Urumqi, China – Double Coin’s 51-percent owned subsidiary Double Coin (Xinjiang) Kunlun Tire earlier in April started its radial TBR expansion project with 1.2 million unit annual capacity.
Update: Double Coin expands, but question over Shanghai facility
The company plans to pump 1.1 billion yuan (€151 million) into the expansion project, located at its current site in Midong Industrial Park, Urumpqi, Xinjiang.
New facilities are expected to begin operation by the end of 2018 and bring in €12 million annual net profit on €215 million revenue.
With 1 million unit existing annual capacity for radial TBR, the company will become the largest radial TBR maker in Northwest China, said its website.
The company’s research centre has new product development plans, upping the proportion of high dispersion white carbon black in overall carbon black use to 26%.
The unit is also employing finite element analysis to reduced tire noise and raise lifespan, the subsidiary’s deputy director of technology department Wu Xuebin told ERJ.
The 2,300-employee company also has 1.2 million unit annual capacity for bias engineering and agricultural tires, and sells in Central Asia, Pakistan, India, Vietnam and Thailand.
Meanwhile, it is being widely reported that Double Coin has shut down its tire plant in Shanghai, which specialises in TBR and OTR products with an annual capacity of 2.8 million units.
The facility, say reports, closed down in April and the capacity will be moved to Double Coin’s plants in Rugao, Jiangsu and Chongqing. High operating cost is said to be the major reason.
ERJ is trying to contact Double Coin regarding the reports. The company had not issued any press statement about the matter, as of 24 April.