Wuxi, China – Jiangsu General Science Technology plans to build a new tire plant in Thailand’s Rayong Industrial Zone with up to $300 million (€259 million) investment.
The plant is designed with 1 million truck and bus tire annual capacity and 6 million passenger car tire annual capacity, said General Science’s announcement in September.
Construction is slated to take 15 months, and the plant is expected to generate €31 million (250 million yuan) annual net profit on €274 million revenue when on full stream upon the third year of its operation.
“China’s is under the heaviest anti-dumping and countervailing investigations among global markets,” said the announcement.
“An overseas plant can effectively bypass international trade barriers on our tire export and buttress the company’s further global expansion, the company added”
General Science first proposed the overseas plant in Cambodia this April but has decided to change its location.
Thailand has relatively advanced infrastructure as well as sophisticated upstream and downstream industries.
Existing tire plants in Thailand include facilities operated by Bridgestone, Michelin, Zhongce and Linglong, said the announcement
Thailand’s “domestic political stability” and upward economic development also guarantees the company’s sustainability, stated General Science.
The country’s recent partnerships with China, such as under the ‘belt and road’ initiative “will bring great opportunities,” added the announcement.