Prime Minister Mostafa Madbouly witnessed on Wednesday morning August 13,2025 the signing ceremony of a contract to establish a new tire manufacturing plant by Chinese Sailun Group.
The event took place at the government headquarters in the New Administrative Capital, in the presence of Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel el-Wazir and Chairman of the General Authority for the Suez Canal Economic Zone (SCZone) Walid Gamal El Din.
The high-level industrial project will be built over three phases within the TEDA Egypt industrial zone in Ain Sokhna, a fully integrated area under the SCZone.
The project spans an area of 350,000 square meters, with total investments estimated at dlrs 1 billion (approximately EGP 50 billion) and will be implemented over three years.
The first phase of the plant will produce 3 million passenger car tires and 600,000 truck and bus tires.
It is scheduled for completion in 2026. Once fully operational, the plant’s total production capacity will exceed 10 million tires annually, with a dual objective of meeting local market demand and supporting exports.
The prime minister emphasized Egypt’s ongoing commitment to its ambitious strategy to localize the automotive industry and its associated value chains.
Madbouli praised the promotional efforts of the SCZone, which have successfully attracted investments in this vital sector, one of the government’s top priorities for deepening local manufacturing.
He also stressed the importance of sustained collaboration between the public and private sectors to establish Egypt as a regional leader in automotive manufacturing in a short timeframe.
The prime minister further highlighted the role of national infrastructure projects, including roads, tunnels and port development, in enhancing SCZone’s preparedness to attract foreign direct investment (FDI) and connect industrial zones with global markets.
The zone offers attractive investment incentives and adopts policies that foster a competitive, investor-friendly environment.
For his part, the SCZone’s chairman said, the tire manufacturing project represents 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, Gamal El Din said.
He added that the Authority’s recent promotional tour in China included field visits and high-level meetings with leading electric vehicle and battery manufacturers.
It also featured a roundtable with six of the largest Chinese auto parts and accessory producers.
These engagements were designed to attract investment, understand the latest automotive technologies, and assess the infrastructure and workforce needs of similar industrial projects, said the SCZone’s chairman.
