Prinx Chengshan halts major tire project due to 'economic situation'

Shandong, China – Prinx Chengshan is suspending a project to build its second domestic tire production factory in Anhui, Hefei, due to the economic slowdown in China and globally.

The decision, said Prinx, was based on “the forecast and analysis of the domestic and international economic situation and the company’s capacity utilisation rate.”

The group, therefore, decided "to suspend the implementation of the project of the tire production base in Anhui,” it said in an annual results statement issued 31 March.

The Rongcheng, Shandong-based tire maker unveiled the project in late 2020, subsequently establishing Anhui Prinx Chengshan Tire Co. with Yuan378 million (€50 million) capital.

In August 2021, Prinx said it was adjusting the shareholding structure of the facility, bringing on board Hefei Dongcheng Industrial Investment Co. Ltd with a 49% stake and raising its capital.

At the time, the tire maker said the capital would increase to Yuan1 billion, with Prinx contributing Yuan510 million.

In its first phase, the project was to produce 800,000 sets of all-steel truck & bus radial tires and 5 million sets of semi-steel radial tires.

The planned production facilty was scheduled for start-up in either the final quarter of 2022 or the first quarter of 2023.