Chinese Tiremakers Rush to Egypt in Collective Push
Date：2026/9/14
On September 9, Caixin reported that after years of clustering in Southeast Asia, Egypt has become a new hot spot for Chinese tire supply-chain investment. Sailun Tire's first-phase Egypt plant is progressing well and is expected to start production this year. Linglong Group and Zhongce Rubber also signed cooperation documents with Egyptian authorities in early September.
Industry insiders say that from Thailand and Vietnam to Cambodia and now Egypt, Chinese tire makers are forming a new wave of overseas cluster布局. Egypt has the potential to become a "second Southeast Asia."
Major Egypt investment projects by Chinese tire and supply-chain companies:
| Company/Project | Investment | Location in Egypt | Main Content/Capacity | Progress |
|---|---|---|---|---|
| Zhongce Rubber | About USD 500 million (RMB 3.36 billion) | Sokhna Industrial Zone | Tire manufacturing complex, including passenger car and truck tire lines and supporting facilities, in three phases, about 95% for export | Letter of intent signed; still in study and preliminary assessment |
| Linglong Group | About USD 2 billion (RMB 13.4 billion) | MOU signed in Cairo; park not disclosed | Auto parts industrial park, including tire plant, industrial conveyor belts, steel cord, carbon black, etc., covering about 3 million sqm | Cooperation MOU signed |
| Sailun Tire | USD 1.141 billion (RMB 7.66 billion) | Teda Industrial Zone | 36 million semi-steel radial tires/year, 3.3 million all-steel radial tires/year, 20,000 tons off-the-road tires/year | First phase expected to start production this year; capital increase for capacity upgrade project |
| Chaoyang Long March | USD 190 million (RMB 1.27 billion) | Sokhna Industrial Zone | 4.5 million passenger car tires/year, 1 million heavy truck tires/year | First phase foundation laid |
| Aeolus | About RMB 2.68 billion | Alexandria Port | 1.5 million truck and bus tires/year, 30,000 engineering vehicle tires/year, 30,000 agricultural tires/year | Plans to invest and build plant |
| Zhongtian Iron and Steel | USD 300 million (RMB 2.01 billion) | Teda Industrial Zone | 120,000 tons steel cord/year, 50,000 tons bead wire/year | Contract signed and landed |
Why Egypt? Industry insiders point to three main advantages:
First, location and logistics. Egypt connects directly to the Mediterranean via the Suez Canal, greatly shortening shipping time to Europe and making logistics more competitive.
Second, tariff benefits. Egypt is party to multiple trade agreements. Under the Egypt-EU free trade agreement, products meeting rules of origin can enter the EU at preferential rates, helping avoid EU anti-dumping duties on Chinese tires. It also covers the African Continental Free Trade Area and Middle East Arab markets.
Third, market and cost. Egypt is Africa's third-largest auto market. Car ownership is rising steadily, tire demand is growing long term, but local tire manufacturing capacity is seriously insufficient and supply relies heavily on imports. The gap in high-end commercial vehicle and high-quality passenger car tires is hard to fill in the short term. Egypt also has lower labor costs, and its local auto assembly industry brings supporting demand.
Still, building in Egypt comes with risks. Insiders note that Egypt's local currency is volatile, and infrastructure and supply-chain support are currently weaker than in Southeast Asia. EU rules of origin are also strictly reviewed, with hard requirements on local content ratios. Some companies have visited Egypt but are still weighing whether to build there.
Disclaimer:
This news release is compiled based on publicly available online information, with materials sourced from relevant media and official channels. The content is an original compilation for reference purposes only and does not constitute any investment or business advice. While we strive for accuracy and completeness, we make no express or implied warranties regarding the absolute accuracy, timeliness, or completeness of the information. In case of any discrepancies, the official announcements shall prevail.