WUXI, China—Jiangsu General Science Technology is raising capital through private placement to fund a fully automated smart plant with 1.2 million unit annual capacity for high performance truck and bus tires.
The company plans to raise up to $210.3 million in funds, all of which will be invested into the new plant with $227.5 million total investment, it said in a statement.
"We are a strong player in the replacement market, and our products have been in short supply," General Science said. "The traditional production process, dependent on manpower, has higher labor cost, lower efficiency and cannot guarantee stability in product quality."
The new plant, pending further regulatory approval, is located at General Science's existing site in Wuxi, Jiangsu province and will take 15 months to complete. It's expected to generate $57.8 million annual profit on $329.6 million sales when fully operational.
Last year General Science reported a 12 percent rise in revenue to $597.7 million, nearly 90 percent of which coming from the domestic market. Net profit dropped 13 percent to $23.4 million due to rising raw material prices.