EXECUTIVE MAYOR LOBISHE LEADS DRIVE TO SECURE R2 BILLION GLOBAL TYRE MANUFACTURING INVESTMENT FOR NELSON MANDELA BAY
Published: July 30, 2026<< BACK TO NEWS
Executive Mayor of the Nelson Mandela Bay Municipality, Councillor Babalwa Lobishe, has reaffirmed the Municipality's unwavering commitment to securing one of the most significant foreign direct investment opportunities in South Africa, following strategic engagements with the Coega Development Corporation (CDC) and the global tyre manufacturer, Sailun Group, regarding its proposed R2 billion tyre manufacturing and recycling facility at the Coega Special Economic Zone (SEZ).
The proposed investment represents a transformational opportunity for Nelson Mandela Bay and the Eastern Cape economy. Beyond strengthening the City's position as Africa's leading automotive manufacturing hub, it has the potential to create thousands of employment opportunities, expand local industrial capacity, unlock new export markets and significantly grow the Municipality's long-term revenue base.
Executive Mayor Lobishe said attracting strategic investments remains at the centre of the Municipality's economic recovery and growth agenda.
"Nelson Mandela Bay is ready to compete for global investment. We are determined to create an enabling environment where investors can establish, grow and contribute meaningfully to our local economy. Every major investment we secure creates employment, stimulates local businesses, expands our manufacturing capability and restores confidence in our city as an investment destination."
The Sailun Group is undertaking feasibility studies for the establishment of a regional tyre manufacturing hub that will serve the Southern African Customs Union (SACU) and the broader Sub-Saharan African market. Following delays affecting its originally proposed location elsewhere in the country, the company is now assessing the Coega SEZ as a preferred investment destination because of its strategic location, world-class logistics infrastructure, industrial land availability, renewable energy opportunities and direct access to the Port of Ngqura.
The proposed development includes an investment of approximately R2 billion, a 20-hectare manufacturing facility, an estimated 100 000m² production footprint, embedded renewable energy generation and battery storage systems, while utilising treated industrial return-effluent water to support sustainable manufacturing practices.
During its initial phase, the facility is expected to manufacture one million passenger vehicle tyres and 300 000 truck and bus tyres annually, with future expansion expected to increase production significantly in line with market demand. The investment is projected to create approximately 200 direct jobs during the initial operational phase, growing to approximately 800 permanent direct jobs, while generating more than 1 200 indirect employment opportunities across construction, logistics and supporting industries.
Executive Mayor Lobishe emphasised that the Municipality is committed to working collaboratively with the Coega Development Corporation, the Department of Trade, Industry and Competition (the dtic) and all relevant stakeholders to ensure Nelson Mandela Bay presents a competitive and investor-friendly value proposition.
"Our role as local government is to facilitate sustainable investment while ensuring responsible governance and long-term municipal sustainability. Through coordinated planning and responsive service delivery, we are committed to creating an environment where strategic investors can succeed and where local communities benefit through employment, enterprise development and economic inclusion."
The Municipality's engagement with the CDC has focused on providing certainty around municipal service delivery, utility tariffs, infrastructure planning, renewable energy integration, streamlined municipal processes and coordinated investment facilitation. These discussions seek to ensure that Nelson Mandela Bay remains internationally competitive while maintaining responsible financial governance and service delivery sustainability.
The proposed investment aligns directly with the Municipality's long-term development priorities by:
Attracting substantial foreign direct investment into Nelson Mandela Bay;
Driving manufacturing-led economic growth;
Creating sustainable employment opportunities;
Expanding the automotive manufacturing value chain;
Increasing localisation of industrial production;
Supporting exports through the Port of Ngqura;
Growing the municipal revenue base;
Promoting renewable energy adoption and circular economy initiatives through tyre recycling; and
Strengthening investor confidence in Nelson Mandela Bay and the Eastern Cape.
Executive Mayor Lobishe said the investment also presents an important opportunity to reinforce Nelson Mandela Bay's reputation as South Africa's automotive capital while contributing meaningfully to national industrialisation objectives.
"This investment is about far more than a manufacturing plant. It is about restoring confidence, creating hope through sustainable jobs, strengthening our industrial economy and demonstrating that Nelson Mandela Bay is open for business. We will continue working with all spheres of government and our strategic partners to unlock opportunities that improve the lives of our residents and grow our local economy."
The Nelson Mandela Bay Municipality remains committed to supporting strategic investments that advance inclusive economic growth, accelerate industrial development and position the Metro as the investment destination of choice in South Africa.
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