Sailun Evaluates South African Tyre Plant with Planned ZAR 2 Billion Investment
Chinese tyre manufacturer Sailun Group is evaluating the construction of a new tyre manufacturing and recycling facility in the Coega Special Economic Zone (SEZ) near Gqeberha (Port Elizabeth), South Africa. The information was announced in an official media release issued by the Nelson Mandela Bay Municipality following meetings between municipal officials, the Coega Development Corporation (CDC), and representatives of Sailun Group.
According to the municipality, the project is currently undergoing a feasibility study and has not yet received final investment approval. The proposed first phase represents an investment of approximately ZAR 2 billion (around EUR 105 million).
If approved, the initial phase of the facility is expected to have an annual production capacity of approximately one million passenger car tyres and 300,000 truck and bus tyres. The municipality also stated that future expansion phases could significantly increase production capacity as market demand grows.
The planned facility would be located within the Coega Special Economic Zone, one of South Africa's leading industrial and logistics hubs. In addition to tyre manufacturing, the project is expected to include tyre recycling operations, supporting both industrial development and circular economy initiatives.
Nelson Mandela Bay Executive Mayor Babalwa Lobishe described the proposed investment as a major opportunity for the region, highlighting its potential to attract foreign direct investment, strengthen South Africa's manufacturing sector, and create significant employment opportunities. The municipality and the Coega Development Corporation are working together to support the feasibility assessment and facilitate the potential investment.
At this stage, however, Sailun has not announced a final investment decision. The company is continuing to evaluate the Coega SEZ as a potential production location before deciding whether to proceed with the project.
Should the investment move forward, the new facility would further expand Sailun's global manufacturing footprint and strengthen its presence in the African market, while positioning South Africa as an important regional production and export hub for the tyre industry.
Source: Official media release issued by the Nelson Mandela Bay Municipality, 30 July 2026: "Executive Mayor Lobishe leads drive to secure R2 billion global tyre manufacturing investment for Nelson Mandela Bay."