12 Apr 2021
Facility will have the capacity to make 1.2 million units of truck and bus tires per year
Tien Giang, Vietnam – China’s Guizhou Tyre produced the first tire at its Vietnam plant on 1 April and will begin product testing and certification processes shortly, said the company.
The plant is situated in the Long Giang Industrial Park in Tien Giang province, adjacent to Ho Chi Minh City. It will have the capacity to make 1.2 million units of truck and bus tires per year.
The project was first announced in 2017 and broke ground in December 2019. Construction was delayed until March 2020 by the coronavirus pandemic, the company told ERJ.
The plant has €192 million ($214 million) of investment earmarked and is predicted to generate annual sales of €135 million. All tires produced at the plant will be sold to overseas markets.
According to Guizhou Tyre’s estimates, its net profit less non-recurring items for 2020 ranges from €62 million to €77 million (481 million yuan to 596 million yuan), compared with €19 million for 2019.
Lower feedstock prices were the main contributor for raised profit margin, said the company.
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