Nelson Mandela Bay could soon become home to a major new tyre manufacturing and recycling facility, with the Municipality leading efforts to secure a proposed R2 billion investment that promises jobs, economic growth and increased industrial development.
Executive Mayor Babalwa Lobishe has reaffirmed the Municipality’s commitment to working with the Coega Development Corporation (CDC) and global tyre manufacturer Sailun Group as the company considers establishing a large-scale manufacturing hub at the Coega Special Economic Zone (SEZ).
Major boost for the local economy
If approved, the investment would further strengthen Nelson Mandela Bay’s position as South Africa’s automotive manufacturing hub while creating significant employment opportunities.
The proposed development includes:
- A R2 billion investment
- A 20-hectare manufacturing and recycling facility
- A production footprint of approximately 100,000m²
- Renewable energy generation and battery storage systems
- Sustainable manufacturing using treated industrial return-effluent water
During its first phase, the plant is expected to produce one million passenger vehicle tyres and 300,000 truck and bus tyres each year for the Southern African Customs Union (SACU) and the wider Sub-Saharan African market.
Hundreds of direct jobs expected
The development is expected to create around 200 direct jobs during its initial operational phase before expanding to approximately 800 permanent direct positions.
A further 1,200 indirect jobs could be created across construction, logistics and supporting industries.
Mayor Lobishe said attracting strategic investment remains central to Nelson Mandela Bay’s economic recovery plans.
“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.”
Why Sailun is considering Coega
Sailun Group is currently conducting feasibility studies after delays affected its original plans elsewhere in South Africa.
According to the Municipality, Coega has emerged as an attractive option because of its:
- Strategic location
- Direct access to the Port of Ngqura
- World-class logistics infrastructure
- Available industrial land
- Renewable energy opportunities
Municipal discussions with the CDC have focused on infrastructure planning, service delivery, utility tariffs, renewable energy integration and creating an investor-friendly environment.
Supporting Nelson Mandela Bay’s long-term growth
The Municipality believes the investment would help:
- Attract foreign direct investment
- Grow manufacturing in Nelson Mandela Bay
- Expand the automotive value chain
- Increase exports through the Port of Ngqura
- Promote tyre recycling and circular economy initiatives
- Strengthen investor confidence in the Metro
Mayor Lobishe said the proposed facility represents far more than a new manufacturing plant.
“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.”
Why this matters for Nelson Mandela Bay
With unemployment remaining one of the Metro’s biggest challenges, a project of this scale could provide a significant boost to both job creation and local industry. While the investment is still subject to feasibility studies and final approvals, the proposal highlights Nelson Mandela Bay’s continued efforts to position itself as a competitive destination for international investment and advanced manufacturing.
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