Jiangsu General’s Thailand plant starts second phase

Recently, Jiangsu General announced that it will invest 1.884 billion yuan (approximately £210 million; €240 million) to launch the second phase of the Chinese tyremaker’s Thailand factory. The expansion will add 500,000 all-steel radial tyres and 6 million semi-steel radial tyres to the Thailand production base. It is worth noting that the tyre manufacturer only disclosed that the project’s construction period is 24 months but did not announce the planned start and end time.

In its 2023 semi-annual report, Jiangsu General revealed that the existing production capacity of the Thailand factory is 1.3 million all-steel radial tyres and 6 million semi-steel radial tyres per year. During the reporting period, the net profit of the Thailand factory was 196 million yuan. Jiangsu General’s net profit during the same period was 58.082 million yuan. In other words, according to Tyrepress China except for the Thailand factory, Jiangsu General’s multiple holding and joint-stock companies were in the red in the first six months of 2023.

The same report shows that tyre products from Thailand factories were in short supply in 2023. The tyre manufacturer said that “with high-quality products and services, orders (from the Thailand factory) continue to exceed existing production capacity”. Similarly, “The orders on hand in the second quarter exceeded the existing production capacity.” And that’s why “the company has taken measures such as optimising production planning and scheduling and tried to explore internally to meet customer needs to the greatest extent”.

After completing this expansion, the tyre production capacity of Jiangsu General’s Thailand plant is expected to reach 13.5 million units.