Guiyang, Guizhou – China’s Guizhou Tyre plans to set up a fully-owned subsidiary in Vietnam to advance its truck and bus tire project with 1.2 million unit per year capacity.
The subsidiary, called Advance Tyre (Vietnam), has €38 million ($43 million) registered capital and its business scope covers the manufacturing of rubber tires and rubber products, said Guizhou Tyre’s announcement on 5 March.
The €214-million tire plant is located at the Long Giang Industrial Park in Tien Giang province, adjacent to Ho Chi Minh City.
First announced in April 2017, the project was originally scheduled to finish construction in 2018 and come on-stream in 2019, according to Guizhou provincial government’s website.
ERJ has not been able to reach Guizhou for updates on the progress of the plant.
Two additional phases were disclosed in a 2017 announcement, which included heavy duty and speciality tire facilities.
Phase 2 will include the investment of €125 million for an additional 2 million units per year of capacity.
In phase 3, the company is planning to set up an €18-millikon rubber processing facility.
In a 30 Jan statement Guizhou Tyre said its year-on-year net profit rose to €14.6 million in 2018, compared with €29 million net loss the year before.
“The company has effectively adjusted its product portfolio and regional sales proportion, significantly raised tire sales volume and value and upped profit margin,” said the announcement.