Wuxi, China – Jiangsu General Science Technology is raising capital through private placement to fund a fully automated smart plant with 1.2 million unit annual capacity for high performance truck and bus tires.
The company plans to raise up to €171 million (1.3 billion yuan) funds, all of which will be pumped into the new plant with €185 total investment, said its announcement in March.
“We are a strong player in the replacement market…and our products have been in short supply,” said the announcement. “The traditional production process, dependent on manpower, has higher labour cost, lower efficiency and cannot guarantee stability in product quality.”
The new plant, pending further regulatory approval, is located at General Science’s existing site in Wuxi, Jiangsu province and will take 15 months to complete. It’s expected to generate €47 million annual profit on €268 million sales when in full operation.
Last year General Science reported a 12% rise in revenue to €486 million, nearly 90% of which coming from the domestic market. Net profit dropped 13% to €19 million due to rising raw material prices.