ZC Rubber increasing Yonggu rubber track capacity

ZC Rubber subsidiary Yonggu is expanding its capacity to produce rubber tracks and other rubber products. On the site of the former Hangzhou Taihong Rubber Track plant in Jiande, in China’s Zhejiang Province, Zhongce Yonggu Rubber (Jiande) Co. will establish a facility that will ultimately have a capacity to make 1 million tracks a year.

The project’s first phase will equip the plant in Jiande to produce 500,000 rubber tracks per annum. Yonggu will implement this first phase with an investment of RMB 600 million (£66.5 million), including a RMB 400 million investment in fixed assets. In a second project phase, Yonggu will add capacity to produce a further 500,000 rubber tracks and other rubber products annually.

According to ZC Rubber, when operational, the first phase of its rubber track project in Jiande will deliver annual sales revenue of RMB 1 billion (£110.8 million) and profit of RMB 50 million (£5.5 million).

Established in 1958 and part of Hangzhou Rubber since 1993, Yonggu specialises in rubber tracks, pads, hoses and belts.