Sailun Expands Egypt Tire Manufacturing Capacity with USD 1.14 Billion Investment

Sailun Group Co., Ltd. has announced a major investment initiative aimed at expanding tire production capacity in Egypt. The company revealed on June 18 that it will invest USD 1,141.31 million in a large-scale manufacturing project designed to strengthen its production footprint and support growing customer demand across multiple international markets.

The planned expansion project will add substantial manufacturing capacity, including annual production capabilities of 27 million semi-steel radial tires, 1.65 million all-steel radial tires, and 20,000 tons of off-road tires. The investment reflects the company’s long-term strategy to enhance supply capabilities and improve market responsiveness for customers in key regions.

Planned Tire Production Capacity Expansion in Egypt

The project encompasses multiple tire categories and production facilities that will be developed through wholly owned subsidiaries operating in Egypt.

Production Capacity Breakdown

Below is the planned annual production capacity under the expansion project.

Egypt Tire Capacity Expansion Details

Project Execution Structure

Shams El Sherouk Tyre Co., Ltd., a wholly owned subsidiary of Sailun Group, will undertake construction of the facility responsible for producing 9 million semi-steel radial tires annually. The remaining production capacity will be developed by Senro Tyre Co., Ltd., a wholly owned subsidiary that will be newly established in Egypt for this purpose.

The newly established entity will be responsible for building facilities with annual production capacities of 18 million semi-steel radial tires, 1.65 million all-steel radial tires, and 20,000 tons of off-road tires. This structure allows the company to distribute project execution responsibilities while supporting efficient implementation of the overall expansion program.

Investment Allocation

The total project investment of USD 1,141.31 million is divided among construction costs, working capital requirements, and financing-related expenses incurred during the construction phase.

Investment Allocation for Egypt Expansion Project

Strategic Objective of the Expansion

Sailun Group stated that the investment is intended to better serve customer demand in Egypt, Europe, North America, and other international markets. By expanding manufacturing capacity in Egypt, the company aims to strengthen production flexibility, improve supply capabilities, and support long-term growth opportunities across multiple regions.

Frequently Asked Questions

What is the total investment planned by Sailun Group for the Egypt tire expansion project?
Sailun Group plans to invest USD 1,141.31 million in the Egypt tire production capacity expansion project. The investment includes construction expenses, working capital requirements, and construction-period interest costs. The project represents one of the company's significant manufacturing expansion initiatives and is designed to increase production capabilities across multiple tire categories while supporting demand from Egypt, Europe, North America, and other international markets.

What tire production capacity will be added under the project?
The expansion project will add annual production capacity of 27 million semi-steel radial tires, 1.65 million all-steel radial tires, and 20,000 tons of off-road tires. These facilities will be developed through Sailun Group’s wholly owned subsidiaries operating in Egypt. The expanded capacity is intended to strengthen manufacturing output, improve supply capabilities, and support customer requirements across several key regional and global markets.