Nelson Mandela Bay Backs R2 Billion Tyre Plant Proposal

Lobishe said every major investment strengthens local businesses, creates employment and builds confidence in the city's ability to attract international investors.

Nelson Mandela Bay Municipality has reaffirmed its commitment to securing a proposed R2 billion investment by global tyre manufacturer Sailun Group, which is considering the Coega Special Economic Zone (SEZ) as the location for a new tyre manufacturing and recycling facility. The project has the potential to strengthen the metro's automotive industry, create thousands of jobs and boost long-term economic growth across the Eastern Cape.

Executive Mayor Babalwa Lobishe said attracting large-scale investments remains a priority as the municipality works to revive the local economy and strengthen Nelson Mandela Bay's position as a leading manufacturing destination.

The proposed facility would serve the Southern African Customs Union (SACU) and the wider sub-Saharan African market. Sailun Group is currently conducting feasibility studies after delays affected its original investment plans elsewhere in South Africa. The company is now evaluating the Coega SEZ because of its strategic location, modern logistics infrastructure, available industrial land, renewable energy opportunities and direct access to the Port of Ngqura.

Lobishe said every major investment strengthens local businesses, creates employment and builds confidence in the city's ability to attract international investors.

Thousands of Jobs Expected

The proposed development will cover 20 hectares and include a manufacturing plant with an estimated production footprint of 100,000 square metres. During its first phase, the factory is expected to produce one million passenger vehicle tyres and 300,000 truck and bus tyres each year, with production expected to expand as demand grows.

The project is forecast to create around 200 direct jobs during the initial operational phase, increasing to approximately 800 permanent positions as the facility expands. More than 1,200 indirect employment opportunities are also expected across construction, logistics and related industries, providing a significant boost to the regional economy.

Sustainable Manufacturing at the Core

The planned facility will incorporate several environmentally focused features, including embedded renewable energy generation, battery storage systems and the use of treated industrial return-effluent water to support sustainable manufacturing processes.

Municipal officials said the investment aligns with broader development goals by promoting renewable energy adoption, supporting tyre recycling initiatives and encouraging a circular economy while expanding South Africa's industrial base.

Partnership to Strengthen Investor Confidence

The municipality has been working closely with the Coega Development Corporation (CDC), the Department of Trade, Industry and Competition (the dtic) and other stakeholders to present Nelson Mandela Bay as an attractive destination for global investors. Discussions have focused on municipal services, utility tariffs, infrastructure planning, renewable energy integration and streamlining investment processes.

Lobishe said the project represents much more than a new manufacturing plant. She described it as an opportunity to restore investor confidence, expand the automotive value chain, strengthen exports through the Port of Ngqura and reinforce Nelson Mandela Bay's reputation as South Africa's automotive capital.

She added that the municipality will continue working with all levels of government and strategic partners to secure investments that create sustainable jobs, stimulate economic growth and improve the lives of local communities.