An additional $285 million in investment! Sailun Tires will build its largest overseas production base in the TEDA Cooperation Zone.
Release time:
2026-05-14 14:48
Source: Silk Road Journey Corporate Overseas Expansion Official Account
Recently, Sailun Group announced that it will inject an additional US$285 million to build a “7.05-million‑tire‑per‑year radial tire expansion project” within the Sino‑Egyptian TEDA Suez Economic and Trade Cooperation Zone (TEDA Cooperation Zone). Upon completion of the expansion, the Egyptian facility’s total annual production capacity will reach 10.65 million tires, making it Sailun’s largest single overseas manufacturing base.
This capital increase by Sailun Group marks a strategic shift for its Egyptian base—from “pilot‑stage exploration” to “large‑scale investment.” The rationale behind Sailun’s heavy commitment to the TEDA Industrial Cooperation Zone is clear: exports from Egypt to the EU enjoy zero tariffs, while shipments to the U.S. benefit from reduced tariff burdens; it enables the company to capture the African market and serve the region’s 250 million vehicles and mining‑logistics needs; it significantly cuts costs, with labor expenses in Egypt roughly 40%–50% of those along China’s coastal regions; and, leveraging the TEDA Zone’s well‑developed industrial ecosystem, it substantially lowers operational expenses.
From groundbreaking to the capital increase, just half a year has passed.
For the TEDA Cooperation Zone, this capital increase carries profound significance.
By the end of 2025, the TEDA Cooperation Zone will have attracted more than 200 enterprises, with total investment reaching approximately US$3.8 billion. It has drawn leading companies such as China Jushi, Xi’an Electric International, and Midea, and has established a “1+8” industrial ecosystem. The significant expansion of Sailun’s production capacity will further enrich the zone’s industrial landscape, strengthen its cluster effect, and powerfully draw greater attention from global tire and automotive‑parts manufacturers to the TEDA Cooperation Zone.
Moreover, Sailun’s continued investment underscores the unique value of the TEDA Cooperation Zone as a one-stop, comprehensive service platform. Through in-depth localization, well‑established industrial support infrastructure, and robust policy backing, the zone is steadily lowering the barriers for Chinese enterprises expanding overseas, fostering industrial synergy and forging a new pathway for Chinese companies to go global—one centered on “services plus ecosystem.”
With the full implementation of China’s zero-tariff policy for its 52 African diplomatic partners, the Teda Cooperation Zone will further leverage its locational advantages and policy benefits, attracting more Chinese manufacturing enterprises to establish and expand their operations in Ethiopia. This will help propel the zone’s transformation from a roughly 10-square-kilometer industrial base into a strategic hub for high-quality China–Africa economic and trade cooperation.
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2026-05-14
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