The 350,000 m2 project is expected to be completed in three years and will have a total annual production capacity of over 10 million tires. The first phase, scheduled for completion in 2026, will focus on producing 3 million passenger car tires and 600,000 truck and bus tires. The project is also expected to create approximately 1,500 jobs.

Sailun Group representatives at the groundbreaking ceremony. Photo: Sailun

Sailun Group representatives at the groundbreaking ceremony. Photo: Sailun

Of the $290 million investment for the steel belted truck tire plant with a designed capacity of 3.6 million tires annually, around $255 million is allocated for construction, $35 million for working capital, and $1 million for interest expenses during the implementation phase.

Once operational, the project is anticipated to generate an average annual revenue of $190 million, with a net profit of approximately $34.8 million and a payback period of over six years. Sailun stated that the Egypt project will better serve international demand by localizing production and providing closer access to new markets.

Egypt's strategic location, connecting Asia, Africa, and Europe via the Isthmus of Suez and the Suez Canal, makes it an ideal manufacturing hub. The country's maritime routes handle over 12% of global trade annually, making it a crucial transit point for goods and well-suited for industries requiring rapid distribution.

Meanwhile, the Egyptian automotive market is experiencing robust growth, with an 83% increase in the first half of the year, reaching over 90,000 vehicles, double the figure from 2024. Chinese car brands hold a 25.5% market share.

Sailun Group currently has a distribution network in over 180 countries and factories in China, Vietnam, Cambodia, and Thailand. The new plant in Egypt aims to increase production capacity and expand market share in Africa, the Middle East, and Europe.

In addition to this project, Sailun continues to pursue other investment opportunities. In early September, its subsidiary, Sailun Shenyang Tire, began expanding its production facility in Shenyang, China, after completing the acquisition of a Bridgestone factory for 265 million CNY (approximately $985 billion VND).

In Vietnam, the group operates three factories in Tay Ninh with an output exceeding 20 million tires annually. Sailun is the official tire supplier for most VinFast electric vehicle models and also supplies major companies such as Thaco and MP Logistic.

Amid rising global demand for tires, Sailun has identified production expansion and supply chain optimization as two key strategic priorities. The Egypt project is seen as a concrete step towards realizing this direction. Recently, Sailun Group also received an ESG rating upgrade to A from MSCI, based on environmental, social, and governance factors.

The combination of expanding production capacity and a commitment to sustainability is expected to strengthen Sailun's position in the international market. The group aims to become one of the most influential tire brands in the global automotive industry.

(Source: Sailun Group)