SHANGHAI, China—Chinese tire maker Sailun Group Co. Ltd. has unveiled plans to establish a "functional new materials" group designed to improve the efficiency of tire production within the group.
Sailun—considered the world's No. 17 tire maker—has earmarked $345 million for the Qingdao Dongjiakou materials project, which will have a rated annual capacity of 500,000 metric tons of functional new materials once fully on stream.
In the first phase, the project will manufacture 200,000 tons of new materials, which will be based on the company's "liquid gold" liquid-phase rubber-mixing process, Sailun in a filing with the Shanghai Stock Exchange.
The new plant will be constructed at the Dongjiakou Chemical Industry Park and is expected to take 36 months to complete, Sailun said. Dongjiakou is a coastal port town about 25 miles south of Qingdao.