General Science Technology to Build Tire Plants in Thailand

Jiangsu General Science Technology to Build Tire Plants in Thailand

On September 17, Jiangsu General Science Technology (stock code: 601500) announced that it planned to invest no more than $300 million in the Rayong Industrial Zone of Thailand to build a project with annual capacity of 1 million pieces of all-steel tires and 6 million pieces of semi-steel tires.

Jiangsu General Science Technology had previously planned to locate its first overseas plant in Cambodia.

However, with the important changes in the international macro-economic and political environment, barriers for tire trading in the international market aggravated. In order to actively promote the internationalization of the company and grasp the advantageous resources and preferential policies in Thailand, Jiangsu General Science Technology adjusted the original investment plan to speed up the construction pace of overseas production base and form core competence.

The construction period in Thailand is 15 months. When operational, it is estimated that the annual operating revenue will be RMB 2.18 billion, the annual net profit will be RMB 250 million, and the investment payback period will be 6.8 years.