Sailun eyes tire manufacturing plant in South Africa

Pretoria – Sailun Group is studying the establishment of a ‘tire manufacturing hub’ in the Nelson Mandela Bay Municipality of South Africa, according to a 30 July official release by the municipality. 

To be located in the Coega Special Economic Zone (SEZ) in the south of the country, the project is estimated to cost ZAR2billion (€108 million) and will include tire production and recycling facilities, said local mayor Babalwa Lobishe.

The proposed project will include a 20-hectare manufacturing facility, an estimated 100,000 sq.m. production footprint and embedded renewable energy generation and battery storage systems.

During its initial phase, the facility is expected to manufacture one million passenger car tires and 300,000 truck and bus tires per year, said the release without providing a timeline.

A future expansion, it added, is expected to "increase production significantly in line with market demand."

The investment is projected to create 200 direct jobs during the initial operational phase, growing to 800 permanent direct jobs.

Sailun, said the release, is currently conducting feasibility studies for the establishment of the facility, which will supply tires to the Southern African Customs Union (SACU) and the broader sub-Saharan African market.

The company is considering the Coega SEZ after delays affected its originally proposed location elsewhere in South Africa, it added. 

The announcement cited the region’s “strategic location, world-class logistics infrastructure, industrial land availability, renewable energy opportunities and direct access to the Port of Ngqura” as key reasons for the proposed investment.

Sailun is currently present in Africa through its production facilities in Egypt. Earlier this year, the group announced a major expansion of its Egyptian operations, with an investment of nearly €1 billion (ERJ report).