Wanli Tire plans a significant capacity increase

A state-owned company called Wanli Tire Co Ltd, with its headquarters in Guangzhou, the provincial capital of Guangdong, started building a new production center last year as the nation’s tire market started to rebound. Located in the current factory area of its production base in Conghua, a suburb of Guangzhou, the company’s third-phase expansion project intends to construct a demonstration factory for the production of tires that is intelligent, efficient, and green. It has a planned annual production capacity of 12 million units. According to corporate management, a significant spike in orders was the driving force for the expansion of the production capacity.

According to the company, Wanli saw increases in production and sales volume of 18.77 percent and 19.42 percent, respectively, in 2023. The company also reported a profit rise of 292 million yuan ($40.69 million). In addition to turning losses into profits, the company has experienced double-digit increase in sales over the last two years. “We remain optimistic about future market growth,” Cao stated. By 2025, he said, the company hopes to reach a revenue size of about 10 billion yuan through increased production capacity and the use of smart technology. Last year saw a revival in China’s tire business thanks to persistently high demand from the auto sector.

In 2023, 139 million steel radial tires were produced in China, a 14% increase over the year before. According to a National Business Daily report, production of partial steel radial tires hit 591 million units during the same period, or a 22 percent year-over-year growth. Numerous Chinese tire manufacturers stated in the report that high demand from local automakers and a surge in orders from outside have caused their tire stocks to fall to record low levels, and that their orders are already planned for delivery two months in advance. With a particular focus on the new energy vehicle market, Wanli has boosted its R&D expenditures.