In a move towards expanding its global footprint, Huayi, the parent company of the renowned Double Coin brand, celebrated the production of its first tyre in the second phase of its Thailand factory on 30 August. This marks a pivotal moment in the company's journey, as it aims to solidify its position in the international tyre market.
The second phase of the project, which commenced construction in March this year, boasts a production capacity of 300,000 all-steel radial tyres. With this expansion, Huayi's Thailand factory is set to see its annual production capacity soar to an impressive 1.5 million pieces, if the second phase reaches its full potential.
This Thailand-based factory is not just a testament to Huayi's growth but also symbolises the strengthening ties between China and Thailand. The facility is a collaborative effort between Huayi and a local Thai enterprise. The first phase of the venture had already set a robust foundation with a production capacity of 1.2 million all-steel radial tyres.
Huayi's stake in the Thailand factory is channelled through its subsidiary, Huayi (Hong Kong), which holds 43.35% of the shares. The factory's performance in 2022 was nothing short of remarkable, with a capacity utilisation rate of 116%. This indicates that the factory was operating beyond its intended capacity, a clear sign of the soaring demand for its products.
Financially, the first half of 2023 has been promising for Huayi (Hong Kong). The company reported a revenue of 1.493 billion yuan (approximately £168 million; €193 million) and a net profit of 113 million yuan (about £12.7 million; €14.6 million).
The expansion of the Thailand factory is a strategic move by Huayi, given the increasing demand for quality tyres in the global market. With the second phase now operational, the company is poised to meet this demand more effectively, further establishing its reputation as a leading tyre manufacturer.
