LIAONING, China — Sailun Group Co. Ltd. plans to double capacity for radial truck and bus tires at its plant in Liaoning to 6 million units a year by 2022, the company disclosed Feb. 28.
Sailun is budgeting $285 million for the project, which will add 1.22 million square feet to the existing Liaoning facilities.
Sailun said at about a third of expanded production is targeted for overseas markets such as South America, Africa and other Asian areas. The tire maker said it expects truck/bus tire demand from Brazil, Columbia, Thailand, Malaysia and Vietnam to total 1 million units in 2020.
Once fully on stream, the expansion is projected to generate in $43 million in annual net profits on $340 million in revenue.
The facilities will run at a 70% utilization rate over the first year and at a 100% rate over the second year.
The company, the No. 18 tire maker worldwide, also announced in January the completion of an expansion of capacity for passenger tires at its Dongying, China, factory, which will boost that plant's annual capacity to 27 million units a year.