A 10.4-Billion Factory Is About To Start, May Affect Chinese Tires
According to foreign media reports recently, Saudi Arabia's first tire factory is about to start construction.
The new factory is located in Yanbu City, one of the main industrial bases in Saudi Arabia. It is reported that the factory plans to invest 1.4 billion euros (about 10.4 billion yuan). Its designed annual production capacity is 15 million car tires and truck tires.
The project will be launched in the fourth quarter of 2023, no later than the first quarter of next year. The specific commencement time is about the middle of 2024. The preparatory party for the project is Saudi Blatco.
In January 2022, this company signed a memorandum of understanding with Jinhu Tire. The two sides plan to reach technical cooperation to produce some Jinhu tires in the new factory.
The person in charge of Saudi Blatco recently stated that the details of the cooperation are still at the negotiation stage. He said that although the contract has not yet been signed with Jinhu, it is expected to be completed by the end of this year.
According to data, the demand for tires in Saudi Arabia is about 25.36 billion yuan. The country has a large demand for Chinese tires, followed by Japanese tires.
