China’s Zenith Steel Group, a subsidiary of Zhongtian Group, has signed an agreement to develop a tyre-components manufacturing facility within the China–Egypt TEDA industrial zone in Sokhna, part of the Suez Canal Economic Zone (SCZone).
Zenith has become the latest Chinese company to back Cairo’s growing ambition of production of becoming a hub for tyre manufacturing.
The agreement, signed with the General Authority for the Suez Canal Economic Zone, will see the company establish the factory inside the China-Egypt TEDA industrial zone in Ain Sokhna.
The project will involve an investment of US$300 million and will cover approximately 320,000 sq m in the Sokhna Industrial Zone, according to SCZone Chairman Walid Gamal El-Din.
The facility will feature advanced production lines with an annual capacity of 120,000 tonnes of steel cord used in tyre manufacturing, alongside 50,000 tonnes of bead wire.
Around 30% of the project’s total output is expected to be exported to markets across the Middle East, Europe, and the Americas, supporting Egypt’s efforts to strengthen its position as a regional export hub for advanced engineering components.
The project will create about 1,000 direct jobs. The investment is the latest in a wave of Chinese manufacturing projects that are reshaping Egypt’s industrial landscape and strengthening its position as a production base serving African, European and Middle Eastern markets.
Over the past year, Chinese companies have announced a string of large investments, including Shandong Linglong Tyre’s planned US$2 billion factory, Sailun Group’s US$1 billion investment, National Tire and Rubber Corporation’s US$550 million project, Aeolus Tyre’s US$396 million investment, Chaoyang Longmarch’s US$190 million factory and Himile Group’s US$100 million project.