GUIYANG, China—Guizhou Tyre is to raise its annual capacity for solid tires at its existing site in Guiyang, China, by 168,000 units or 8,000 metric tons, according to the project's environmental impact assessment report issued in September.
The company will pump about $3.5 million (€3 million or 24 million yuan) into the expansion, which is slated to start construction in November 2021 and begin operation in May 2022.
Guizhou Tyre's production of solid tires in 2021 is pegged at 500,000 units, but the demand is predicted to arrive at 580,000 units, according to the report.
The company's two largest OE clients, China's leading forklift makers Anhui Heli and Hangcha, are expected to double their combined production by 2025, according to the report.
This will translate into a 380,000-unit supply shortage each year for Guizhou Tyre by that time.
The company is also planning a $348 million (€300 million) expansion at the site, which will be able to manufacture 3 million units of high-performance truck and bus tires each year, said an earlier announcement by Guizhou Tyre.