News from Notch Consulting, Inc.

Nexen Tire Europe is ready to begin trial production at its $1 billion greenfield tire plant in Zatec in northeastern Czech Republic, pending permission from “appropriate authorities.”

Nexen broke ground on the project in October 2015. Start-up of the first phase of the factory, producing roughly 15,000 units a day, was scheduled for 2018. Nexen plans to increase the plant’s production capacity gradually to over 12 million units a year.

Zatec is Nexen’s second tire plant outside Korea; the other is in Qingdao, China.

Reference article found here.

China’s Shandong Linglong Tire Co. Ltd. has laid a ceremonial corner stone for its greenfield tire factory project in Zrenjanin, signaling the start of construction for the $994 million project in northern Serbia.

“Linglong’s arrival in Serbia is a great opportunity given by the openness and win-win of times. We will live up to our expectations, ensure the rapid and high-quality construction of the project, strive for early production, and at the same time, Linglong will strengthen cultural exchanges and integration with Serbia, aiming to contribute to the establishment of a healthy, stable and sustainable economic and trade cooperation between China and Serbia,” said Wang Feng, Chairman and CEO of Linglong Tire.

Construction will be in three phases over six years and will span 4.24 million square feet, Linglong said.

Operated by Linglong International Europe d.oo. Zrenjanin, the plant is rated at 13.6 million tires per year, comprising 12 million car tires, 1.6 million truck/bus tires, and 20,000 off-the-road tires.

Press release found here.

Chinese tire company Prinx Chengshan (Shandong) Tire Co. Ltd. has broken ground for its new manufacturing plant in Thailand. Production is projected to begin in mid-2020.

The tire maker is investing nearly US$300 million in infrastructure and production equipment for the first stage of production. The plant will adopt leading tire industry design philosophy and be set up according to artificial intelligence manufacturing standards. When the facility’s first stage is completed, it will be capable of producing 4 million passenger car tires and 800,000 all-steel truck and bus radials per year.

Prinx Chengshan expects the new facility to consolidate and expand its global production capacity, boost its international competitiveness, and better meet the needs of overseas customers.

“The establishment of the first overseas production base in WHA ESIE 3 in Thailand is a major step for the expansion of Prinx Chengshan,” said Che Hong Zhi, chairman of the board of directors of Prinx Chengshan (Cayman) Holdings Co. Ltd. and chairman of the board of Prinx Chengshan (Shandong) Tire Co. Ltd. He said investment in Thailand, “is an important step in forging Prinx Chengshan’s internationalized brand. It is also a favorable exploration to deepen the good-neighborly and friendly relations between China and Thailand, and promote the friendly economic exchanges between China and Thailand.”

Six years after the Michelin Group closed its plant there, tire production returns to Algeria. The Iris Group announced the successful completion of the first test phase of the company’s new tire factory in Setif, Algeria.

Production of 1 million passenger car radial (PCR) tires is planned for the first year, followed by 2 million units of both PCR and truck and bus (TBR) tires in the second year.

Off-highway tire manufacturer Balkrishna Industries Ltd. (BKT) announced in November 2018 that it is budgeting $100 million to build its first tire plant in the U.S.

Minoo Mehta, president of BKT USA Inc., said 40 sites in several states are being considered, including sites in Georgia, Mississippi, and South Carolina, states where several plants have opened recently or are under construction. Sites in Alabama, Indiana, and Kentucky also are being considered.

The site will be chosen in January, according to Rajiv Poddar, joint managing director of BKT. He expects site preparation to take three to four months from the day they select the land. The target date for the plant to open is 24 months from the groundbreaking, likely the second quarter of 2021.

Cooper Tire & Rubber Company is forming a joint venture with Sailun Vietnam Co, Ltd to build a two million capacity truck and bus radial manufacturing plant. Pending closing and government approvals, the facility will be located near Ho Chi Minh City, Vietnam, at the site of Sailun Vietnam’s existing operations, which early in 2018 signed an offtake agreement to produce Roadmaster, Dean and Starfire brand tires for Cooper.

Sailun Vietnam operates two factories in Vietnam, including the Chinese manufacturer’s first outside its domestic market, located on Phuoc Dong Industrial Park, Tay Ninh Province, and manufactures car, truck, and OTR tires, with facilities for technical research for future product development.

Cooper will own 35 per cent of the new venture. Total investment in facility and equipment in the joint venture is expected to be between $220 and $240 million. Cooper said it would be funded through capital contributions and debt, with Cooper being responsible for its pro rata share.

Construction of the facility is expected to begin in early 2019, with production beginning in the first half of 2020.

Referenced article found here.

Off-highway tire manufacturer Balkrishna Industries Ltd. (BKT) is budgeting $100 million for the new tire plant it is planning to build in the U.S., the company disclosed this week.

The new factory will be BKT’s first factory outside of India and fifth tire plant overall. BKT is India’s fifth largest tire maker and thirty-ninth worldwide, based on fiscal 2017-18 sales of $692 million.

The company said it expects the new plant to open in the first half of 2021 with a capacity of 20,000 metric tons per year. That’s smaller than any of the company’s four plants in India. By comparison, the company’s newest factory, in Bhuj, Gujarat, is rated at 130,000 tons per year.

In a November investors presentation, BKT said the new plant would allow it to accelerate its business with North American equipment makers by being able to offer faster deliveries as well as enable it to export to neighboring countries “in a more competitive manner.”

BKT is represented in North America by BKT USA Inc. in Fairlawn, Ohio.

Read the full report here.

Jiangsu General Science Technology Co. Ltd., reacting to increasing international trade barriers, plans to build a passenger and truck/bus tire plant in Thailand’s Rayong Industrial Zone and is committing up to $300 million for the project. JGST first proposed building an overseas plant in April, in Cambodia, but has decided to change its location.

The plant is designed with capacities of 6 million passenger tires and 1 million truck/bus tires annually, the company said. Construction is slated to take 15 months, and the plant is expected to generate $36 million annual net profit on $320 million in revenue when on full stream upon the third year of its operation.

Among tire makers already manufacturing in Thailand are Bridgestone Corp., Michelin, Zhongce Rubber Co. Ltd. and Qingdao Linglong Tire Co. Ltd., JGST said.

Sourced article found here.

China’s Shandong Linglong Tire recently held a ground breaking ceremony for its fourth facility at its Hubei Linglong Tire 247-acre site in China.

Its projected production capacities are 12 million passenger tires, 2.4 million truck/bus tires and 60,000 OTR tires.

Yantai, China-based Linglong announced its plans for the $875 million project last March.

According to Linglong, the plant will integrate intelligent manufacturing, product lifecycle management, industrial big data application and a high-end brand. The company wants to “break through regional restriction” and serve customers at zero distance, while improving market share and reducing logistics costs.

Referenced article found here.