News from Notch Consulting, Inc.

December 12, 2017

Sailun to increase investment in Vietnam tire plant

Filed under: Tires — Tags: — Notch @ 8:46 am

Sailun Jinyu Group Co. Ltd. plans to increase its investment in a truck and OTR tire plant under construction in Vietnam by more than $140 million, according to a company filing on the Shanghai Stock Exchange.

In late 2015, Sailun Jinyu announced plans to build the plant, rated at 1.2 million truck and bus tire and 30,000 OTR tires annually. The company projected the plant would take three years to build and commission. The investment at that time was $200 million.

The company filing did not provide a status update on the plant.

With this new investment, Sailun (Vietnam) Co. Ltd., subsidiary in Gò Dầu, Tây Ninh province, will have registered capital of $220 million.

The investment is being funded by the company’s private placement in November, which raised $195 million capital.

Sourced article found here.

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November 11, 2017

GRI to open Sri Lanka ag tire plant in January

Filed under: Tires — Tags: — Notch @ 5:55 pm

Global Rubber Industries Pvt. Ltd. (GRI) is prepared to bring on stream in January the radial agricultural and construction tire plant it is building in Badalgama, north of Colombo. Located next to its existing solid industrial tire factory, GRI broke ground on the $40 million facility in late 2016.

The 1.25 million sq.-ft. plant will have a rated capacity of 25 metric tons a day, making it the largest factory in Sri Lanka dedicated to making specialty tires and the first to produce radial agriculture tires, according to GRI.

All the products made at the new plant will be destined for export, the company said.

Referenced article found here.

October 19, 2017

Hankook opens first U.S. manufacturing plant

Filed under: Tires — Tags: — Notch @ 12:24 pm

On October 17, Hankook Tire America Corp. held a grand opening ceremony for its first U.S. manufacturing facility. The $800 million plant in Clarksville, Tennessee is expected to bring 1,800 jobs, according to a company press release.

The plant, Hankook’s eighth facility worldwide, will produce 5.5 million units annually in its first phase. When the second phase of development is complete, Hankook Tire will double its production capacity to 11 million units annually.

“The new Tennessee plant signifies Hankook Tire’s growing business in the United States and our continued journey toward being a global leader in the tire industry,” said Seung Hwa Suh, Global CEO of Hankook Tire. “The investment in the U.S. is part of our ongoing commitment to innovation, state-of-the-art technology and service for our customers. This high-tech, sustainable facility will enable Hankook Tire to execute every phase of our business in the U.S., from R&D to production and sales.”

Read the full press release here.

Conti’s Mississippi plant construction on schedule

Filed under: Tires — Tags: — Notch @ 12:03 pm

Site clearing for Continental A.G.’s $1.4 billion commercial truck and bus tire plant near Clinton, Mississippi is nearly finished, keeping the project on schedule to begin tire production by year-end 2019.

The plant is projected to produce 750,000 truck and bus tires annually in the first phase, Conti said, starting with approximately 500 employees. Full projected employment of 2,500 won’t be reached until 2028.

Referenced article found here.

October 5, 2017

Giti ribbon cutting marks start of production at South Carolina plant

Filed under: Tires — Tags: — Notch @ 11:09 am

South Carolina Governor Henry McMaster and Walmert President and CEO, Greg Foran were present to help Giti Tire Group mark the start of production at the firm’s $560 million, 1.7 million-sq.-ft. Richburg tire plant and distribution center on October 4.

Originally announced in early 2015, the plant is scheduled to produce several hundred thousand Dextero-branded passenger tires for Wal-Mart in the remainder of 2017. Giti Tire hopes to ramp up production to several million passenger and light truck tires in 2018.

The plant’s first-phase nameplate capacity is 5 million tires.

A second-phase capacity expansion will be market-driven, the company said.

Read the full press release here.

October 2, 2017

Nokian breaks ground on Tennessee plant

Filed under: Tires — Tags: — Notch @ 11:29 am

Taking the next step toward its first tire plant in North America, Nokian broke ground on the $360 million manufacturing facility in Dayton, Tennessee on September 20. Nokian Tyres CEO Hille Korhonen and Tennessee Governor Bill Haslam joined the celebration.

With production launching in 2020, the new plant will service customers across the United States and Canada, concentrating on the production of North American-specific car and light truck all-season tires. The Tennessee location will increase production and warehouse capacity, allowing Nokian Tyres to meet the increasing demand throughout North America.

The new plant will be capable of producing four million tires annually with the room for expansion to meet future demand. The site will also house a distribution facility with a storage capacity of 600,000 tires.

Read the full press release here.

September 29, 2017

Sentury seeking equity partners for U.S. plant

Filed under: Tires — Tags: — Notch @ 12:11 pm

Sentury Tire North America has engaged Jones Lang Lasalle IP Inc. (JLL) of Atlanta to help it solicit offers from developers interested in becoming equity partners in the $530 million tire plant it’s planning to build near LaGrange, Ga.

Sentury is seeking a developer to construct the $200 million facility building which will then be subject to a 25-year sale-leaseback agreement.

The firm has secured a 400-acre plot in the LaGrange Callaway South Industrial Park for the plant, whose first-phase capacity is pegged at 12 million units a year with up to 1,000 employees.

“Sentury Tire is a major player in the tire business, and is looking for an equity partner in this state-of-the-art facility so it can rapidly continue to grow its North American market share,” said Todd Torok, JLL Managing Director. “We are expecting to see heavy interest from institutional investors both domestically and abroad.”

The new headquarters will help strengthen Sentury Tire’s North American presence, where it currently does 30 percent of its sales. The company has become one of the fastest growing tire manufacturers in the industry by selling its Sentury, Landsail, Groundspeed and Delinte brands.

Sourced article here.

JLL’s press release here.

September 21, 2017

Goodyear, Giti, Hankook plants due on stream

Filed under: Tires — Tags: — Notch @ 3:42 pm

With three new factories poised to begin production in the coming months, tire manufacturing in North America will see a significant boost.

Together the plants — Goodyear’s in San Luis Potosi, Mexico; Giti’s in Clarksville, Tenn; and Hankook’s in Richburg, S.C., represent nearly 17 million units of new annual capacity for passenger and light truck tires.

Giti and Hankook have scheduled ribbon-cuttings for October. Goodyear has yet to announce similar plans for its factory.

Goodyear’s plant, its first new factory in the Americas in 25 years, represents an investment of $550 million and is rated at 6 million tires a year.

Giti’s 1.8 milllion-sq.-ft. plant represents a $560 million investment. Capacity will be 5 million car and light truck tires a year

Hankook’s 1.5 million-sq.-ft. Clarksville plant represents a $580 million investment. The firm, a unit of South Korea’s Hankook Tire Co. Inc., plans to ramp up production steadily by 2018 to the rated capacity of 16,000 units a day.

Sourced article can be found here.

September 13, 2017

Goodyear breaks ground on Luxembourg tire plant

Filed under: Tires — Tags: — Notch @ 12:26 pm

Goodyear broke ground yesterday on a passenger tire plant in Colmar-Berg, Luxembourg “that utilizes an innovative production process to meet growing customer and consumer demand for premium tires.”

Named Mercury, the proprietary process features highly-automated, interconnected workstations, using additive manufacturing technologies to efficiently produce premium tires in small-batch quantities on-demand for replacement and original equipment customers.

“Mercury addresses the increasing complexity in the tire industry as the number of vehicle models and options available to consumers continues to proliferate,” said Richard Kramer, Goodyear chairman, CEO and president.

The new facility, set to open in 2019, is in close proximity to Goodyear’s Luxembourg innovation center and tire proving grounds. The company is investing $77 million in the facility, which will produce approximately 500,000 tires annually.

Goodyear also has truck tire plant in Colmar-Berg.

Read the full press release here.

August 16, 2017

Tennessee approves grant for Nokian plant

Filed under: Tires — Tags: — Notch @ 2:24 pm

Tennessee officials have approved a $28.42 million state infrastructure grant in support of Finnish tire manufacturer Nokian Tyres’ planned $360 million tire factory.

Nokian and the state announced in May the manufacturer would build its first U.S. tire plant in Dayton, north of Chattanooga. Construction for the plant will begin in early 2018 with the plant being fully operational by 2020.

Sourced article found here.

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