Sailun boosting Vietnam production to meet demand in Europe & North America
During today’s extraordinary shareholders meeting, its first of 2021, Sailun Group confirmed plans for the third phase of expansion at its wholly-owned Sailun (Vietnam) Co., Ltd. subsidiary. Over a three-year period, the company will invest 3.01 billion yuan (£340.1 million) to equip the site with the capacities to produce 3 million car and light commercial vehicle tyres, one million truck and bus radials, and 50,000 tons of off-the-road tyres per annum.
Sailun is expanding its capacities in Vietnam in order to “further enhance” the group’s international competitiveness and to grow in international markets, and the project’s feasibility study states that Europe and North America will be the primary target markets for the Tây Ninh Province site’s increased output. The company favours Vietnam as a production site due to the country’s close proximity to natural rubber plantations, its demographics, its more favourable (compared with China) bilateral and multilateral trade arrangements, as well as rate of economic growth.
The project includes the construction of mixing facilities, production halls, a power substation and warehousing. According to Sailun Group, it expects to create around 1,500 jobs through this project.
Sailun inaugurated the facility northwest of Ho Chi Minh City in 2013. Current annual capacities stand at ten million car and light commercial tyres, 1.4 million radial truck and bus tyres and 35,000 tons of OTR tyres.