WUXI, China — Jiangsu General Science Technology Co. Ltd. (JGST), reacting to increasing international trade barriers, plans to build a passenger and truck/bus tire plant in Thailand's Rayong Industrial Zone and is committing up to $300 million for the project.
The plant is designed with capacities of 6 million passenger tires and 1 million truck/bus tires annually, the company said.
Construction is slated to take 15 months, and the plant is expected to generate $36 million annual net profit on $320 million in revenue when on full stream upon the third year of its operation.
"China's is under the heaviest anti-dumping and countervailing investigations among global markets," JGST said.
"An overseas plant can effectively bypass international trade barriers on our tire export and buttress the company's further global expansion," the company added.
JGST first proposed building an overseas plant in April, in Cambodia, but has decided to change its location.
Thailand has relatively advanced infrastructure as well as sophisticated upstream and downstream industries.
Among tire makers already manufacturing in Thailand are Bridgestone Corp., Group Michelin, Zhongce Rubber Co. Ltd. and Qingdao Linglong Tire Co. Ltd., JGST said.
Thailand's "domestic political stability" and upward economic development also guarantees the company's sustainability, JGST said.
The country's recent partnerships with China, such as under the "belt and road" initiative "will bring great opportunities," the company added.
This announcement is in addition to $230 million JGST has committed to expanding truck/bus tire capacity at its Wuxi headquarters plant.
JGST — represented in North America by Statewide Tires Inc. of West Covina, Calif. — said the increased investment is expected to add 1.2 million units of annual capacity at the plant, create 770 jobs and generate $310 million in sales when in full operation.
The company also said earlier this year it is planning to set up a U.S. research, sales and international trade office in Georgia.