Mexico plant a “strategic expansion” for Sailun

Sailun Group has confirmed plans to build a joint venture factory in Mexico. In a statement, Sailun Tire Americas describes the decision to establish the plant as a “strategic move” aimed at enhancing Sailun’s production capabilities and streamlining the supply chain to provide customers with “even better service and more efficient delivery of our products.” It further calls this “strategic expansion” a “significant milestone in the company’s commitment to innovation, efficiency, and global growth.”

As mentioned on Monday, the joint venture agreement will be between Sailun Singapore, a wholly owned company established in Singapore through a wholly owned subsidiary outside the company, and Mexico-based and TD International Holding S.A.P.I.DE C.V. The factory will have an annual production capacity of 6 million semi-steel radial tyres and involve a total project investment of US$240 million. The joint venture company is also considering the construction of an annual production capacity of 1.65 million all-steel radial tyre project in the future.

“This new facility will be equipped with state-of-the-art technology and staffed with highly skilled professionals who are committed to maintaining the high standards of quality and innovation Sailun is known for,” says Peter Koszo, president North America. “This expansion will not only allow us to meet the increasing demand for our products but also enable us to design, test and now build products for North America, in North America.”