Sailun Tire recently announced that the company's overseas wholly-owned subsidiary Sailun Singapore and TD Mexico signed the "joint venture agreement", the two sides plan to establish a joint venture company in Mexico to invest in the construction of an annual output of 6 million PCR tire project. The total investment of the project is 240 million US dollars.
According to the announcement, the registered capital of the joint venture is US $120 million, of which Sailun Singapore will contribute US $61.2 million in cash, holding 51%; TD Mexico paid $58.8 million in cash for a 49% stake.
Sailun Tire said that on the one hand, the construction of the project will help the company to provide faster and better market services to customers in North America, improve the sales business to original customers in North America and develop potential customers; On the other hand, it will further enhance the company's ability to deal with international trade barriers, which is of great significance to enhance enterprise competitiveness and market share.
It is worth mentioning that in addition to the production capacity of PCR tires, the proposed joint venture company also considers the construction of an annual output of 1.65 million TBR tires in the future, which is expected to help the company expand its supporting market in North America.
As a pioneer of tire enterprises to set up factories in the sea, Sailun Tire has been moving forward with its globalization strategy in recent years, and has fully enjoyed the dividends brought by taking the lead in going abroad. The projects in Vietnam and Cambodia have strongly supported the company's performance growth. In the first half of this year, the company's subsidiary Sailun Vietnam achieved revenue and net profit of 3.127 billion yuan and 572 million yuan respectively; The revenue and net profit of Sailun Cambodia, a subsidiary, were RMB830 million and RMB136 million respectively, representing an increase of 226.76% and 1346.89% respectively as compared with the same period of last year, reflecting the company's excellent experience in production and management of overseas projects.
