Haohua prepares for Vietnam tire factory inauguration

Binh Phuoc, Vietnam – Chinese tire maker Haohua is preparing to inaugurate its $500 million (€465 million) manufacturing facility in Binh Phuoc, southeastern Vietnam.

Provincial leaders visited the factory on 9 Dec to inspect the preparation for the event, reported the website of the local government of Binh Phuoc 10 Dec.

Constructed at the Sikico Industrial Park, Minh Hung, the factory is set for official opening before the yearend, the report said without giving an exact date.

As previously reported by ERJ, the facility is scheduled for full ramp-up by the third quarter of 2025.

At full capacity, the facility can produce 12 million units of semi-steel radial passenger car tires and 2.4 million units of all-steel commercial tires.

The annual output value of the project is expected to reach $770 million, with the potential to create 1,600 local jobs.

According to the local authorities, once fully operational, the facility will consume over 120 kilotonnes per annum (ktpa) of natural and synthetic rubbers.

A large bulk of the rubber – 96.5ktpa – will be supplied from Vietnam while the remainder will be imported from China.

Shandong Haohua Tyre Group operates three plants in China with an overall nameplate capacity of 5 million truck and bus tires and 20 million passenger car tires each year.

With total sales of $909 million in 2022, the tire maker is ranked 10th among Chinese manufacturers.

Furthermore, the company is advancing an ‘export-orientated’ substantial tire project in Hambantota, Sri Lanka.

Launched in 2020, the plant is currently undergoing phase II of construction according to Chinese media.

The facility will be ultimately having a capacity to produce 3 million truck and bus tires and 17 million passenger car tires, Haohua told ERJ in 2020.

Phase I of the project involved an annual capacity to produce 1.5 million units of truck/bus tire and 7.5 million units of passenger car tires.