Officials and company representatives attend the groundbreaking for Sailun’s tyre factory in Egypt’s Suez Canal Economic Zone on September 10, 2025. FILE PHOTO.
By Ahmed Hassan
Linglong, Sailun and ZC Rubber lead expansion as materials and equipment suppliers deepen local production links
Egypt is attracting a growing wave of Chinese investment in tyre manufacturing and supporting industries, as producers seek to expand exports to Europe, Africa and the Middle East while diversifying their international supply chains.
Recent announcements span passenger-car and commercial-vehicle tyres, carbon black, silica and manufacturing equipment, supporting Egypt’s ambition to build an integrated automotive supply base rather than a collection of standalone factories.
Among the latest developments, Linglong Tyre announced plans in September for a $270m Egyptian production facility with annual capacity of six million passenger-car radial tyres.
Construction is expected to take two years, with financing drawn mainly from company resources and bank loans, according to Yicai’s September 24 report on the company announcement. The project remains subject to regulatory approvals in China and Egypt.
Linglong said the investment would strengthen regional deliveries and reduce exposure to trade restrictions, positioning Egypt as a manufacturing and distribution base serving several markets.
The announcement followed a September 3 memorandum of understanding between Egypt’s Ministry of Industry and Linglong covering a broader integrated industrial complex with expected investment of approximately $2bn.
Industry Minister Khaled Hashem said the proposed complex would produce tyres for passenger cars, buses and equipment, alongside conveyor belts.
It would also incorporate supporting industries, including carbon black and steel wire, helping increase domestic value added and build a more complete production chain.
Hashem said the broader proposal could create more than 5,000 jobs, support technology transfer and supply both the Egyptian market and export destinations in Europe and the United States.
The relationship between this framework agreement and the subsequent $270m factory announcement requires clarification before their investment values can be combined.
Export-oriented expansion
Zhongce Rubber Group, known as ZC Rubber, is also studying a $500m tyre manufacturing complex in the Sokhna Industrial Zone.
A letter of intent announced on September 2 envisages a three-phase project covering approximately 600,000 square metres, with around 95% of production earmarked for export.
ZC Rubber Chairperson and General Manager Shen Jinrong said the proposed investment would use Sokhna’s logistics infrastructure to support expansion into the Middle East, Africa and Europe.
Minister of Investment and Foreign Trade Mohamed Farid said Egypt’s location, ports, transport networks and industrial infrastructure gave it the potential to become a regional tyre production and export hub. He also stressed the importance of transferring manufacturing expertise and developing Egyptian workers’ technical skills.
The project remains at the assessment stage, with further studies, site selection and procedures required before implementation.
Sailun, meanwhile, disclosed a proposed $1.14bn capacity expansion in June, according to European Rubber Journal’s account of its June 17 stock-exchange filing.
The proposal envisages annual capacity of 27 million passenger-car radial tyres, 1.65 million truck and bus radial tyres and 20,000 tonnes of off-the-road tyres. Its stated objectives include improving global customer service and strengthening international competitiveness. Approvals were still required when the plan was announced.
At the September 2025 groundbreaking for Sailun’s initial Egyptian plant, company President Xie Xiaohong said the facility would improve supply-chain efficiency and responsiveness to customers in Africa, the Middle East and Europe.
Supporting industries follow
The investment pipeline extends beyond finished tyres.
Shandong Link Science and Technology, also known as Lianke Technology, proposed a carbon black and silica facility in Sokhna in September.
The project would produce 100,000 tonnes annually of each material, with construction expected to take approximately 18 months, according to European Rubber Journal. Both materials are important inputs in tyre manufacturing.
Himile Group announced a first-phase investment of $100m in February for a factory producing tyre moulds and industrial components. The proposed facility would occupy approximately 100,000 square metres and serve domestic and international customers.
Following talks with Farid, Himile Chief Executive Arian Kai said the company aimed to develop an Egyptian industrial base serving regional and global markets.
China National Tire & Rubber Corporation has separately outlined a $550m expansion through Prometeon Tyre Egypt in Alexandria. The plans include a new facility and upgrades to existing production lines, adding annual capacity of 1.5 million tyres and an estimated 1,600 direct jobs.
During discussions reported in June, Hashem pledged to help resolve investment obstacles.
“The ministry is a genuine partner in supporting the company’s expansion strategy,” he said.
The expansion comes amid tougher trade conditions for Chinese exporters. The European Commission announced definitive anti-dumping duties on Chinese passenger-car and light-lorry tyres in July, adding an incentive for manufacturers to diversify production geographically.
