Haohua Tire gains investment certificate for Vietnam plant

Vietnam’s Binh Phuoc Province shares that the chair of its Provincial People’s Committee issued an investment registration certificate to Chinese tyre maker Shandong Haohua Tire on 11 September 2023. As Tyrepress.com reported in July, Haohua intends to invest US$500 million to build a factory in Vietnam capable of producing 12 million semi-steel radial tyres for cars and other light vehicles and 2.4 million all-steel truck radials a year.

“The province is committed to accompanying investors in the process of implementation, will create the most favourable conditions on policy, on investment environment, business within the framework of law so that the project will soon go into operation and achieve the highest efficiency,” states Committee chairwoman Tran Tue Hien.

Ms Tran adds that the Committee has identified construction of Haohua’s tyre plant as “the central project of the province to coordinate and support.” As such, local authorities will “quickly solve the administrative procedures related to the project” and “promptly address” any difficulties that may arise in order to “put the project into operation” on schedule.

Operational from 2025

The plant will be located on a 43-hectare site within the Minh Hung Sikico Industrial Park, some 50 miles north of Ho Chi Minh City. Construction work will commence once investment preparation procedures are complete, most likely in the first quarter of 2024. Haohua aims to bring the plant into operation in the third quarter of 2025 and when operational, the factory will employ approximately 1,800 people and is expected to generate an annual output value of $770 million.

As of 2019, Shandong Haohua Tire claimed global PCR sales of 40 million tyres and TBR sales of 4.6 million tyres, generating sales of RMB 10 billion (£1.1 billion, US$1.4 billion).