Guiyang, China – Guizhou Tyre signed contract with Vietnam’s Long Giang Industrial Park on 12 November to build a truck and bus tire plant with 1.2 million unit annual capacity, according to the company’s filing in the following week.
Located in Tien Giang province and adjacent to Ho Chi Minh City, the new plant, first announced in April, has nearly 30 hectare total area with €340 million ($400 million) investment earmarked.
Two additional phases are disclosed in the November filing, including heavy duty and specialty tire facilities with 2 million unit annual capacity for phase two and rubber processing facilities for phase three.
Guizhou Tyre plans to pump €204 million into phase one with the truck and bus tire facilities. Phase two and phase three will receive €119 million and €17 million respectively.
According to Guizhou provincial government’s website, phase one is expected to finish construction in 2018 and come on stream in 2019, bringing in €99 million annual sales.
The company is also mulling natural rubber storage and trading centers at the site, said the government website.