Zenith Steel to Invest $300M for Tyre Wire Plant at Tianjin Egypt Development Area
On 1 July 2026, Zenith Steel signed an agreement with the Suez Canal Zone Authority (SCZone) to invest USD 300 million in a tyre wire factory at the Tianjin Egypt Development Area (TEDA). Zenith Steel is a subsidiary of Chinese conglomerate Jiangsu Zhongtian Technology Group (ZTT Group, SHSE: 600522). The industrial park is located in Sokhna, a coastal city on the Red Sea situated some 55 kilometers south of Suez City and 120 kilometers east of the capital Cairo.
The Plant will cover an area of about 320,000 square meters and have an annual capacity of 120,000 tonnes of steel cords for reinforcing tyres and 50,000 tonnes of bead wire to anchor the tyre to the wheel rim. The Plant will create 1,000 direct jobs, mostly for local people. Zenith Steel plans to market its products to both the local and overseas markets; it plans to export about 30% of its total production to the Middle East, Europe and the USA.
“This project will reinforce the capabilities of Egypt to become a regional manufacturing and export hub. The new Plant will allow the vertical integration within the automobile industry by supporting existing partners.”
SCZone Chair Walid El-Din
Over the past few years, several companies in the auto ecosystem have invested in Egypt. Thus, the tyre manufacturers such as Shandong Linglong Tyre ($2B), Sailun Group ($1B), China National Tire and Rubber Corporation ($550M), Aeolus Tyre ($396M), Chaoyang Longmarch ($190M), and Himile Group ($100M) are all present in Egypt. In addition, several automakers, such as General Motors, Toyota, Stellantis, have set up assembly plants in Egypt.
Egypt is at the confluence of Africa, Europe, and Asia with the Suez Canal providing a shortcut for ships from Asia to Europe. Egypt is part of the African Continental Free Trade Area (AfCFTA), and has signed the Greater Arab Free Area (GAFTA) and the EU-Egypt Partnership Agreement (EEPA). These #FTA and investments reinforce the position of Egypt as a manufacturing hub for the auto industry in the region. As per Egypt’s National Industry Strategy 2030, the country plans to achieve at least 60% #LocalContent.