China's Sentury to build tyre plant in US south

09 September 2016 17:31 Source:ICIS News

HOUSTON (ICIS)--Georgia Governor Nathan Deal announced this week that China’s Qingdao Sentury Tire has selected LaGrange, in southwest Georgia, as the site for a $530m car and light truck tyre plant.

In the announcement on Thursday, the governor did not disclose what financial assistance, if any, the state of Georgia is offering for the project.

The plant will be in operation by 2018, create more than 1,000 jobs and be capable of producing 12m tyres/year for cars and light trucks at full capacity, according to Sentury executive vice president Rami Helminen.

“We are confident that Georgia has the infrastructure that can help us build a successful logistical operation to supply our growing aftermarket dealer sales and OEM sales to auto manufacturers in the North American market,” Helminen said.

Helminen added Sentury plans to incorporate a research and development centre into the plant that will employ an additionall estimated 100 technical personnel.

Sentury goes to the US market with three brand names: Delinte, Landsail and Sentury. About 70% of Sentury tyre sales are generated in the North American and EU markets, the company said.

The automotive industry is a major global consumer of petrochemicals which contributes more than a third of the raw material costs of an average vehicle. ICIS tracks the movement of petrochemical raw material costs in auto production both globally and regionally with the weighted ICIS Basket of Automotive Petrochemicals (IBAP).

ICIS produces a monthly Global Automotive report covering the major automotive chemicals markets, the auto-industry, the IBAPs and macroeconomic trends. For more information on the report and details on how to subscribe, please click here

By David Haydon