Egypt Signs $1 Billion Contract with China's Silon Group

                                 Signing Agreement with China's Silon Group

 

Egypt Signs $1 Billion Contract with China's Silon Group

The Egyptian Cabinet signed a contract on Wednesday with China's Silon Group to establish a tire factory in the Suez Canal Economic Zone, with a total investment of $1 billion.

The Cabinet explained in a statement that the project, which will be implemented in phases, will take three years to complete, with a final production capacity of 10 million tires per year. The first phase will have a production capacity of three million passenger car tires and 600,000 truck and bus tires, with completion scheduled for 2026.

The project aims to meet domestic market needs while also exporting. The Suez Canal Economic Zone includes six ports and four industrial zones along or near the strategic waterway and enjoys special legal and tax benefits to support international shipping and attract investment.

The government has intensified its infrastructure spending to enhance the region's competitiveness, according to previous statements by Walid Gamal El-Din, head of the Suez Canal Economic Zone Authority. This project comes as part of China's efforts to strengthen its economic presence in Egypt, through investments spanning the ports, green hydrogen, industry, and space sectors.