Egypt, China sign $1B tire factory deal in Suez Canal Zone

Egypt has signed a $1 billion agreement with China’s Sailun Group to build a tire factory in the Suez Canal Economic Zone (SCZONE), according to Reuters. Construction will reportedly take three years, with the first phase to be completed in 2026. Once fully operational, the plant will produce 10 million tires annually reducing Egypt’s reliazne

The SCZONE, comprising six ports and four industrial areas, enjoys special legal and tax incentives to attract global investors. Positioned along a key trade artery, it is central to Egypt’s Vision 2030 industrial strategy. China has been expanding its footprint in the zone through projects in ports, green hydrogen, industry, and space.

Chinese-led investments in SCZONE also include Shandong Tianyi Chemical’s $110 million bromine complex and a $360 million tire venture with Egypt’s Arab Organization for Industrialization, according to AInvest.These projects aim to reduce import dependence, create thousands of jobs, and integrate Egypt into global supply chains.

Officials say SCZONE is evolving into a manufacturing and logistics hub for Africa and the Middle East, benefiting from its strategic location, infrastructure growth, and alignment with green and high-value industries—making it a rising destination for long-term foreign investment.