QINGDAO, China — Sailun Jinyu Group Co. Ltd. is planning to increase its investment in a truck and OTR tire plant under construction in Vietnam by more than $140 million, according to a company filing on the Shanghai Stock Exchange.
Sailun Jinyu disclosed plans to build the plant — rated at 1.2 million truck and bus tire and 30,000 OTR tires annually — in late 2015. The investment at that time was given as $200 million.
Sailun Jinyu did not provide a status update on the plant, which the company said in 2015 would take three years to build and commission.
Taking the new investment into account, the Vietnamese company — Sailun (Vietnam) Co. Ltd., subsidiary in Gò D?u, Tây Ninh province — will have registered capital of $220 million.
The added investment is being funded by the company's private placement in November, raising $195 million capital.
The rest of the funds will be used to supplement cash flow, the firm's filing stated.