Qingdao, China – Sailun estimates its net profit in H1 2019 reached €65 million (500 million yuan), up 57% from H1 2018.
Net profit less non-recurring items jumped 62% year-on-year to €62 million, said the company’s announcement on 16 July.
“Our Vietnam plant has been running at high utilisation rate,” said the announcement, “Sales volume shot up during the period, and profitability also improved significantly.”
A decline in feedstock prices contributed to the rise in profit margin as well, according to the announcement.
Located near Ho Chi Minh City, Sailun’s Vietnam plant has been operating since 2013 and currently has an annual capacity to produce 10 million units of passenger car tires, 1.2 million units of truck & bus tires and 35,000 units of off-the-road tires.
An additional 15,000 unit annual capacity for off-the-road tire is still in the pipeline, the company told ERJ.
The plant registered €67 million net profit last year, representing 77% of Sailun’s total.
A new 2.4-million-unit truck & bus tire plant, under a joint venture between Sailun and Cooper, broke ground at the same site in March, the company told ERJ.