Shandong Haohua will set up a new tire plant in Sri Lanka

Chinese tire company Shandong Haohua Tire has signed an agreement to build a radial passenger car, truck and bus tire plant in Sri Lanka. The company, which will appear in the industrial zone of the city of Hambantota, will receive $300 million. It is assumed that the tires produced at the plant will be exported.

The term of the project has not yet been announced.

Shandong Haohua Tire is one of the leading private tire manufacturers in China, with a production capacity of 20 million passenger tires and 5.5 million truck tires per year. His decision to establish a plant in Sri Lanka is due to access to the local market for natural rubber, as well as a favorable geographic location - from the port of Hambantota, finished products can be quickly and easily delivered to the markets of South Asia, the Middle East and Africa. Earlier this year, Shandong Haohua Tire announced a $450 million investment in Sri Lanka.