At an investment worth USD1 billion, the Sokhna Integrated Industrial Zone affiliated to the Suez Canal Economic Zone (SCZone) will be getting a factory for manufacturing car tyres.
On 10 September, the foundation stone for the project was laid in TEDA Egypt Industrial Developer, the Chinese-Egyptian industrial zone within the Suez Canal Economic Zone, developed under the Belt and Road Initiative. It hosts manufacturing and logistics industries that boost trade, investment, and job creation.
The project, which will be implemented in partnership with the Chinese Sailun Group, will stand over an area of 350,000 square metres. As one of the largest Chinese industrial investments in Egypt. It is expected to be implemented in three phases over three years. The first phase is scheduled to commence operation in 2026, with a production capacity of 3 million passenger car tyres and 600,000 truck and bus tyres; it should provide 1,500 job opportunities. The total production capacity of the entire factory is planned to exceed 10 million tyres annually, meeting local market needs and opening up broad prospects for export to regional and international markets.
Attending the laying of the foundation stone were Walied Gamal Eldien, Chairman of the General Authority for the Suez Canal Economic Zone; Major General Tarek Hamed El-Shazly, Governor of Suez; Major General Mokhtar Abdel-Latif, Chairman of the Arab Organisation for Industrialisation; Zhao Liuqing, Economic and Commercial Counselor of the Chinese Embassy in Egypt; Shi Shaohong, Chairman of the Sailun Group; as well as senior officials from SCZone, and representatives from the Chinese side.
“This huge project represents a fundamental pillar of SCZone’s strategy to localise the automotive industry and its associated value chains,” SCZone Chairman Mr Gamal-Eldien said, reminding of the Egyptian government’s National Strategy for Localising the Automotive Industry. He stressed that SCZone seeks to establish integrated industrial clusters that will make it a leading regional platform in this vital sector.
Mr Gamal-Eldien explained that SCZone is committed to providing support and all necessary facilities to ensure the rapid completion of the project according to the agreed-upon schedule. He pointed out that the new factory will not only increase the added value and create hundreds of direct and indirect job opportunities, it also represents a qualitative leap towards enhancing Egypt’s competitiveness in global supply chains related to the automotive industry.
Saliun Group is one of the largest Chinese industrial entities specialising in the manufacture of vehicle tyres. It owns factories in China and Vietnam with a massive production capacity of more than 26.6 million TBR tyres, 88 million PCR tyres, and 310,000 tons of OTR tyres annually. The group also has a sales and logistics network spanning more than 180 countries and regions worldwide, with its planned factory in SCZone becoming a central manufacturing base to meet growing demand in the local and regional markets.
Watani International
10 September 2025
