Sailun Group begins trial production at new tire plants in Mexico and Indonesia

China's Sailun Group has begun trial production of tires at new plants in Mexico and Indonesia, with commercial production slated to begin by year-end. The news comes from the company's social media posts, via ERJ and Tire Business. The first tires were produced in late May at the new greenfield sites in Guanajuato, Mexico and Central Java, Indonesia.

Groundbreaking for the Mexican tire plant was held just over one year ago, on May 15, 2024. Capacity will be 6 million units/year of passenger car radials. Total investment in the site is $240M. Sailun currently serves the US market from plants in Vietnam and Cambodia, which are currently subject to 25% import tariffs.

The plant in Demak City, Central Java, Indonesia broke ground in September 2024. The plant is budgeted at $250M and will have a capacity of 3 million units/year for passenger car/light truck tires, 600,000/year of truck/bus tires, and 37,000 tons/year of OTR tires.

Sailun Group is currently ranked as the 10th largest tire company in the world based on annual sales of RMB 25.98B ($3.66B) in 2023.