Sailun set to invest further in Vietnam tire manufacturing operations

Hanoi – Chinese tire group Sailun intends to expand its operations in Vietnam with a potential to invest $200 million (€185 million) in the country “in the near future”.

The pledge was made during a meeting with the Vietnamese deputy prime minister Tran Luu Quang and the chairwoman of Sailun Group Liu Yanhua as well as local Sailun officials on 29 July in Hanoi.

During the meeting, Liu Yanhua highlighted that Sailun has so far invested $1.5 billion in Vietnam, including a production factory in Tay Ninh province, an R&D centre in Ho Chi Minh City, and a joint venture with Cooper Tires in 2019.

The group, she added, is “committed to invest another $200 million in Vietnam in the near future,” according to the government of Veitnam’s social media platforms.

Sailun currently employs 7,000 people in Vietnam and consumes 100% local natural rubber for its products, according to Liu Yan Hua.

Meanwhile, the research and development centre in Ho Chi Minh City is Sailun’s “the largest” R&D centre overseas, she added.

In April, Sailun delayed a planned expansion at its plant in Vietnam, due to issues around logistics and funding for completion of the project.

The Chinese tire maker announced the third phase of the expansion project at the Go Dau factory in Vietnam in January 2021. (ERJ report)

The investment involves the addition of capacity to produce 3 million passenger tires, 1 million truck and bus radial tires and 50,000 tonnes of off-road tires per year.

Initially set for operation by March this year, the project completion timeline has moved by a year to March 2025.

Sailun said the ‘large construction scale of the project’ as well as issues such as Covid, labour-shortages and supply-chain disruption had led to delayed delivery of equipment.

These factors made it difficult to secure funding for the completion of the project within the original schedule, according to the disclosure statement.

The scope of the project remains unchanged to bring total annual production capacity to 13 million passenger car tires, 2.4 million truck & bus tires as well as 85,000 tonnes of off-road tires.