Zhongce Rubber Group Co. Ltd (ZC Rubber) wants to build a tire factory in Mexico to serve the North American market.
The tiremaker says it is looking to establish a 6.5 million square-foot plant in Saltillo, Mexico, along with an on-site warehouse to serve the North American market "to improve (our) local distribution network and optimize cost efficiency."
In Saltillo, ZC Rubber says the plant would be about 150 miles from the U.S.-Mexico border, which "makes it an ideal choice to meet the dynamic demands of both the Mexican and North American markets."
In a statement from the tiremaker, Henry Shen, vice president of ZC Rubber, said, “Our plan to open a tire factory in Mexico demonstrates our commitment to meeting the growing demand for high-quality tires in the region. While we explore this opportunity, we remain focused on our customers’ needs and operational efficiency by setting up a complete local distribution network.”
ZC Rubber says it envisions the new plant as a "future factory concept," which will focus on "environmental sustainability, energy efficiency, high automation and overall operational efficiency."
If the plan proceeds, ZC Rubber said construction of the factory could be completed within about 12 months. It would also mark "a significant milestone" for the company's global expansion, as well as its role "as a major player in the global tire industry, allowing the company to provide high-quality tire solutions to customers in the region."
The possible expansion into North America comes soon after ZC Rubber announced plans to build another plant in Indonesia. The company's newest factory in China produced its first passenger tire in late 2023.