Green light for new tire project in China

Lianyungang, China – Jiangsu Chengtai Vehicle’s new two-wheeler and speciality tire project in Lianyungang, Jiangsu passed environmental regulatory approval in October.

Located at the city’s Zhewang Coastal Industrial Zone, the project covers 63,200 square metre total area and has €132 million (1.05 billion yuan) investment earmarked. A contract for the project was signed in April.

Its 6.6 million unit per year planned capacity includes 3.2 million unit per year half-steel motorcycle tires, 600,000 unit per year golf cart tires, 200,000 unit per year all-terrain vehicle tires, 1 million unit per year snowmobile tires and 1.6 million unit per year tubes.

The project will create 150 new jobs and is expected to bring in €17 million annual total profit or €13 million profit after tax when in operation, said its environmental filing. Construction of the plant is slated to take a year.

Jiangsu Chengtai is a newly set up subsidiary of Qingdao Chengtai Vehicle, a maker of speciality tires and vehicles since 2003.