ZC Rubber building factory in Mexico

Not only is Zhongce Rubber Group Co., Ltd (ZC Rubber) setting up a new factory in Indonesia, the Hangzhou, China-headquartered tyre maker has also unveiled plans for a plant in Mexico. Confirming remarks made to Tyrepress in January, today the company said it is looking to establish a manufacturing facility in Saltillo, in the state of Coahuila, with a potential size of up to 600,000 square metres. It will also build a North American warehouse centre adjacent to the factory to improve the local distribution network and optimise cost efficiency.

The factory’s strategic positioning, less than 200 miles from the US-Mexico border, makes the site an “ideal choice” for ZC Rubber when meeting the “dynamic demands” of both the Mexican and US/Canadian markets. “Our plan to open a tyre factory in Mexico demonstrates our commitment to meeting the growing demand for high-quality tyres in the region,” comments Henry Shen, vice president of ZC Rubber. “While we explore this opportunity, we remain focused on our customers’ needs and operational efficiency by setting up a complete local distribution network.”

Speedy construction schedule

ZR Rubber shares that its planned facility will embrace the Future Factory concept, focusing on environmental sustainability, energy efficiency, high automation and overall operational efficiency. If the plan progresses according to schedule, the company estimates completing the facility’s construction within approximately 12 months.

“This potential expansion will strengthen ZC Rubber’s position as a major player in the global tyre industry, allowing the company to provide high-quality tyre solutions to customers in the region,” states ZC Rubber. “It will mark a significant milestone in its global expansion strategy, reaffirming ZC Rubber’s unwavering commitment to delivering excellence and innovation to customers worldwide.”

International growth

ZC Rubber’s official announcement regarding the proposed factory in Mexico does not include information such as planned capacity, product mix and how much the company expects to invest in the project. As ZC Rubber is not yet a listed company, such information is not publicly available. We will share further details as soon as these are known.

When we caught up with the ZC Rubber team in July 2023, Richard Li, marketing director of international business, confirmed the tyre maker had already conducted feasibility studies for the new plant in North America. This is one of two locations mentioned, and the site that will take priority. The other location appears to be somewhere in Europe.