Sailun delays Vietnam plant expansion

Sailun Group has revised the timetable for expanding production at its factory in Vietnam. Instead of commencing operations by March 2024, the tyre maker now intends to add a further three million semi-steel radials, one million all-steel radials and 50,000 tonnes of off-highway tyres to its annual capacities by March 2025.

Explaining the delay, Sailun comments on the size of the project and the complex process links involved. It also says that the recent pandemic created disruptions to the materials supply chain and led to longer than anticipated delivery times for equipment.

In September 2022, the China Securities Regulatory Commission approved Sailun’s plan to issue some 2 billion yuan (£218.2 million) in convertible corporate bonds. At the time, the tyre maker said that it would use 1.4 billion yuan (£152.7 million) of the funds raised to expand its Vietnam plant’s production capacities.