Weifang, Shandong – Sailun started up its new radial tire plant in Weifang, Shandong province on 27 June.
Located in the city’s Zhucheng Economic Development Zone, the plant is able to make 6 million units of passenger car tires and 1.5 million units of truck and bus tires each year, said the company.
The facility was formerly owned by bankrupt tire manufacturer Anchi Tyres. Sailun paid €26 million (202 million yuan) to acquire Anchi’s assets in January.
Sailun said it invested €94 million to upgrade the facility into a smart factory. It completed the project two months ahead of schedule.
The new plant has created 1,380 new jobs, and will be able to generate €18 million annual net profit on €256 million sales when in full operation, said the company.
Passenger car tires made at the plant will sell to China’s domestic market, while truck and bus tires will target South America (Brazil and Columbia) and Southeast Asia (Thailand, Malaysia and Vietnam,) said Sailun.