Sailun Expands Plant Under Construction in Egypt

Sailun announced that as part of its strategy to increase production outside of China, it will invest an additional $285 million to expand its currently under-construction plant in Egypt, which will increase its capacity from 3 million to 9 million passenger and from 600,000 to 1.65 million truck tires per year.

The new project will be implemented by Sailun's subsidiary, Shams El Sherouk Tyre, and is expected to be completed within 18 months. The facility will be located in the Suez Canal Economic Zone.

Construction of the tire plant in Egypt began in September last year, and Sailun notes that the decision to invest more is due to growing demand in the international market, as well as the need for further globalization of the business. The tires produced on the new lines are planned to be sold in Egypt and neighboring countries.

The company adds that the automotive industry continues to develop in Egypt, creating opportunities for increasing demand for tires, and besides, the country has a favorable geographical location "between Asia, Africa, and Europe", and the proximity of the plant to the Suez Canal provides additional logistical advantages, allowing for reduced expenses and increased efficiency of supply chains.

The plant will join Sailun's production network, which also includes sites in China, Vietnam, Mexico, and Indonesia.

"The investment will open up new opportunities for us to meet the constantly growing demand in foreign markets," Sailun says, adding that the project still needs to be approved by Chinese authorities.

Earlier it was reported that a total of $1 billion is planned to be invested in the Egyptian plant, and its capacity will exceed 10 million tires per year.