Triangle investing in Russian tyre production plant

Various news sources are reporting that leading Chinese domestic tyre manufacturer Triangle Tire is taking its international operations to the next level with the investment of some 250 million euros in a new tyre factory in the Western Russian Republic of Bashkortostan. The unconfirmed reports suggest that the new plant will be built in one of two areas near Sterlitamak and that the government is offering Triangle a subsidy that will save the company as much as 10 years’ property tax.

In addition the Republic of Bashkortostan is expected to foot the bill for related public infrastructure costs. The reports further suggest that the factory itself will have an annual output of 4 million units. No-one at Triangle has yet confirmed the reports. There hasn’t yet been any confirmation of what products will be constructed at the new plant or indeed what the intention is for the factory’s output.

Triangle recently bought a 10 per cent share of its UK importer TYM International as well as similar agreements with Australia’s Consolidated Tyre Company and Russia’s SP LLC-Tyre Service Provider. Some observers see the moves as part of a longer term global expansion strategy being adopted by the Chinese tyre manufacturer.