O' Green Tire Company, located inDongying,ShandongProvince recently joined hands with Indonesia's PT. GentamuliaInfra to build up a tire project inIndonesia.
O' Green and PT. GentamuliaInfra will co-invest 200 million dollars to respectively hold 51% and 49% shares in the project. They plan to establish two production lines inIndonesia's west Java area, with an annual production capacity of 6 million half steel radial tires and 1.2 million full steel radial tires respectively.
The project is planned to be constructed in two phases. After completion, the project could reach 700 million dollars of annual output value.
Since the beginning of 2012,China's tire market entercountered many obstacles as fierce competition, high cost, some countries' trade barriers of anti-dumping and countervailing.
Indonesia, with abundant natural rubber resource, friendly national policies and great market demand, provides open investment environment forChina's tire manufacturers.
This project is the beginning for Dongying tire enterprise to establish manufacturing base overseas, which set a good model forChina's tire manufacturers to get out of difficulties, analysts said.
