WEIFANG, China — Sailun Tire Group has commissioned production at a refurbished radial tire plant in Weifang, Shandong Province, that previously belonged to Shandong Anchi Tyres Co. Ltd.
Sailun acquired the 17-year-old facility in January and budged $110 million to upgrade it to a smart factory. It completed the project two months ahead of schedule.
Located in the Weifang's Zhucheng Economic Development Zone, the plant is rated at 6 million passenger and 1.5 million truck/bus tires a year, Sailun said.
Sailun paid $31 million in January to acquire Anchi Tyres, which had been declared bankrupt.
The refurbished plant will be staffed by 1,380 workers, and is expected to generate $21 million in annual net profit on $300 million in sales when in full operation, the company said.
Passenger tires made at the plant will be sold in China's domestic market, while truck and bus tires will be targeted at export markets in South America (Brazil and Columbia) and Southeast Asia (Thailand, Malaysia and Vietnam), Sailun said.