Jiangsu General planning to run five tyre factories

Recently, Jiangsu General Science and Technology (Jiangsu General) has revealed a strategic plan to reach five production bases in the next 10 years. Currently, the company has two factories in China and Thailand and has more recently launched projects in Cambodia.

Jiangsu General said that the Thailand plant had entered the full production stage, overcoming unfavourable factors such as the pandemic and shipping costs to do so. According to the company’s annual report information, the Jiangsu General Thailand factory operating entity, General Rubber (Thailand), had a net profit of 136 million yuan (about £16.88 million, 19.65 million euros) in the first half of the year. Meanwhile, Jiangsu General believes that the Cambodian factory can improve the company’s international competitiveness and seize opportunities in the global replacement market.

Regarding the US anti-dumping investigation on passenger car tyres and light truck tyres produced in Thailand in 2021, Jiangsu General said that the Thailand plant’s operation would not be significantly affected. The company’s first half report notes: “The additional tariffs will eventually be shared by all the links related to purchasing and sales. At present, the Thailand factory has entered full production, and the company has started the construction of a Cambodian production plant to enhance further the ability to deal with international trade frictions.”

Jiangsu General’s ongoing factory investment plans were shared within the company’s first-half 2022 financial results. From January to June, the tyre maker’s revenue was 2.123 billion yuan (about £264 million; 307 million euros), down 1.71 per cent year-on-year. And its net profit was 18.19 million yuan (£2.26 million, 2.63 million euros), down 44.42 per cent.