General Science reports 400% increase in first-half profits

Wuxi, China – Jiangsu General Technology Co. has reported strong growth in the first half of 2024, helped by increasing demand for low-cost tires in Europe and the US.

Profits for the first six months of the year increased 393% year-on-year to Yuan287 million (€36 million) on 37% higher sales of Yuan3.0 billion, the Chinese tire group reported 30 Aug.

Commenting on the results and business environment, General Science said the global tire industry has been operating “smoothly overall” since the start of the year.

While acknowledging “the disturbance of international trade barriers” as well as the increase in raw material and shipping costs, the group said high demand from European and American consumers for ‘cost-effective’ tires buoyed its results.

The tire maker said it is now ‘seizing’ the opportunities provided by its domestic and international layout to increase growth.

Therefore, the group said, it is pursuing major projects to enhance production and profitability.

At the end of August, General Science completed an expansion project at its production facility in Sihanoukville, Cambodia, only four months after starting production at the greenfield facility. (ERJ report)

The group is also currently carrying out a Yuan1.9 billion expansion programme in Thailand to add capacity for 6 million units of PCR tires and 500,000 truck and bus radial (TBR) tires.

Earlier in June, the group said it was changing the scope of the project to produce 10 million units of PCR tires and dropping the TBR unit. (ERJ report)

In Wuxi, General Science plans to upgrade its tire manufacturing plant to include the production of PCR tires. (ERJ report)

The Yuan881 million project, it said, adds capacity to produce 6 million units per year of PCR, in addition to the existing 10 million units per year of TBR tires.