Two major tire projects attract investment

May 10,2024

Karamay City, Xinjiang, with its rich resource advantages, outstanding policy advantages, convenient location advantages, and superior business environment, has become a key area for investment by many tire companies in recent years.

On May 7, the engineering heavy-duty tire production and manufacturing project in Dushanzi District, Karamay City, Xinjiang invited foreign investment.

1.1 billion tire project, attracting foreign investment

According to reports, the project is expected to have a total investment of 1.1 billion yuan, covering an area of 230 acres, to build a heavy-duty tire manufacturing factory, production lines and supporting facilities, with an annual output of 1.5 million sets of commercial heavy-duty tires.

After the project is put into operation, it is expected to achieve annual sales revenue of approximately 1.26 billion yuan, profit of approximately 189 million yuan, and increase social employment by 400 people.

It is reported that the project can rely on the high-end chemical synthetic rubber foundation of Karamay City and the solution-polymerized styrene-butadiene rubber produced by Dushanzi Petrochemical, the latter is the only leading enterprise in China that has reached tire production and application.

At the same time, the market in Xinjiang is currently vast. Taking 2022 data as an example, Xinjiang scrapped 270,000 tons of 16-size engineering tires throughout the year, and annual engineering tire sales exceeded 6 billion yuan. Coupled with factors such as the establishment of the Xinjiang Pilot Free Trade Zone and the opening to the west, the market prospects for setting up engineering tire production projects in Xinjiang are extremely broad.

Taking Kazakhstan as an example, there are currently only medium-sized tire manufacturing plants jointly established with Russia. Due to sanctions on Russia and other reasons, the country needs to import about 6 million tires of various types every year. Due to sanctions on Russia and other reasons, the country needs to import about 6 million tires of various types every year. The industrial development level of other Central Asian countries still lags behind Kazakhstan, and the industry is in a relatively early stage and there is a large incremental market.

Currently, there is a harmless treatment project under construction by Xinjiang Lunjiang Carbon Neutral Industrial Park Co., Ltd. in Dushanzi District. It is expected to be completed in the third quarter of this year and can serve as a raw material supplier for the project; At the same time, standardized factories and supporting facilities have been built in the Dushanzi District High-tech Industrial Park to facilitate the entry of enterprises.

The tire project with a total investment of 2.6 billion is progressing rapidly

At the beginning of this year, the carbon-neutral industrial park project of the tire industry chain in Dushanzi District, Karamay City also released investment information. The project is expected to have a total investment of 2.6 billion yuan and cover an area of 190 acres. After the project is completed, it is expected to achieve annual sales of 2.277 billion yuan and tax and profit of 255 million yuan.

It is reported that the Dushanzi District tire industry chain carbon neutral industrial park project is divided into five sub-projects:

(1) A new material project for harmless treatment and production of tires with an annual output of 1 million sets.

(2) Construction of a harmless treatment and retread tire reuse project with an annual output of 55,000 16.00R25 OTR tires.

(3) Project with an annual output of 20,000 tons of special compound rubber for tire treads.

(4) Annual production of 3,000 all-steel radial giant tires and 60,000 all-steel engineering vehicle tire industry intelligent factory projects.

(5) Tire intelligent network management and service projects, provide transportation companies with full-process tire service solutions through "tire sharing" + "rent instead of buy".

In April this year, Xu Junshi, chairman of Xinjiang Lunjiang, said in an interview that it is expected to complete the first phase of the tire industry chain project demonstration project in September this year and enter the full-process production stage.

The project with an annual output of 1.2 million tires is under construction

As early as February 8 last year, the Dushanzi District Government of Karamay City and Jianda (Shanghai) Energy Technology Co., Ltd. signed a cooperation agreement on the 1.2 million sets of radial tire project.

According to the agreement, the project plans a total investment of 1.565 billion yuan, using butadiene rubber, styrene-butadiene rubber and natural rubber as the main raw materials to produce radial tires for large trucks and heavy-duty machinery trucks. After reaching full production, the total profits and taxes are expected to reach 360 million yuan, providing 800 jobs.

On March 17 of the same year, the project started construction of its mixing workshop, steel structure production workshop and production building.

The project can give full play to the company's own technical advantages and utilize the petroleum and petrochemical resources in Dushanzi District, Karamay City to produce high-quality radial tires.


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