By Patrick Raleigh, Crain News Service
HEFEI, China (March 12, 2015) — A joint venture involving Guangzhou Fengli Tire & Rubber Co. Ltd., and Chinese vehicle maker China Anhui Jianghuai Automobile Co. Ltd. (JAC) has broken ground in Hefei, Anhui Province, on a plant to make all-steel radial truck tires.
The partners are investing $325 million in the plant, which has a designated annual capacity of 2 million tires. Guangzhou Fengli is itself a joint venture involving South China Tire & Rubber Co. Ltd. (SCTR) — producer of the Wanli and Sunny brands — and Guangzhou International Group Co. Ltd.
The venture, Hefei Wanli Tire Co., will be located on a 3.66 million sq.-ft. site at JAC's industrial park in Hefei for vehicle components.
Construction is scheduled to begin in June and be completed by year-end 2016, the joint venture partners said.
The project combines the resources of two of China's major players along the automotive industrial chain and will generate scale effect to its fullest extent, said Fengli's website.
JAC describes itself as a “comprehensive automobile company with the most complete range of self-owned branded products in China.” Its product range covers cars, vans, SUVs, light and medium-duty trucks, multi-functional commercial vehicles and buses and vehicle components.
Last year it initiated sales efforts in the U.S. with its iEV electric passenger vehicle.
Guangzhou Fengli has a second expansion project under way at its plant in Conghua, Guangdon Province, to install annual capacity for 10 million eco-friendly, high-performance tires.
The project is budgeted at $328 million and scheduled to be completed by year-end 2015.
The company produced its 100 millionth tire under the Wanli brand in September 2014.
This report appeared on the website of European Rubber Journal, a UK-based sister publication of Tire Business.