On April 21, Sailun Group Co., Ltd. issued the “Announcement on the Investment and Construction of the “Egypt Annual Production of 7.05 million Radial Tire Expansion Project” and the Capital Increase in Related Subsidiaries.”
Shams El Sherouk Tire Co., Ltd. is a wholly-owned company established by Shams El Sherouk Tire Co., Ltd. in Egypt through its overseas wholly-owned subsidiaries. It is mainly engaged in the production and operation of tire products.
The company is currently building projects to produce 3 million semi-steel radial tires and 600,000 all-steel radial tires annually.
In order to further improve the company’s overseas production capacity layout, better meet customer needs, and thereby enhance the company’s competitiveness, Shams El Sherouk plans to invest in the “Egyptian Annual Production of 7.05 million Radial Tire Expansion Project” with a total investment of US$285.43 million (equivalent to approximately 1.948 billion yuan).
The main content of the project is to produce 6 million semi-steel radial tires and 1.05 million all-steel radial tires annually. The construction site is Ataka-Insuhana, Suez Province, Egypt, and the Suez Canal Special Economic Zone TEDA Industrial Zone.
As early as September 10, 2025, the groundbreaking ceremony of Sailun Egypt project was held in the Suez Canal Special Economic Zone in Egypt.
Sailun Tire stated that this project is based on the analysis of international market demand and the needs of global strategic development, and is mainly aimed at the markets of Egypt and surrounding countries.
Relying on the development opportunities of Egypt’s automobile industry, market gaps and market demand potential in surrounding areas, it will match regional incremental market demand.
At the same time, we will make full use of Egypt’s location advantages at the intersection of Asia, Africa and Europe, as well as the convenient shipping and port logistics conditions of the Suez Canal, to optimize raw material procurement and logistics transportation paths, and achieve cost reduction and efficiency improvement in the supply chain.
The construction of this project will optimize the company’s global production capacity layout plan, improve the order response and delivery capabilities in the international market, and lay a solid foundation for the global development of the company’s brand.
As the first domestic tire company to build factories overseas, Sailun Tire already has rich experience in overseas project construction and operation.
This adjustment of the investment project plan will not have a major adverse impact on the company’s original projects, and will not harm the interests of the company and shareholders.
After the completion of this project, it is expected to achieve an average annual operating income of US$367.88 million and an average annual net profit of US$61.5 million, further enhancing the company’s economic benefits.
After the completion of the project, Shams El Sherouk will have an annual production capacity of 9 million semi-steel radial tires and 1.65 million all-steel radial tires, which will help enhance the company’s ability to deal with international trade barriers and form a global production capacity matrix with China, Vietnam, Cambodia, Mexico, and Indonesia, which is of great significance to improving corporate competitiveness and expanding market share.
The company’s official website shows that Sailun Group relied on the growth and development of Qingdao University of Science and Technology, the “China Rubber Industry Huangpu”. After more than 20 years of development, it has grown into an international enterprise integrating tire research and development, production and sales.
Currently, it has four major R&D centers, nine production bases, and three factories under construction around the world, and its products are sold in more than 180 countries and regions.
Up to now, Sailun Group has nine production bases and three factories under construction in China, Vietnam, Cambodia, Indonesia, Mexico, and Egypt. In addition, it has four major R&D centers around the world, located in China, North America, Europe, and Southeast Asia. It also controls the East China Intelligent Connected Vehicle Testing Ground. When it is completed, it will become China’s first and world-class comprehensive R&D and testing platform for smart transportation and smart driving, and has built a global R&D, production, sales and service system.
