ZC Rubber breaks ground on plant in Mexico

SALTILLO, Mexico — A group of 250 guests, including several U.S.-based tire dealers and distributors, as well as Mexican and Chinese dignitaries. were on hand on Aug. 6 as Zhongce Rubber Group Co. Ltd. (ZC Rubber) officially broke ground in Saltillo on a new tire manufacturing facility.

The plant, which will represent an investment of more than $500 million, will be situated on nearly 150 acres in the Alianza Industrial Park, located about 150 miles from the U.S. border.

Production is expected to begin by the end of 2025, and the plant will have an annual capacity of 13.5 million passenger car radial tires and 50,000 tons of off-the-road products, according to ZC Rubber.

The company said the plant, its third outside of China, will benefit both the North American and Latin American markets, "providing customers with more effecient and high quality products and services."

ZC Rubber also has a plant in Rayong, Thailand, which opened in 2015, and recently disclosed plans to build a factory in Indonesia.

The Hangzhou, China-based company said the Mexican factory will combine a modern design with digital production, "employing next-generation information technology to create a highly automated, flexible, and energy-efficient large-scale tire production base."

The plant will include a North American warehouse center that will enhance logistics and service. ZC Rubber said the warehouse will serve as a key hub, "ensuring that ZC Rubber can deliver products more swiftly and reliably to customers throughout the Americas, further strengthening the company's supply chain and customer service."

Among the dignitaries to attend the groundbreaking were Wei Dong, counselor of the Chinese Embassy in Mexico; Blas José Flores González, chief of staff of the state government; Luis Eduardo Olivares Martinez, minister of economy of Coahuila; Mario Mata Quintero, representative of the Saltillo mayor; and Haoyu Shen and Zhiqiang Jiang, vice presidents of ZC Rubber Group.

"We believe that with the operation of the new factory, ZC Rubber's competitiveness in the Americas market will be further enhanced," Shen said. "We look forward to working closely with our partners to embrace the vast prospects of the Americas market and achieve mutual benefit and win-win results."

ZC Rubber, the world's No. 9 tire maker, reported $4.18 billion in sales in fiscal 2022. It has stated on several occasions in the past that its goal is to become the world's No. 5 tire maker within the decade.

The company, which goes to market with the Arisun, Chaoyang, Goodride, Trazano and Westlake brands, operates nine factories in China.

ZC Rubber becomes the second Chinese tire maker to select Mexico for a manufacturing base.

Sailun Group Co. Ltd. signed a joint-venture agreement in December with Mexico's TD International Holding S.A.P.I. de C.V. for the construction of a car tire plant in León, in the central Mexican state of Guanajuato.

These companies will join seven other international tire makers with manufacturing in Mexico: Bridgestone Corp. (two plants); Continental A.G.; Goodyear (two plants); Group Michelin; J.K. Tornel; and Pirelli & C. S.p.a.