Giti Tire Group is planning to relocate its passenger and truck tire plant in Hefei, China in alignment with a “greener Yangtze River economic belt” initiative. The greener Yangtze River economic belt initiative was launched by China’s central government in 2016. Giti is pushing forward the relocation plan to improve its environmental impact.
Giti has spent more than $3 million since 2017 to address the odor emission problem at the plant. The company also has been running at low utilization rates of 40 percent for truck and bus tires and 20 percent for passenger car tires.
The Hefei plant, opened by Singapore-headquartered Giti in 1993, produces car, light truck, and medium truck tires. Capacity is listed as 23 million units annually.
The new plant’s location will be determined by year-end 2019, with regulatory approvals and construction plans in place by 2020. The company will break ground on the new plant in 2021 and start facility relocation by 2023.
Giti Tire Group has five other plants in China as well as a joint-venture plant in Indonesia and one in the U.S.
Referenced article found here.