Jiangsu General: May start for Cambodia plant

Chinese tyre maker Jiangsu General Science Technology intends to open its new plant in Cambodia during the first half of this year. The General Tire Technology (Cambodia) Co., Ltd. facility now being set up in the Sihanoukville Special Economic Zone is expected to enter production in May with a capacity to manufacture 5 million semi-steel radial tyres and 900,000 all-steel radial tyres. Jiangsu General is investing 1,906.58 million yuan (£229.0 million) in the project, a figure that includes a construction investment of 1,639.2 million yuan (£196.9 million).

In August, the company announced plans to offer non-public shares worth up to 1.018 billion yuan (£122.3 million) in total to finance the factory project and to provide supplementary working capital. Jiangsu General noted that it would use 800 million yuan (£96.1 million) of raised funds for the factory project; the remainder is being used as supplementary working capital that will help optimise the company’s asset-liability structure, reduce financial expenses and improve profitability.

After the completion of all projects in Cambodia, the company estimates that its annual average operating income (excluding tax) will be 2.21 billion yuan (£264.4 million) and total annual profit 250 million yuan (£30.0 million). Jiangsu General anticipates an EBITDA margin of 14.36 per cent.