Sailun ups Cambodia expansion to 12 million tyres

Following on from an October 2023 announcement that it will extend annual passenger and light commercial vehicle tyre capacity in Cambodia by 6 million pieces, Sailun Group has approved additional investment in its plant. It will invest a further RMB 773.69 million (£85.05 million) to expand the capacity expansion project from 6 million to 12 million tyres a year. In total, Sailun is investing RMB 2.25 billion (£247.33 million) in its Cart Tire Co. Ltd. project, which will result in a facility capable of making 21 million semi-steel radial tyres a year.

Sailun Group anticipates a construction period of 16 months for the project and names North America as the primary beneficiary of this added capacity, but the company also intends to export output to “other overseas markets.” Sailun expects the project to achieve an average annual operating income of RMB 3.23 billion (£355.05 million) and average annual net profit of RMB 700.52 million (£77.00 million).