “significantly enhance Sailun’s global supply chain efficiency and market responsiveness.”

The facility will, in particular, help the Chinese group better meet the demands of customers in Africa, the Middle East, and Europe.

According to Sailun, once the first phase is completed, it is expected to generate an annual revenue of $190 million, create 1,000 jobs, and “stimulate over $500 million in supporting upstream and downstream industries.”