Nearly $300 million tire project established in TEDA Cooperation Zone, adding a new flagship to China-Egypt economic and trade cooperation

Recently, witnessed by Egyptian Prime Minister Mostafa Madbouly, a major cooperation between China and Egypt was finalized. Xie Xiaohong, President of Sailun Group, and Cao Hui, Executive Director of Egypt Teda Free Trade Zone Development Company, signed an agreement with a total investment of nearly 300 million USD. According to the agreement, Sailun Group will build a modern large-scale tire manufacturing base in the China-Egypt Teda Suez Economic and Trade Cooperation Zone (referred to as "Teda Cooperation Zone"). Egyptian Deputy Prime Minister and Minister of Industry and Transportation Kamal Wazir, Teda Zone Chairman Walid Gamaleddin, and other senior officials attended the ceremony, highlighting the Egyptian side's high emphasis on the project.

The project plans an annual production of 3 million semi-steel radial tires and 600,000 all-steel radial tires, with a construction period of 18 months and a total investment of 291.48 million USD. Once completed, the project will not only meet the growing demand in overseas markets but also enhance Sailun Group's ability to cope with international trade barriers through localized production, which is significant for strengthening its global competitiveness and expanding international markets.

A Key Move for Egypt's Industrial Localization

Prime Minister Madbouly emphasized at the signing ceremony that this project is a crucial step in Egypt's strategy to accelerate the localization of the automotive industry, strongly demonstrating the core value of the public-private partnership model in promoting regional industrial upgrading. He pointed out that Egypt has continuously invested in infrastructure such as roads, tunnels, and ports in recent years, significantly enhancing the Suez Canal Economic Zone's (SCZONE) ability to attract foreign investment and laying an efficient channel connecting local manufacturing centers with global markets.

SCZONE Chairman Gamaleddin further explained its strategic positioning: tire manufacturing is one of the core pillars of the economic zone's automotive industry localization layout. The project deeply aligns with Egypt's national automotive manufacturing strategy launched from East Port Said, aiming to build a complete automotive industry cluster with regional influence. Gamaleddin revealed that SCZONE's recent active promotion activities in China, including in-depth contacts with leading companies in the electric vehicle and battery sectors, laid an important foundation for this cooperation.

Sailun's Global Footprint Expands in the Middle East and Africa

Founded in 2002, Sailun Tire has a strong foundation in R&D and manufacturing. As the first private tire company listed on China's A-share market and the first tire company to establish overseas factories, Sailun Tire has production bases in domestic cities such as Qingdao, Dongying, Shenyang, and Weifang, as well as in countries including Vietnam, Cambodia, Mexico, and Indonesia.

Sailun Tire has four major R&D centers located in Qingdao, Toronto (Canada), Frankfurt (Germany), and Ho Chi Minh City (Vietnam), and has established localized technical research departments at its factories worldwide, building a global technology R&D and testing system. Its products are sold to more than 180 countries and regions across North America, Europe, Asia, and Africa.

To date, the company has planned an annual production capacity of 27.65 million all-steel radial tires, 106 million semi-steel radial tires, and 447,000 tons of off-road tires.

This move into Egypt marks Sailun's establishment of a core manufacturing hub in the Middle East and Africa region. The project will fully leverage SCZONE's unique geographical location and favorable investment policies to efficiently serve Egypt and its surrounding markets.

Teda Supports the Deepening of China-Egypt Economic and Trade Cooperation

Sailun Group specifically pointed out that choosing the Teda Cooperation Zone as a strategic hub is due to its mature industrial support and efficient service system. The cooperation zone not only has complete infrastructure and industrial chain foundations but, more importantly, offers a convenient and efficient investment service system that helps enterprises quickly settle and develop with peace of mind.

As a model project of China-Egypt cooperation, after more than ten years of development, the Teda Cooperation Zone has built a modern industrial area, bonded logistics center, and comprehensive living facilities. Its unique full-cycle industrial chain service model provides enterprises with comprehensive services from registration and approval to employee life, becoming the preferred platform for Chinese enterprises entering the Middle East and African markets. Successfully hosting the Sailun Egypt project is the latest example of its role in promoting the deep development of China-Egypt economic and trade cooperation and helping Chinese enterprises successfully "go global."

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