Guizhou, Guilin – Guizhou Tyre broke ground on two new tire production plants in China and Vietnam, on 14 and 15 Dec respectively.
Being constructed at its new headquarters in Guizhou, Guiyang, the Chinese facility will have capacity to produce 3 million truck and bus tires annually.
Spanning an area of165,000 sqm, the plant will mark the final phase of the company’s relocation programme.
With a €277 million (2.16 billion yuan) investment plan, the new factory is expected to generate €384 million of annual sales when in operation, said the company.
The relocation project also includes the construction of a new facility to produce nearly 5,000 "giant engineering tires" per year, the company told ERJ.
The tires, of grade 27.00R49, each weighs 1,487kg, according to the company. The project has a budget of €37 million and is slated to come on stream in January 2021.
First announced in 2017, the Vietnam unit will have the capacity to produce1.2 million units of truck and bus tires per year and is situated in the Long Giang Industrial Park in Tien Giang province, adjacent to Ho Chi Minh City.
The project has €192 million ($214 million) of investment earmarked and is predicted to generate sales of €135 million per year. All tires produced at the plant will be sold to overseas markets, said the company.