Significant Investment to Double Capacity, Targeting North American and Global Markets
Sailun Group, has announced a substantial increase in investment for its production facilities in Cambodia. This decision follows the company's recent initiation of passenger tyre production in the Southeast Asian country.
Sailun Group has committed an additional RMB 773.69 million (£85.05 million) to their ongoing capacity expansion project in Cambodia. This investment aims to double the current production capacity from 6 million to 12 million tyres annually. The total investment by Sailun in this endeavour now amounts to a significant RMB 2.25 billion (£247.33 million), setting the stage for a facility that will produce 21 million semi-steel radial tyres each year.
The expansion is not only a testament to Sailun Group's growth ambitions but also a strategic move to strengthen its position in the North American market. While North America is identified as the primary beneficiary of this increased production capacity, Sailun also plans to export to other overseas markets, indicating a global growth strategy.
Sailun Group foresees a construction period of 16 months for this ambitious project. The company has high expectations from this expansion, predicting an average annual operating income of RMB 3.23 billion (£355.05 million) and an average annual net profit of RMB 700.52 million (£77.00 million). These figures reflect the company's confidence in the profitability and success of this significant investment.
This development marks a new chapter in Sailun Group's global expansion strategy and is set to have a considerable impact on the tyre industry, particularly in the North American and other overseas markets.
For more information on this topic, you can visit the original article on TyreNews.co.uk: Sailun Tyres Start Passenger Tyre Production in Cambodia.
