Egypt has signed a deal with China's Sailun Group to build an automotive tyre factory in the Suez Canal Economic Zone, with total investments of $1 billion, a cabinet statement said on Wednesday.

The facility will take three years to complete and will eventually produce 10 million tyres annually, the statement said. The first phase is due to be completed in 2026, it said.

Egypt's Suez Canal Economic Zone (SCEZ)is a collection of six ports and four industrial areas alongside, or near the strategic waterway.

The government has granted the area special legal and tax advantages to benefit from international shipping passing by. The zone's chairman said last year that it was spending heavily on infrastructure as it worked to attract investors.

China has been looking to step up its economic activity in Egypt, including in projects involving ports, green hydrogen, industry and space.