CAIRO — Egypt has secured a US$300 million Chinese investment in automotive tyre reinforcement materials as Cairo accelerates efforts to build a vertically integrated manufacturing base capable of serving regional and global export markets through the Suez Canal Economic Zone (SCZONE).
Prime Minister Mostafa Madbouly witnessed the signing of an agreement with China’s Zenith Group Co., Ltd., part of Zhongtian (ZTT) Group, to establish a new manufacturing facility within the TEDA Egypt Industrial Zone in Ain Sokhna. The project underscores Egypt’s strategy of attracting higher-value industrial investments while expanding domestic production of critical intermediate manufacturing inputs.
The factory will be developed on a 320,000-square-metre site and will produce 120,000 tonnes annually of steel cord—the high-tensile reinforcement used in radial tyres—and 50,000 tonnes of bead wire, the steel component that secures tyres to wheel rims. The investment is expected to create around 1,000 direct jobs, with approximately 30 per cent of production targeted for export to markets across the Middle East, Europe and the Americas.
Beyond its headline investment value, the project represents a significant step in Egypt’s ambition to localise advanced manufacturing and reduce reliance on imported intermediate materials. Steel cord and bead wire rank among the highest-value inputs in tyre production, making their domestic manufacture strategically important for supporting downstream automotive industries while increasing local value addition.
The investment also strengthens SCZONE’s growing industrial cluster centred on automotive manufacturing. Rather than attracting isolated factories, the zone has increasingly focused on building integrated supply chains in which upstream raw materials, component manufacturers and finished-product producers operate within the same industrial ecosystem. Officials expect this approach to improve supply-chain resilience, lower production costs and enhance export competitiveness.
The project reflects a broader trend of Chinese manufacturers expanding production capacity in Egypt to serve European, Middle Eastern and African markets. Egypt’s strategic location on one of the world’s busiest maritime trade routes, combined with preferential trade agreements and expanding industrial infrastructure, has strengthened its appeal as an export-oriented manufacturing platform amid ongoing global supply-chain diversification.
Over recent years, SCZONE has attracted a growing pipeline of Chinese investments across automotive, engineering, chemicals and advanced manufacturing industries, reinforcing its role as one of Egypt’s principal gateways for foreign direct investment. Zenith’s latest commitment further advances the zone’s transition from an industrial assembly base into a fully integrated manufacturing hub capable of supporting higher-value production and generating greater export revenues.
Related news:
Egypt Opens 9 Industrial Projects in Suez Canal Economic Zone with $182.5mn Investments
Egypt, France Expand Strategic Partnership Through Health, Skills and Green Industry Investments
Read also:
Oman’s Economic Upswing Deepens as Duqm Emerges as Regional Investment Magnet
Alpha Smart Invests $100mn in Integrated Sokhna Industrial Complex
