SHANGHAI—China's Jiangsu General Science Technology Co. has dropped plans to build a $127 million (€200 million) joint venture tire plant in Baotou, Inner Mongolia.
In a Dec. 28, 2023, stock exchange filing, the company said the project was affected by factors such as the macroeconomic environment, weak demand, industry competition and the domestic Chinese truck and bus tire market situation.
Announced in May, the project was designed to have the capacity to produce 1.3 million high performance radial tires per year, including 1.2 million truck/bus tires, and 100,000 units of off-road tires.
The market, it said, "is still in the weak recovery stage and cannot meet the expected development progress and development needs of the project" in the autonomous region of northern China.
The group added that its decision was made particularly in view of cost, time and project-planning considerations as well as "changes in industry demand for internationalization."
The project cancellation follows General Science's recent announcement of plans to expand its recently opened production facility in Cambodia.
