Tire giants flock to Nanjing to build a tire industry chain


Since the beginning of this year, through the joint operation of state-owned, private and foreign capitals, Nanjing has been building a tire industry chain with good strength and trying to build it into another pillar industry in the city.

On June 24, South Korea Hyosung Group and Nanjing Economic and Technological Development Zone signed an agreement to build a new composite metal wire project with a total investment of US$150 million and a registered capital of US$50 million in the Development Zone. The project will start construction in August of this year. The first phase of the second half of next year is expected to be put into production. It is mainly used for the production of high-grade radial tires, and will be supplied to Nanjing, Kumho, Hankook, and Jiatong tire companies in the surrounding areas.

Hyosung Group is one of the top ten corporate groups in Korea and has investments in Beijing, Qingdao, and Zhangjiagang. This investment in Nanjing is the second new composite wire plant established in China.

The previous May 12th, Yangzi Petrochemical Company and the private company Nanjing Jinpu Group signed a memorandum of understanding for the joint venture to construct the Ding stylastic rubber project. The project is based on 60% and 40% equity joint ventures and is planned to start construction within the year. The first phase of the project will be completed and put into operation in the first half of 2006. The project will produce 200,000 tons of Ding Ding Rubber per year, and it will also be used for supporting Kumho tires in Nanjing.

On May 28th, Kelon (Nanjing) Special Textile Co., Ltd. held a groundbreaking ceremony. This company, which is invested by South Korea Kelon Group in the first phase, has invested 60 million U.S. dollars to produce high-grade car tire cord fabrics. It can produce 3,000 tons of special cord fabrics each month after it is put into operation, and it also supplies Nanjing Kumho tires.

Nanjing Jinhu Tyre Co., Ltd. is a large-scale professional tyre manufacturer jointly built by Nanjing Tyre Factory, Korea Kumho Group and the World Bank International Financial Co., Ltd., with a total investment of US$119 million. After the product was put into production in 1997, the company’s domestic sales volume has been increasing year by year. The company is currently supporting more than 30 automakers. Its products are also exported to more than 30 countries and regions in the world through South Korea's Kumho Group's overseas sales network. The export volume accounts for 50% of the total sales volume.