QINGDAO, China (Dec. 11, 2015) — Sailun Jinyu Group Co. Ltd. plans to build a second factory in Vietnam in the next few years, investing up to $200 million in a plant for radial truck and OTR tires, according to information disclosed at the firm's recent shareholders' meeting.
The project — for a plant for 1.2 million truck/bus tires and 30,000 metric tons of OTR tires — will be implemented by the company's Sailun (Vietnam) Co. Ltd., subsidiary in Gò Dầu, Tây Ninh province, Sailun said.
Construction of the new project is scheduled to take three years, and the new facilities are expected to generate $23 million annual profit on $250 million revenue when in operation.
The project will be able to tap into Vietnam's local natural rubber resources, and the products are planned for Vietnam as well as overseas markets such as South America, North America and Europe with protective trade policies against Chinese tires, said the announcement.
Sailun Jinyu also expects that building the plant on its existing site will help cut production costs and allow to take advantage of Vietnam's local tax incentives.
Sailun opened its first plant in Vietnam, for radial car, truck and OTR tires, in November 2014. The plant, on a 145-acre site in the Phuoc Dong Industrial Park in Tay Ninh Province, was rated at 7.8 million tires a year in the first phase.
Story based in part on reporting by Jane Ho, a correspondent for European Rubber Journal, a sister publication of Tire Business.