Sunday, June 23, 2024

Chinese tire firm announces more investment in Guanajuato

Editor’s note: The original version of this article incorrectly stated that total investment in the state of Guanajuato was US $427 million, rather than referring to the company’s investment in the state.

Chinese tire manufacturer Sailun Jinyu Group will invest 7.2 billion pesos (US $427 million) in building a new plant in Irapuato, Guanajuato, according to Governor Diego Sinhue Rodríguez Vallejo.

In a March 17 statement on the X social media platform, the governor said the company’s new investment will create 1,400 competitive jobs, including high-level positions.

Guanajuato state Governor Diego Rodriquez at Yusei Holdings in Japan
Gov. Rodríguez, center, has been on a tour of Asia this month, drumming up foreign investment in his state. Here, he met with officials at Japan’s Yusei Holdings, which fabricates precision plastic injection molds. Officials agreed to invest US $83.9 million in the state, Rodríguez said. (Diego Sinhue Rodriguez/X)

The company announced in December plans to open its first North American plant in Guanajuato with an investment amounting to US $240 million, together with Mexico’s largest tire distributor, Tire Direct. The plant was reported to be planned for the city of León and it is unclear whether the tire company will move ahead with construction of two plants, or is dedicating the entire investment to the Irapuato plant.

Sailun operates tire manufacturing plants in the Chinese cities of Qingdao, Dongying and Shenyang and also in Vietnam.

Globally, Sailun distributes its products across more than 180 countries. In 2023, the company, headquartered in Qingdao, became the first Chinese tire maker to join the United Nations Global Compact. 

In the León metropolitan area, Sailun competes with global brands such as Michelin and Pirelli. Last month, Pirelli celebrated the manufacturing of their 50-millionth tire, while Michelin celebrated their 10-millionth tire in December 2023.

According to Mexican industry magazine Cluster Industrial, by 2025, the state of Guanajuato will produce more than 16.5 million tires each year, positioning it as Mexico’s leading state in tire production.

 With reports from SPD Noticias and Cluster Industrial

Have something to say? Paid Subscribers get all access to make & read comments.
Mangoes growing on a tree

A week into USDA pause, avocado and mango inspections remain suspended in Michoacán

1
U.S. officials said Mexico has yet to meet safeguards established in 2022 after another incident involving a USDA employee in Michoacán.
Posted currency exchange rates outside of a bank

Peso rallies slightly after Sheinbaum names her first cabinet picks

0
After Sheinbaum named her first six cabinet picks, including ex-Foreign Affairs Minister Marcelo Ebrard, the peso strengthened 0.3% against the US dollar.
Chinatown area of Mexico City

How is an influx of Chinese commerce impacting Mexico City?

8
A recent series published by Reforma newspaper delved into how the "tsunami" of Chinese-owned shopping plazas and warehouses has affected locals.