The off-site technical transformation project of the tire tire A with an annual output of 12.8 million high-performance radial tire production lines was officially launched in Zhazuo Town, Guizhou Province. One phase of the project will produce 1.2 million high-performance radial tires and an annual output of 50,000 high-performance all-steel radial tire technical transformation projects will be completed and put into production within one year.
It is understood that the existing 42.34 million square meters factory site of Yan Tire A has been unable to meet the company's further development. On February 18 this year, the company’s shareholders’ meeting approved the proposal to requisition 1,466,700 square meters of land in Zhazuo, Guizhou, and implement an off-site technical transformation of an annual output of 12.8 million high-performance radial tire production lines.
Industry analysts have analyzed that this off-site technology reform project is a technical transformation that has produced the largest amount of tires and the largest scale of design in the past year. It is an important step for the company to leapfrog development. The project construction period is six years and it is implemented in three phases with a total investment of 7.1 billion yuan.
After the first phase of the project is completed and put into operation in 2012, the production capacity of the high-performance radial tires of the A tire will reach 5.25 million pieces/year. After the project is completed and put into production, the company's high-performance radial tires will have a total capacity of 16.8 million pieces/year, and it is expected to add an average annual sales income of 9.056 billion yuan, an annual average profit of 1.434 billion yuan, and a total investment return rate of 20.18%.
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