Sailun Group, which is mainly engaged in the research and development, and manufacturing and distribution of tires, plans to build a super factory in Qingdao West Coast New Area.

The inside of a Sailun Group tire products inventory warehouse [Photo/Guanhai News]

The super factory will receive a total investment of about 17.48 billion yuan ($2.61 billion).

Sailun plans to build a tire project with an annual output of 30 million sets of high-performance radial tires and 150,000 metric tons of off-road tires in the Dongjiakou area.

Based on the first industrial internet "rubber chain cloud" in the rubber industry, the company will use new intelligent production and testing equipment to manufacture high-performance tire products.

The company will also build a new material project with an annual output of 500,000 tons of functional new materials.

According to Sailun, its tire business will achieve an average annual revenue of 21.9 billion yuan and an average annual net profit of 2.96 billion yuan when the new project is put into operation.

The office block of Sailun Group [Photo/Guanhai News]

After the new material project is completed, it is expected to achieve an average annual operating income of about 5.13 billion yuan and an average annual net profit of about 395 million yuan.

The two projects will inject vitality into the company's high-quality development, according to the company's website.

In 2021, the operating revenue of Sailun was 17.99 billion yuan, the highest since its listing, and the net profit attributable to the parent company during the same year was 1.31 billion yuan.