Sailun unveils €250m expansion project at Indonesian tire plant

Central Java, Indonesia – Sailun Group has announced a Yuan2.1 billion (€250 million) expansion project at its factory in Demak, Central Java, as part of a move to optimise and strengthen its overseas footprint.

In a stock exchange filing 27 Jan, Sailun said the investment will double passenger car tire production at the facility to 6 million units per year and increase truck & bus all-steel radial tire capacity from 600,000 units to 750,000 units per year.

To be completed in 21 months, the project will also see the capacity for off-road tires adjusted from 37,000 units per year to 10,000 units, while adding a new production line for 1.5 million sets of inner tubes and liner belts.

The Chinese tire group officially started production at the Indonesian factory in September last year, celebrating ‘full-category product launch’ at the plant earlier this month. (ERJ report)

The group said the move to expand the plant followed an ‘in-depth’ analysis of international market demand.

The facility will supply to the local Indonesian market and neighbouring regions.