The Sailun Jinyu Group’s wholly-owned Vietnamese subsidiary, Sailun (Vietnam) Co., Ltd, is investing up to $200 million in all-steel belted tire and OTR production.
Approved by the board of directors on Dec. 8, the investment will help Sailun become more globally competitive and increase its market share for all steel and OTR tires, Tyres and Accessories reported.
Vietnam was chosen to host the project due to local tax incentives and the project will utilize the company’s existing factory site in Vietnam to keep costs at a minimum, Saliun said.
Construction will take three years and, upon completion, the plant will have an annual capacity to produce 1.2 million all-steel radial tires and 30,000 tons of OTR tires, according to reports.