Guiyang, China – Guizhou Tyre is to raise its annual capacity for solid tires at its existing site in Guiyang city by 168,000 units or 8,000 tonnes, according to the project’s environmental impact assessment report issued in September.
The company will pump €3 million (24 million yuan) into the expansion, which is slated to start construction in November 2021 and begin operation in May 2022.
Guizhou Tyre’s production of solid tires in 2021 is pegged at 500,000 units, but the demand is predicted to arrive at 580,000 units, said the report.
The company’s two largest OE clients, China’s leading forklift makers Anhui Heli and Hangcha, are expected to double their combined production by 2025, said the report.
This will translates into 380,000 unit supply shortage each year for Guizhou Tyre by that time, it added.
The company is also planning a €300 million expansion at the site, which will be able to manufacture 3 million units of high performance truck and bus tires each year, said an earlier announcement by Guizhou Tyre.
*Updated with re-translation of tire-type to solid tires, rather than 'airless' tires as in the original report