ANHUI, China—A groundbreaking ceremony was held last month to mark the start of construction for Hefei Wanli, a joint venture between Guangzhou Fengli Tire & Rubber Co. Ltd. and Chinese automotive maker China Anhui Jianghuai Automobile Co. Ltd. (JAC).
The new plant, located at a 3.66 million sq.-ft. site at JAC's industrial park in Hefei, Anhui Province, will produce all-steel radial truck tire. The firms are investing $325 million in the facility, which will have an annual capacity of two million tires.
Guangzhou Fengli is a joint venture involving South China Tire & Rubber Co. Ltd.—producer of the Wanli and Sunny brands—and Guangzhou International Group Co. Ltd.
Construction of the site is scheduled to start in June and be completed by December, 2016.
The project combines the resources of two of China's major players along the automotive industrial chain and will generate scale effect to its fullest extent, said Fengli's website.
The company produced its 100 millionth tire under the Wanli brand in Sept 2014.
JAC describes itself as a “comprehensive automobile company with the most complete range of self-owned branded products in China.” Its product range covers cars, vans, SUVs, light and medium-duty trucks, multi-functional commercial vehicles and buses and vehicle components.
Last year it initiated sales efforts in the U.S. with its iEV electric passenger vehicle.
Guangzhou Fengli has a second expansion project under way at its plant in Conghua, Guangdon Province, to install annual capacity for 10 million eco-friendly, high-performance tires.
The project is budgeted at $328 million and scheduled to be completed by year-end 2015.
The company produced its 100 millionth tire under the Wanli brand in September 2014.