Guizhou Tyre delays start up of major OTR tire project

Guiyang, China – Guizhou Tyre expects to complete a major off-the-road (OTR) radial tire project nine months behind schedule, due to “large variations in product specifications,” the Chinese tire maker announced 19?July.

Initially set for completion 30?July?2025, the project to add an annual capacity of 380,000 OTR units (ERJ report) is now expected to be completed 31?March?2026, said Guizhou Tyre Co.

In a Shenzhen Stock Exchange filing, Guizhou said the large variation in product specifications – most of which are new – had lengthened development, testing and equipment commissioning times.

The project, budgeted at Yuan1.587?billion (€190?million), is being funded from proceeds of the company’s 2022 convertible bond issue.

As of 30?June?2025, Guizhou said it had invested Yuan1.234?billion, or 78% of the total.

The tire maker said it redirected the Yuan1.6?billion originally allocated to a planned 3?million unit/year high performance all-steel radial tire manufacturing project to the OTR plant.

The TBR project was scrapped due to “increased market supply” in 2023. (ERJ report)

Remaining funds will be spent in phases on equipment procurement, installation and final engineering work.