Sailun Group ZAR 2 Billion Tire Manufacturing Facility Planned at Coega SEZ

South Africa's Nelson Mandela Bay Municipality confirmed on July 30 that it has entered strategic discussions with the Coega Development Corporation (CDC) and Sailun Group regarding a proposed ZAR 2 billion tire manufacturing and recycling facility at the Coega Special Economic Zone (SEZ). The company is evaluating the Coega SEZ as its preferred investment destination because of its strategic geographic position, well-developed logistics network, renewable energy opportunities and direct access to the Port of Ngqura. The Sailun Group ZAR 2 Billion Tire Manufacturing Facility is expected to strengthen regional tire production capacity while supporting long-term industrial development.

Planned Production Capacity and Market Focus

The proposed development will occupy a 20-hectare site within the Coega Special Economic Zone and include a manufacturing footprint of approximately 100,000 square meters. During its initial operational phase, the facility is planned to produce one million passenger vehicle tires every year alongside 300,000 truck and bus tires annually. Production from the plant will primarily supply the Southern African Customs Union (SACU) while also serving customers across the wider Sub-Saharan African market, supporting growing regional demand for locally manufactured tires.

Proposed Investment Overview

Employment and Economic Impact

The project is expected to generate approximately 200 direct jobs during its initial operational phase. As production expands and the facility reaches higher operating levels, permanent direct employment is projected to increase to around 800 positions. Along with enhancing regional manufacturing capabilities, the investment has the potential to strengthen the local automotive supply chain, support industrial growth within the Coega SEZ and reinforce South Africa's position as an important production hub serving both SACU and Sub-Saharan African markets.

Frequently Asked Questions

What is the proposed Sailun tire manufacturing project at the Coega SEZ?
The proposed project involves Sailun Group evaluating a ZAR 2 billion investment to establish a tire manufacturing and recycling facility within South Africa's Coega Special Economic Zone. The planned 20-hectare development will include a 100,000 square meter production facility capable of manufacturing one million passenger vehicle tires and 300,000 truck and bus tires annually. The project is intended to supply SACU and Sub-Saharan African markets while creating up to 800 permanent direct jobs as operations expand.