On June 29, Vietnam’s Danang Rubber Co. and the Vietnam National Chemical Group (Vinachem) held the inauguration ceremony for its, and the country’s, first truck tire radial factory. 

The new plant is located within the Lien Chieu Industrial Zone in Da Nang City, and covers an area of 106,632 square meters. It was built with a total investment of VND 2,992 billion (£92.1 million), including equipment costs of VND 1,663 billion, and has a 600,000 tire annual capacity. The Vietnamese tiremaker says plant equipment was imported from Italy, The Netherlands and Germany.

At the inauguration ceremony, Vietnam’s Deputy Prime Minister Nguyen Xuan Phuc congratulated Danang Rubber and Vinachem, and said the companies had grasped the right opportunity by constructing a factory that will supply both the domestic and export markets. Tires manufactured in the new plant will be marketed under the DRC brand name.

The factory’s opening has created 1,000 new jobs in the local area. And according to Danang Rubber Co., when the plant reaches its full capacity, the company’s revenues will exceed VND 4 trillion (£123.1 million). At present, Danang Rubber holds a 25% share of Vietnam’s truck tire market and 15% stake in the national motorcycle tire market.

Danang Rubber is not the only Vietnamese tiremaker engaged in a truck tire radial project. Last year, the Southern Rubber Industry Joint Stock Co., more commonly known as Casumina, started construction work on its new $160 million truck radial factory. This 68,000 square meter plant in Binh Duong Province is scheduled to be completed by the end of this year and will have an initial annual capacity of 350,000 tires. This is expected to rise to one million units by 2017. The plant will increase Casumina’s annual turnover to VND 5 trillion (£153.9 million) and employ 1,200 workers. (Tyres & Accessories)