Sailun Group to build €2bn tire factory in China

Shanghai, China – Chinese tire maker Sailun Group has announced plans to build a major tire manufacturing facility in Dongjiakou, some 40km south of Qingdao city.

In a filing with the Shanghai Stock Exchange (SSE) 27 June, the tire maker said the Yuan15.1 billion (€2.1 billion) project will be constructed in five phases, each taking 12 months. 

Once fully on-stream, the project aims to manufacture of 20 million sets of high-performance semi-steel radial tires, 10 million sets of high-performance all-steel radial tire and 150,000 tonnes of off-road tires (OTR).

With construction set for November this year, Sailun said the entire project is expected to be completed by late 2027. 

The off-highway tire project will be based on what Sailun called the first industrial internet "Eco-rubber cloud".

The system, it said, will use a new intelligent production and testing equipment to manufacture high-performance green tire products to better meet the needs of domestic and foreign markets.

The investment still needs to go to the relevant government departments for project filing, environmental impact assessment approval, and construction planning approval, according to Sailun.

Furthermore, factors such as international political environment, raw material price fluctuations, domestic and foreign market demand and the economic situation may influence the final investment decision.