Aeolus approves 610 million yuan investment plan

On its 10 November board meeting, Aeolus approved a project with a total investment of 610 million yuan (about 73.12 million pounds, 82.93 million euros) at its manufacturing base in Jiaozuo, China. It is reported that the tyre company plans to increase the annual production capacity of 80,000 tyres through reconstruction, including giant tyres and engineering radial tyres. The construction period is expected to be 18 months.

Aeolus believes that the reconstruction project is conducive to optimising their “product structure”, which aligns with the tyre industry’s market and development. Not long ago, the tyre company’s production base in Jiaozuo rolled off the first 63-inch giant OTR tyre. Therefore, Aeolus is likely to take OTR tyres as a future development strategy and participate actively in this tyre market segment.

It is worth noting that the core products of PTG, which Aeolus manages 100% of the equity, include OTR tyres. In the public information related to the expansion of OTR production capacity, Aeolus did not disclose how to avoid the problem of horizontal competition with PTG and how to achieve product complementarity between the two companies.

Tyrepress noted that Aeolus announced the environmental impact assessment of the reconstruction project on its official website in August 2022. The public information shows that among the 80,000 tyres in the newly added production capacity, 6,000 giant tyres with a size of more than 49 inches are included. Aeolus said the project would utilise the existing production workshop and not involve new land and workshops.

In the August announcement, Aeolus gave a more exact address for the reconstruction project: North of Fengshou Road and East of Jingsan Road in the ​​Zhongzhan District, Jiaozuo City.