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January 22, 2019 01:00 AM

Giti to relocate Hefei tire plant by 2021

Jane Ho, China correspondent
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    HEFEI, China — Giti Tire Group is planning to relocate its passenger and truck tire plant in Hefei, Anhui Province, in alignment with a "greener Yangtze River economic belt" initiative.

    The Hefei plant, opened by Singapore-headquartered Giti in 1993, produces car, light truck and medium truck tires. Capacity is listed as 23 million units annually.

    According to a notice dated Dec. 29 on the provincial government's website, Giti is pushing forward the relocation plan to improve its environmental impact.

    Earlier, local newspaper Hefei Evening News said the plant's odor emission had been causing "grievances" among nearby residents.

    Giti has spent more than $3 million since 2017 to address the odor emission problem at the plant. The company also has been running at low utilization rates of 40 percent for truck and bus tires and 20 percent for passenger car tires, the government notice said.

    The greener Yangtze River economic belt initiative was launched by China's central government in 2016.

    The new plant's location will be determined by year-end 2019 and regulatory approvals and construction plan will be in place by 2020, the notice said. The company will break ground on the new plant in 2021 and start facility relocation by 2023.

    The company declined to give more details, such as the capacity or the location of the plant.

    The group also has five other plants in China as well as a joint-venture plant in Indonesia and one in the U.S.

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