The speciality tire facility is part of the plant’s off-the-road tire project containing 30,000 tonne annual capacity started in 2015, along with a truck and bus tire project with 1.2 million unit annual capacity.
The Vietnam plant also passenger car tire facilities able to make 7.8 million units a year and is running at nearly full utilization rate, said the company. Tires made here are supplied to the local market as well as Europe, North America and the Middle East.
According to Sailun’s 2017 interim report, international trade protectionism and China’s rising feedstock prices are throwing a grim shadow over the sector.
Over the first six months this year, Sailun reported a 28% rise in sales to €833 million (6.5 billion yuan) but saw its net profit drop by 91% to €2.4 million.
“Given situations such as the US anti-dumping tariffs, the Vietnam site is crucial to our measures to counter trade barriers,” the company added.