WUXI, China — China's Jiangsu General Science Technology Co. Ltd. (JGST) is increasing the investment budgeted for a truck and bus tire capacity expansion by 20 percent to nearly $230 million.
Wuxi-based JGST — represented in North America by Statewide Tires Inc. of West Covina, Calif. — disclosed plans in August to spend $175 million to add 1.2 million units of annual truck and bus tire capacity at its headquarters plant.
More than a third of the additional investment will be pumped into the plant's information technology and automated logistics system, JGST said in the recent filing.
The remainder has been earmarked for machinery upgrades in processes for mixing, tire building, curing and testing as well as waste-treatment facilities, the company added.
JGST also is enhancing its partnerships with research institutes and universities, to bridge the gap between its current research abilities and talent reserve and that required by the new smart plant.
The increased investment is expected to create 770 jobs and generate $310 million in sales when in full operation, the company said.
Construction of the project is scheduled to take 15 months. A more detailed timeline is yet to be disclosed.
The company also is in the process of adding passenger tires to its portfolio.