Sentury advances second phase of Morocco tire plant

SHENZHEN, China—Qingdao Sentury Tire Co. has advanced the second phase of its Morocco tire production plant, which is currently under construction in Tangier, to the northwest of the country.

The Chinese tire maker has obtained "relevant overseas approvals" from local authorities in Qingdao, China, to go ahead with the $193 million project.

Phase II, initially announced in November last year, will have a capacity to produce 6 million units of radial passenger car and light truck tires, and will reach full capacity in 24 months.

Last summer, Sentury started construction on the $297 million phase I of the project, which will produce 6 million units of tires at full capacity.

Once both phases are completed, the company will have invested $490 million in the factory, which will have the capacity to produce 12 million units of tires per year, Sentury said in a March 13 press release.

In its feasibility study published last year, Sentury said the decision to expand the scope of the project was because its Thai production plant could no longer support customer demand.

In its most recent stock exchange announcement, Sentury said the new project "will give full play" to Morocco's location advantages in international trade "in a timely manner."

In addition to the Morocco investment, Sentury is progressing with a planned $590 million greenfield tire production project in Galicia, northwest Spain.

Sentury unveiled the Spanish project in December 2021, under its "833Plus" strategy to build eight "intelligent tire manufacturing bases" worldwide over a decade.

These will include three plants in China; two in Thailand; one each in Europe, Africa and North America; and three global R&D centers in China, Europe and North America.

Sentury currently operates a facilities with the capacity for 15 million units per year in Jimo, Qingdao and Shandong, China, as well as a site in Rayong, Thailand with the capacity for 5 million units per year.

The Spanish plant will have a total annual output of 12 million radial tires and is to be completed in two phases over a 36-month period.

The first phase, expected to be completed in 24 months, will have a production capacity of 6 million units.

By 2025, production will reach 12 million units, according to Sentury's previous announcements.