Since the beginning of 2026, Chinese tire and industrial value-chain companies have expanded their investment in Egypt, announcing plans with a combined value of approximately RMB 40 billion. They are pursuing overseas expansion across the entire value chain, covering not only tire production but also materials and equipment, with the aim of building a diversified supply chain.
Since the beginning of 2026, at least 6 Chinese tire and industrial value-chain companies have successively announced expanded investment in Egypt. The total planned investment amounts to RMB 40 billion (approximately ¥950 billion), indicating the formation of an overseas cluster on a scale second only to Southeast Asia. Linglong Tire plans to build a semi-steel radial tire plant in Egypt with annual capacity of 6 million units, while Sailun Tire's cumulative investment is expected to increase to approximately US$1.7 billion. Upstream materials and equipment companies are also following suit, highlighting the development of the entire tire, materials and equipment value chain.
Investment extends beyond tire plants to the production of materials such as silica and carbon black, as well as mold and component manufacturing. Against the backdrop of Egypt's domestic market capacity, foreign-exchange movements and regulations, and the advantages of its port infrastructure, the trend toward direct exports to European, Middle Eastern and African markets is accelerating. Companies are leveraging trade agreements linking the region and lower tariff barriers, while large-scale projects spanning the first through third phases are being launched in succession and are expected to create jobs.
As three advantages and factors behind the boom, Egypt offers a strategic location centered on the Suez Canal, links with the EU and European free-trade arrangements, and policy support including tax incentives and streamlined reviews. In addition, trends in Europe's anti-dumping duties and trade-remedy investigations are increasing the importance of multi-site production and supply chains located close to the country of origin. With Egypt as a core hub, Chinese companies aim to build a global production matrix linking markets across the world through cooperation with Vietnam, Cambodia, Mexico, Indonesia and other countries.