Kumho Tire Co. will move all of its factories in Nanjing, China, following a government mandate in 2011 that said all factories in the city must be moved to the outskirts of to improve residential areas, according to the Korea JoongAng Daily.

Kumho currently operates two plants in Nanjing – one that produces passenger car tires and another truck and bus radial tire plant. The new factory, located in an economic development zone in Pukou, a district in Nanjing, will combine the two plants will be combined into a single location in order to make production more efficient, according to the report.

Kumho expects that the new facility will make it more competitive in the global tire market.

According to media reports, Kumho will break ground on the site of the new factory on Jan. 22, 2015 and open the new factory next year.