7.8 billion! Three major investments! Sailun’s world’s largest overseas tire base is rapidly taking shape in the TEDA Cooperation Zone.

Sources: Tire Business, China Rubber Magazine, China Shandong Net

On June 17, Sailun Group Co., Ltd. announced its plan to invest US$1.141 billion (approximately RMB 7.807 billion) in the Egypt–Teda Suez Economic and Trade Cooperation Zone to build the “Egypt Tire Capacity Expansion Project.” This marks the third time since August 2025 that Sailun Group has increased its investment in the Teda Cooperation Zone, bringing the total cumulative investment to over US$1.7 billion. Upon completion, the Teda Cooperation Zone will become Sailun Group’s largest overseas manufacturing base in terms of production capacity.

Three major holdings—combining both “speed” and “scale”

Sailun Group’s presence in the TEDA Cooperation Zone is following a clear trajectory of accelerated growth.

In August 2025, witnessed by Egyptian Prime Minister Mostafa Madbouly, Sailun Group signed an agreement with the Teda Egypt Development Company to invest approximately US$291 million in a project to produce 3.6 million radial tires annually, marking Sailun’s first large-scale tire manufacturing base in the Middle East and Africa. From contract signing to groundbreaking, the entire process took less than one month, setting a new benchmark for “Teda Speed.”

In April 2026, Sailun made an additional investment of US$285 million to build an expansion project with an annual production capacity of 7.05 million radial tires.

Just two months later, Sailun made its third major investment—a new round of expansion totaling US$1.141 billion—aimed at producing 27 million semi‑steel radial tires, 1.65 million all‑steel radial tires, and 20,000 tons of off‑road tires annually. Once all three phases of the project are completed, Sailun’s Egyptian facility will boast an impressive annual capacity of 36 million semi‑steel radial tires, 3.3 million all‑steel radial tires, and 20,000 tons of off‑road tires. As a result, the TEDA Industrial Cooperation Zone has become the largest and most strategically significant overseas manufacturing base within Sailun’s global production network.

Why TEDA? Three Core Advantages Secure Its Position as a “Global Hub”

Sailun’s continued investment underscores the core competitiveness of the TEDA Cooperation Zone as a strategic platform for Chinese enterprises’ “going global” initiatives.

Geographical advantages take center stage. The TEDA Cooperation Zone is located within the Suez Canal Economic Zone, strategically positioned along a vital shipping route that handles roughly 12% of global maritime trade. From this hub, Sailun’s products can swiftly reach major ports in Southern Europe, the Middle East, and East Africa. As a member of both the Arab Free Trade Area and the African Continental Free Trade Area, Egypt—coupled with the tariff preferences under the EU–Mediterranean Partnership Agreement—has made “Made in Egypt” a key to unlocking the European, Middle Eastern, and African markets.

The industrial ecosystem is steadily maturing. After years of development, the TEDA Cooperation Zone has attracted more than 200 enterprises, establishing a “1+8” industrial structure and initially forging an industrial landscape characterized by leading‑firm guidance, supply‑chain integration, and cluster‑based growth. Projects such as Langma Tire, signed in 2025 with Sailun, are generating agglomeration effects, accelerating the formation of a robust tire and automotive‑parts industry cluster. A well‑developed industrial‑chain support network and a one‑stop service system have significantly reduced the administrative costs of cross‑border operations.

Policy dividends continue to be unleashed. With China’s full implementation of zero tariffs on imports from Egypt and 52 other African countries that have diplomatic relations with China, effective May 2026, the Teda Cooperation Zone is seeing its locational and policy advantages further reinforced. In its announcement, Sailun explicitly stated that investing in and building a manufacturing facility in Egypt “will help circumvent existing and potential international trade barriers” and enable synergies with its existing overseas production bases.

For the TEDA Cooperation Zone, Sailun’s three consecutive, cumulative investments exceeding US$1.7 billion represent not only a landmark achievement in attracting investment but also signify that the zone has evolved from a strategic foothold for Chinese enterprises’ overseas expansion into a pivotal node within the global supply chain. Under the framework of deep alignment between the Belt and Road Initiative and Egypt’s Vision 2030, the TEDA Cooperation Zone is emerging as a central platform driving China–Egypt industrial cooperation from quantitative accumulation toward qualitative leapfrogging.

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