China’s Guizhou Tyre, listed on the Shenzhen Stock Exchange of China (SZSE) as 000589, plans to invest $227.8 million in a project in the Mekong Delta province of Tien Giang.
In a filing with the SZSE last week, the firm’s Vietnam subsidiary Advance Tyre (Vietnam) Co., Ltd. said it will implement the project after approval from relevant authorities.
The new facility would have an annual output of six million semi-steel radial tires, which would be shipped to overseas markets.
Guizhou Tyre said the plant would become operational at 60% capacity after 12 months of construction and reach full capacity in another four years.
The investment expands the Chinese firm’s Vietnam operations. In 2019, it had invested $214 million in a tyre factory, also in Tien Giang province, with an annual capacity of 1.2 million all steel radial truck/bus tires (TBR). Work is underway on this factory’s second phase, which will up capacity to 950,000 units per year.
In September 2023, Shandong Haohua Tire, another Chinese tiremaker, received an investment certificate to build a $500 million factory in the southern province of Binh Phuoc, home to large rubber plantations. The firm is set to build a factory called Haohua covering 43 hectares at Minh Hung Sikico Industrial Park.
The plant’s annual output will include 2.4 million packs of steel radial tires and 12 million packs of half steel radial tires for trucks and other vehicles, with total output worth an estimated $770 million. The firm expects to employ 1,600 locals and 200 expatriates.