Sailun to build all-steel, OTR tyre plant in Vietnam
The Sailun Jinyu Group has informed the Shanghai Stock Exchange about plans for its wholly-owned Vietnamese subsidiary, Sailun (Vietnam) Co., Ltd, to invest up to US$200 million in all-steel belted tyre and off-highway tyre production. At a meeting held on 8 December, the Sailun Jinyu Board of Directors unanimously approved the project.
A Chinese-language document published by Sailun yesterday indicates that the project will utilise the company’s existing factory site in Vietnam in order to keep investment costs to a minimum, and it notes that Vietnam was also chosen to host the project due to its advantageous local tax incentives. Through its investment, Sailun aims to become more globally competitive in terms of products and increase its market share for all-steel and off-highway tyres.
According to Xinhua News Agency, construction work will take three years and, upon completion, the plant will have an annual capacity to produce 1.2 million all-steel radial tyres and 30,000 tonnes of OTR tyres.
Sailun’s announcement follows the recent news that Kenda Rubber has received an investment license for setting up a second tyre factory in Vietnam. The Taiwanese tyre maker will also invest up to $200 million in this project.