JINING, China — Hixih Rubber Industry Group is planning to add annual capacity for 12 million passenger tires and 2 million truck/bus tires at its Shenzhou Tyre and Tongli Tire Co Ltd. subsidiaries in Jining, Shandong, pending regulatory approval.
The projects are budgeted at $690 million and include the construction of new production areas totaling more than 8 million square feet at the two subsidiary companies.
The car tire expansion at the Shenhzhen Tire facilities represent an investment of $410 million and a physical expansion of 5 million square feet.
According to the project's environmental filing, phase one of the car tire project, comprising half the capacity expansion, is scheduled to come on stream by October 2018; phase two will take 17 months thereafter.
When in full operation, it'll create 2,000 jobs and generate $10 million in annual profits on $110 million in sales.
The truck/bus tire project, budgeted at $280 million, will double the Tongli Tire factory's capacity to 4 million units a year, Hixih said. The company anticipates adding production areas covering 3 million square feet and equipping the expansion with state-of-the-art equipment sourced from leading international suppliers.