Sailun Group Commits $239m to Shenyang Tyre Capacity

Sailun Group has announced a $239 million upgrade at its newly acquired Shenyang facility in Liaoning, targeting 3.3 million all-steel radial tyres a year and 20,000 tonnes of off-the-road (OTR) capacity. The 18-month project will run through Sailun Xinheping (Shenyang) Tire Co., Ltd., positioned to serve domestic and export replacement markets as well as original equipment (OE) programmes. The investment follows Sailun’s purchase of Bridgestone’s shuttered Shenyang truck and bus tyre plant.

Project Scope and Financials

Sailun Group’s filing sets a total outlay of RMB 1.701 billion (about $239m), comprising RMB 1.264bn for construction, RMB 432.95m for working capital and RMB 3.98m in construction-period interest. The build is scheduled over 18 months and, at steady state, is projected to deliver RMB 3.293bn ($461m) in annual revenue and RMB 231m ($32.4m) in net profit.

Capital Structure

Sailun (Shenyang) will inject up to RMB 520m (≈$73m) into Sailun Xinheping, increasing the subsidiary’s registered capital to support the expansion and ramp-up.

Why Shenyang: Market Access and Co-location

“Shenyang, located in Northeast China’s industrial hub and close to major automobile manufacturers, is favourable for tyre industry development,” the company said in its announcement. - Direct quote, Sailun filing.

Proximity to Sailun’s existing Shenyang assets is expected to unlock operating synergies across logistics, maintenance and shared services, lowering per-unit costs while improving supply assurance for OE and replacement channels.

From Bridgestone Exit to Sailun Build-out

Bridgestone agreed in July to transfer 100% of Bridgestone (Shenyang) Tire Co., Ltd. to Sailun (Shenyang) Tire Co., marking the Japanese firm’s exit from China’s truck and bus radial (TBR) segment.

The Shenyang expansion complements Sailun Group’s recent overseas moves, including the start-up of production at its Indonesian plant in May 2025. [Sailun begins tyre production at its new Indonesian plant].

What It Means for OE and Replacement Customers

• Capacity and mix: 3.3m all-steel radial tyres target TBR demand, alongside 20,000 tonnes of OTR for construction and mining applications.
• Service to programmes: Additional output is intended for both OE fitments and the global aftermarket, supporting near-term supply resilience.
• Regional supply chain: Location in Liaoning offers access to major automotive clusters and ports, benefiting Asian and international distribution.

Governance, Approvals and Risks

The investment is subject to approvals by relevant authorities. Sailun Group also flags potential changes in market conditions, financing, policy and macroeconomics as factors that could affect timing and outcomes.

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Tagged with: Sailun Group, Shenyang, all-steel radial tyres, off-the-road tyres, manufacturing expansion, OE fitments, China tyre industry, production capacity, Bridgestone sale, capital expenditure, TBR tyres, OTR capacity

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