Tianjin, China – Tianjin-based rubber machinery maker TST has signed a contact to supply tire production equipment to China’s Guizhou Tyre and its subsidiary in Vietnam, the company said in a statement 31 Dec 2019.
TST will deliver single stage tire-building machines for heavy-duty vehicle tires to the Chinese tire maker during the second and fourth quarters of 2020, the statement added.
The contact with Guizhou Tyre is priced at €18.5 million (142 million yuan), while the contract with subsidiary Advance Tyre (Vietnam) is valued at €9 million ($10 million).
Advance Tyre was set up in March 2019 in Long Jiang Industrial Park in Tien Giang province with €39 million registered capital.
The Vietnam plant broke ground in December and will have capacity to produce 1.2 million truck & bus tires annually.
In the same month, Guizhou Tyre also started building a new plant at its headquarters in Guizhou, Guiyang, with the annual capacity to produce 3 million units of truck & bus tires.
The contacts are worth 47% of TST’s total revenue in 2018, the company statement added.