On June 17, Sailun Tire (601058.SH) announced that based on global industrial development trends and the company’s international development strategy, it plans to invest in the “Egyptian Tire Production Capacity Improvement Project” with a total investment of US$1.141 billion.
This is the third time Sailun Tire has “settled” in Egypt since August 2025.
As the first Chinese tire company to “go global” and build factories overseas, Sailun Tire has established production bases in Vietnam, Cambodia, Indonesia, and Mexico.
The “Egyptian Tire Production Capacity Improvement Project” planned to be constructed through the wholly-owned subsidiary Shams El Sherouk Tire Co., Ltd. (hereinafter referred to as “Shams El
Sherouk”) and the newly established wholly-owned subsidiary Senro Tire Co., Ltd. (hereinafter referred to as “Senro Tire”) were completed.
Among the US$1.141 billion investment, the construction investment is US$1.090 billion, the initial working capital is US$42.1 million, and the interest during the construction period is US$9.19 million.
The construction content of the project includes the annual production of 27 million semi-steel radial tires, 1.65 million all-steel radial tires and 20,000 tons of off-highway tires.
Among them, Shams El Sherouk is responsible for building the semi-steel radial tire part with an annual output of 9 million units, and Senro Tire is responsible for the construction of the remaining parts.
Of the total project investment, self-raised funds (including self-owned funds) are US$625 million and loans from financial institutions are US$517 million.
The construction period for the part being carried out by Shams El Sherouk will be 15 months, and the construction period for the part being carried out by Senro Tire will be 24 months.
In order to meet the construction capital needs and daily operating needs of its wholly-owned subsidiaries Shams El Sherouk and Senro Tire investment projects, Sailun Tire plans to increase capital in relevant subsidiaries.
The specific capital increase path is: Sailun Tire’s capital increase in its wholly-owned subsidiary SAILUN INTERNATIONAL HOLDING (HONGKONG) CO., LIMITED. (hereinafter referred to as “Sailun Hong Kong”) shall not exceed US$691 million; Sailun Hong Kong’s capital increase in its wholly-owned subsidiary SAILUN INTERNATIONAL HOLDING (SINGAPORE) PTE.LTD. (hereinafter referred to as “Singapore”) shall not exceed US$691 million; Sailun Singapore’s wholly-owned subsidiary Sailun
Tire Europe B.V. (hereinafter referred to as “Selun Europe”) will increase its capital by no more than US$684 million; Sailun Europe and Sailun Singapore will invest no more than US$141 million and US$1.43 million in Shams El Sherouk respectively, and their investment in Senro Tire will not exceed US$543 million and US$5.49 million respectively.
Sailun Tire stated that after the project is completed, the company will have an annual production capacity of 36 million semi-steel radial tires, 3.3 million all-steel radial tires and 20,000 tons of off-highway tires in Egypt.
With the implementation of the Egyptian project’s production capacity, the company will form a global production capacity matrix covering China, Vietnam, Cambodia, Mexico, Indonesia and Egypt, which can further enhance the company’s global operation capabilities and effectively resist the operating risks caused by international trade barriers.
The project’s feasibility analysis shows that after completion, it is expected to increase the company’s average annual operating income by US$1.161 billion and average annual net profit by US$170 million.
Relying on the new production capacity in Egypt, the company can further explore overseas market opportunities, better meet the needs of downstream customers, and effectively ensure the continued growth of the company’s product production and sales.
This is not the first time that Sailun Tire has been deployed in Egypt.
In April this year, it invested US$285 million in the construction of Egypt’s annual radial tire expansion project of 7.05 million units; in August 2025, it invested US$291 million in Egypt’s annual output of 3.6 million radial tire projects.
As the third largest automobile market in Africa, Egypt’s tire market has strong demand and continues to grow. At the same time, there is a production capacity gap, which provides space for the implementation of the project.
Global automobile sales will increase by 5% year-on-year in 2025, especially in the Asian market with China as the core.
The emerging automobile market has broad development space, and multinational companies are paying more and more attention to this market. As demand continues to grow, the scale of investment by companies will continue to expand. This is also the main reason why Chinese tire companies have continued to expand and build factories abroad in recent years.
Sailun Tire said: “Strengthening overseas investment and global layout is the only way to become a world-class tire company.”
