Chinese tire plant project set to move forward

Jiangsu Chengtai Vehicle's new two-wheeler and specialty tire project in Lianyungang passed environmental regulatory approval in October.

Located at the city's Zhewang Coastal Industrial Zone, the project covers more than 680,000 square feet and has a $151 million investment earmarked. A contract for the project was signed in April.

The plant as a planned capacity of 6.6 million tires per year, accounting for 3.2 million half-steel motorcycle tires, 600,000 golf cart tires, 200,000 all-terrain vehicle tires, 1 million snowmobile tires and 1.6 million tubes.

The project will create 150 new jobs and is expected to bring in $19.4 million annual total profit or $14.8 million profit after tax when in operation, said its environmental filing. Construction of the plant is slated to take a year.

Jiangsu Chengtai is a newly set up subsidiary of Qingdao Chengtai Vehicle, a maker of specialty tires and vehicles since 2003.