Sailun Unveils Major $1.1bn Egypt Tire Expansion Plan

Sailun Group plans to invest $1.14 billion in a major tire capacity expansion project in Egypt, which would significantly increase its production footprint in the country and support growing demand across Africa, Europe, and North America. The project, dubbed the “Egypt tire capacity enhancement project”, would have an annual capacity for 27 million passenger car radial (PCR) tires, 1.65 million truck and bus radial (TBR) tires, and 20,000 tonnes of off-the-road (OTR) tires. The total investment amounts to $1.141 billion, including $1.09 billion in construction costs, $42.1 million in working capital, and $9.19 million in interest during construction. The project is designed to enhance the company’s overall strength and global core competitiveness in line with global industrial development trends and the company’s internationalisation strategy. The expansion would be undertaken by Shams El Sherouk Tyre Co. Ltd., Sailun’s existing Egyptian subsidiary, and a newly established wholly owned subsidiary in Egypt, provisionally named Senro Tyre Co. Ltd. Once completed, Sailun’s Egyptian operations would have an annual production capacity of 36 million PCR tires, 3.3 million TBR tires, and 20,000 tonnes of OTR tires, creating a “global production matrix” spanning China, Vietnam, Cambodia, Mexico, Indonesia, and Egypt. The group estimates the completed project could generate average annual revenue of $1.16 billion and average annual net profit of $170 million.