Sailun and Tire Direct to invest US$240 million in Guanajuato

Sailun and Tire Direct to invest US$240 million in Guanajuato

LEON, GTO - Investments continue to arrive at the end of 2023 for the Bajio, with the recent announcement of the Chinese company Sailun Jinyu Group, manufacturer of tires for light vehicles, which announced the decision to establish a plant in the city of Leon, Guanajuato, with an investment amounting to US$240 million.

This would be the group's first manufacturing plant in North America and is the product of a joint venture with the Mexican company Tire Direct (TD International Holding).The JV will be called SL & TD Tire Manufacturing and will be 51% controlled by Sailun's Singapore subsidiary, while Tire Direct will hold the remaining 49% stake in the plant.

The plant is expected to be built within twelve months. The main objective of the new plant will be the production of semi-steel radial tires for light vehicles, with an initial annual capacity of 6 million units. Sailun intends to strengthen its position in the automotive tire market through this venture.

In addition, the joint venture partners, Sailun and TD International Holding, have plans to explore the production of all-steel radial tires for trucks and buses in the future, with a planned annual capacity of 1.65 million units in a future expansion.

Sailun will play a key role in supporting the project by overseeing the construction, equipment installation and production aspects of the plant. In addition, TD Mexico will contribute by providing administrative support, managing processes and maintaining external relationships.

In addition, TD Mexico's subsidiary, Tire Direct, touted as Mexico's largest tire distributor, will actively participate in supporting the company.