Nelson mandela bay: The Executive Mayor of the Nelson Mandela Bay Municipality, Babalwa Lobishe, has reaffirmed the metro's unwavering commitment to secure a proposed R2 billion investment by Sailun Group to establish a tyre manufacturing and recycling facility at the Coega Special Economic Zone (SEZ). The project is expected to bolster Nelson Mandela Bay's standing as a leading automotive manufacturing hub, creating thousands of jobs, expanding local industrial capacity, unlocking new export markets, and significantly enhancing the municipality's long-term revenue base.
According to South African Government News Agency, the Mayor's commitment follows strategic engagements with the Coega Development Corporation (CDC) and Sailun Group, as the company evaluates the Coega SEZ as a preferred location for its regional tyre manufacturing hub. Lobishe emphasized the importance of attracting strategic investment as central to the municipality's economic recovery and growth agenda, highlighting that Nelson Mandela Bay is ready to compete for global investment.
Global tyre manufacturer, Sailun Group, is conducting feasibility studies for the hub, which will supply the Southern African Customs Union (SACU) and the broader sub-Saharan African market. The Coega SEZ is being considered due to its strategic location, world-class logistics infrastructure, industrial land availability, renewable energy opportunities, and direct access to the Port of Ngqura.
The proposed development plans include a 20-hectare manufacturing facility with an estimated production footprint of 100,000m². The facility aims to incorporate embedded renewable energy generation, battery storage systems, and the use of treated industrial return-effluent water to support sustainable manufacturing. In its initial phase, the facility is expected to produce one million passenger vehicle tyres and 300,000 truck and bus tyres annually, with future expansion anticipated.
The investment is projected to create about 200 direct jobs during the initial operational phase, increasing to approximately 800 permanent positions as the facility expands. Additionally, more than 1,200 indirect employment opportunities are expected across the construction, logistics, and supporting industries.
Lobishe stressed the municipality's commitment to collaborating with the Coega Development Corporation, the Department of Trade, Industry and Competition (the dtic), and all relevant stakeholders to ensure Nelson Mandela Bay offers a competitive and investor-friendly environment. The discussions between the municipality and the CDC have focused on ensuring municipal service delivery, utility tariffs, infrastructure planning, renewable energy integration, streamlined municipal processes, and coordinated investment facilitation.
The proposed investment aligns with Nelson Mandela Bay's long-term development priorities by attracting substantial foreign direct investment, driving manufacturing-led economic growth, creating sustainable employment opportunities, expanding the automotive value chain, increasing localisation of industrial production, supporting exports through the Port of Ngqura, and promoting renewable energy adoption and circular economy initiatives through tyre recycling.
Lobishe remarked that the investment is not just about building a manufacturing plant but about restoring confidence, creating hope through sustainable jobs, strengthening the industrial economy, and demonstrating that Nelson Mandela Bay is open for business. The municipality will continue working with government spheres and strategic partners to unlock opportunities that benefit residents and grow the local economy.