Egypt seals a $1 billion agreement with China's Sailun Group for the establishment of a tire manufacturing plant.
In a move to strengthen economic ties, Egypt has signed a deal with China's Sailun Group to construct an automotive tire factory within the Suez Canal Economic Zone (SCEZ). This ambitious project, worth approximately $1 billion, is set to take about three years to complete, with the first phase scheduled for completion by 20226[1][2].
Upon completion, the factory will have an annual production capacity of 10 million tires[3]. The SCEZ, consisting of six ports and four industrial areas, has been strategically positioned to attract investors with special legal and tax advantages[4].
The SCEZ's chairperson stated last year that the zone is spending heavily on infrastructure to attract more investments[5]. This investment from China is part of a broader context of deepening China-Egypt economic relations, where Chinese investments also cover sectors such as electric vehicles, green hydrogen, and solar energy[1][2][3].
More than 160 Chinese enterprises currently operate in the China-Egypt TEDA Suez Economic and Trade Cooperation Zone, highlighting the strategic and growing partnership between the two countries[1][2][3]. The Sailun Group's tire factory is a flagship example of China's commitment to manufacturing growth and strategic economic partnership with Egypt[2][3].
In addition to industrial projects, China and Egypt have enhanced trade ties by agreeing to conduct bilateral trade in local currencies, particularly favouring the Chinese yuan. This financial cooperation is part of a broader strategy to strengthen economic sovereignty and foster south-south cooperation led by China and Egypt[6][7].
The SCEZ's focus on infrastructure development and China's extensive investments across various sectors in Egypt are just a few examples of the growing economic relationship between the two countries. As the factory progresses, it will undoubtedly contribute to the economic growth and strategic partnership between China and Egypt.
References:
- China Daily
- Reuters
- Arab News
- Suez Canal Economic Zone
- Reuters
- China Daily
- South China Morning Post
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