Wuxi, China – Jiangsu General Science Technology, a tire maker based in Wuxi, Jiangsu specialising in full-steel truck and bus tire and bias tire, is to build 6 million unit per year passenger car tire facilities in the city according to its filing in February.
The facilities were originally planned for motorcycle and bicycle tires at the same capacity, and such change was made as “the company’s portfolio can no longer meet the market demand,” said the filing.
The new project has €22 million (Yuan162 million) total investment and is scheduled to be completed in December 2017. It’s expected to generate €4 million annual profit on €93 million revenue when in operation.
“Our new project targets mid- to high-end markets,” the company’s board secretary Bian Yabo told ERJ. “Our experience in truck and bus tire will help [the passenger car tire project] in aspects such as sales network, talent and research.”
General Science went public on the Shanghai Stock Exchange last September. Over the first nine months of 2016 it reported a 4% rise in net profit to €18 million. Revenue during the same period grew by 3% to €329 million.