Aeolus conducts additional share issue

Aeolus Tyre will issue shares to specific investors in order to raise 300 million yuan (42 million dollars), which will be invested in the currently implemented project to launch new production of ultra-large tires at the plant in Jiaozuo (Henan Province, China).

The company notes that the raised funds will be used both to increase the production capacity of radial OTR tires and to implement initiatives to improve production efficiency.

Earlier it was reported that the total cost of the project will be 1.47 billion yuan (210 million dollars) and will allow increasing the capacity of the modernized plant by 20,000 OTR tires per year. Currently, the enterprise in Jiaozuo can produce up to 13,000 tires for special equipment and 1.2 million truck tires per year.

As part of the project, Aeolus is collaborating with Beijing University of Chemical Technology and other scientific institutions, which will help develop technologies for the production of tires with a diameter of 49 to 63 inches. The company emphasizes that the new technologies will allow meeting the growing demand in the global market and competing with the three main players in the UHP tire segment.

It is expected that after reaching the project capacity, the new project will increase Aeolus' annual sales by 1.56 billion yuan (220 million dollars).

Photo: parkworld.net