Sailun Plans $1.14bn Egypt Tyre Capacity Expansion

Sailun Group has announced a separate US$1.14 billion Egypt tyre capacity enhancement project, subject to shareholder and regulatory approval. The proposal would add 27 million semi-steel radial tyres, 1.65 million all-steel radial tyres and 20,000 tonnes of off-road tyre capacity a year, strengthening Egypt’s role in the manufacturer’s overseas production network.

A larger Egyptian manufacturing base

The latest plan is distinct from Sailun’s earlier Egypt investment, announced in April, which covered additional annual capacity for 6 million semi-steel passenger car radial tyres and 1.05 million all-steel truck and bus radial tyres. That earlier project was linked to Sailun’s Shams El Sherouk Tyre Co. subsidiary in the Suez Canal Economic Zone.

If approved, the new project would take Sailun’s total planned Egyptian annual capacity to 36 million semi-steel radial tyres, 3.3 million all-steel radial tyres and 20,000 tonnes of off-road tyres when combined with previously disclosed projects. The investment package is reported at US$1.141 billion, including construction costs, working capital and interest during construction.

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Why the scale matters

For the tyre trade, the project points to a deeper shift in global tyre manufacturing, as Chinese producers build larger overseas bases closer to export markets. Egypt offers access to Africa, the Middle East and Europe, while also giving manufacturers another route to manage tariff, logistics and supply-chain exposure.

Sailun said in its filing that the project is intended to “better match and meet” global customer needs and support its wider internationalisation plans. The company has also described its overseas footprint as a production matrix spanning China, Vietnam, Cambodia, Mexico, Indonesia and Egypt.

European supply relevance

The move also has a clear European trade angle. Tyre News recently reported on Sailun’s Tire Cologne message, where the company said its Egypt plant should allow several European freight hubs to be reached within five working days. That supply claim matters for wholesalers, retailers and fleets seeking consistent product availability without holding excessive stock.

The investment also follows wider European channel activity. Tyre News has reported on Sailun’s German supply partnership with Minrath Gruppe, covering replacement tyre and complete wheel activity across 14 dealership and service locations.

Capacity, risk and approval

The proposal remains subject to shareholder and regulatory approval, so it should be treated as planned capacity rather than confirmed production. However, the numbers show the scale of Sailun’s ambition in Egypt and its intent to build a more resilient manufacturing footprint outside China.

For UK and European buyers, the practical questions will be timing, product allocation, certification and delivered cost. If the project proceeds as planned, Egypt could become an increasingly important supply base for passenger, truck and OTR tyres serving nearby export markets.

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Tagged with: Sailun tyres, Egypt tyre plant, tyre manufacturing, PCR tyres, TBR tyres, OTR tyres, Suez Canal Economic Zone, tyre supply chain, Chinese tyre makers, overseas tyre capacity

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