Kuwait city: Egypt signed on Wednesday, a contract with China's Sailun Group to establish a tire manufacturing plant in the Sokhna Integrated Zone under the Suez Canal Economic Zone, with total investments estimated at around USD one billion.
According to Kuwait News Agency, the agreement was signed by CEO of Teda Egypt Tsao Khui, and Chairman of Sailun Tires Shi Xiaohong, in the presence of Prime Minister Dr. Mostafa Madbouly, Minister of Industry and Trade Kamel Al-Wazir, and Chairman of the Suez Canal Economic Zone Authority Walid Gamaleldien.
The planned factory, spanning approximately 350,000 square meters, is expected to be completed within three years, with its first phase targeting completion in 2026, with a production capacity of three million passenger car tires and 600,000 truck and bus tires.
Upon full completion of both phases, the total annual production is projected to exceed 10 million tires, noting that the project aims to meet domestic market demand as well as export markets.
Prime Minister Madbouly emphasized Egypt's ambitious strategy to localize the automotive industry and supply chains, praising the Suez Canal Economic Zone for attracting key investments, and stressing public-private cooperation to achieve regional leadership in automotive manufacturing. He also highlighted the role of national infrastructure projects, including roads, tunnels, and ports, in enhancing the zone's readiness for foreign direct investment and linking manufacturing, production, and logistics to global markets.