Jiangsu General’s overseas factory tyre capacity may usher in breakthrough growth

On 12 January, Jiangsu General held an expansion ceremony for its Cambodian factory expansion project. If we look at the time, the tyre manufacturer just held its shareholders’ meeting on January 12 and approved the proposal to expand the production capacity of its Cambodian production base. Jiangsu General has previously disclosed that the Cambodian factory expansion project is expected to be put into production in the fourth quarter of 2024.

Jiangsu General has accelerated the construction of overseas factories, which may be related to the saturation of overseas factory orders. Currently, General has two factories in Thailand and Cambodia. On 8 January, General revealed when receiving a survey from financial institutions that the order demand for all-steel radial tyres at its Thailand factory in the second half of 2023 “exceeds the existing production scale by more than 50 per cent”. The expansion project of the Thailand factory is expected to be put into production in the second half of 2024.

The first phase of the Cambodian factory project is “accelerating the ramp-up of production capacity” and “has achieved a daily production of more than 10,000 tyres in December 2023”. According to the tyre manufacturer, “customer demand is urgent”. Therefore, Jiangsu General is looking for ways to achieve full production of the first phase of the Cambodian factory in the first half of 2024. According to the construction plan, the first phase of the project has a production capacity of 5 million PCR tyres and 900,000 TBR tyres.

In other words, Jiangsu General’s two overseas factory expansion projects are both scheduled to be put into production in the second half of 2024. Based on this extrapolation, the tyre manufacturer’s overseas production capacity is likely to achieve breakthrough growth in 2025.