Guizhou Tyre Vietnam plant officially put into operation

Guizhou Tyre Vietnam plant’s first-phase project has officially begun operation with an annual output of 1.2 million all-steel radial tyres. This equates to between 2500 and 2800 units and the products are mainly sold to the United States, Europe and other regions that have implemented anti-dumping and anti-subsidy investigations on Chinese tyres or imposed special tariffs. The tyre maker said that the first-phase project’s production and sales are still in the ramp-up stage.

The Guizhou Tyre Vietnam factory is planned to be constructed in three phases. The first phase involves 1.2 million all-steel radial tyres, and the completion time was delayed due to the pandemic’s impact on Vietnam.

The second phase’s planned annual production capacity is 950,000 tyres, including 800,000 truck tyres and 50,000 OTR tyres. At present, Guizhou Tyre is going through the investment permit procedures for the construction of the Vietnam factory’s second phase. Guizhou Tyre said that most of the second-phase project needs had been considered during the first-phase construction. Therefore, the second phase’s construction period will be significantly shortened. The third phase project is still in the planning phase.

Guizhou Tire said that Vietnam’s upstream industrial chain is incomplete, and most raw materials used to manufacture tyres need to be imported except natural rubber. However, compared with domestic Chinese factories, Vietnamese factories have advantages in terms of natural rubber costs and labour costs.