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November 07, 2018 12:00 AM

Green light for new tire project in China

Jane Ho, Tire Business correspondent
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    LIANYUNGANG, China — Jiangsu Chengtai Vehicle, a newly established company, is planning to build a motorcycle and specialty tire plant in northern Jiangsu Province valued at $152 million.

    The company's proposed project, located in Lianyungang's Zhewang Coastal Industrial Zone, passed environmental regulatory approval in October.

    The company, a unit of Qingdao Chengtai Vehicle Co. Ltd., said the proposed factory would have an annual capacity of 6.6 million units — 3.2 million motorcycle tires, 600,000 golf cart tires, 200,000 all-terrain vehicle tires, 1 million snowmobile tires and 1.6 million tubes.

    The factory will span 680,000 square feet and represents 150 jobs. It is expected to generate about $16 million in after-tax profit when in operation, according to the environmental filing.

    Construction of the plant is slated to take a year.

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