Liaoning, China – Sailun plans to build new facilities with 3 million units annual capacity for truck and bus radial (TBR) tires at its existing site in Liaoning, Shenyang province.
The proposed facilities has €259 million (2 billion yuan) investment earmarked, Sailun announced on 28 February. The company currently is able to manufacture 3 million units TBR annually at the site.
The new project will cover 114,000 sqm and takes two years to complete, said the announcement. It is set to bring in €39 million annual net profit on €311 million revenue when fully on-stream.
The facilities will run at a 70% utilisation rate over the first year and at a 100% rate over the second year.
At least 30% of the unit's production is targeted for overseas markets such as South America, Africa and other Asian areas, said the announcement.
Sailun expects TBR demand from Brazil, Columbia, Thailand, Malaysia and Vietnam to total 1 million units in 2020.
The company also announced in January that its unaudited 2019 annual sales is pegged at €2 billion, up 10% from 2018. Net profit jumps 80% year on year to €155 million.
Falling feedstock prices and the Vietnam plant’s "stellar performance" contributed to the raised profitability, said the announcement.