Sailun Group Co said its wholly-owned subsidiary Sailun (Vietnam) Co., Ltd. plans to invest in constructing the third phaseof  the plant in Ho Chi Minh City, Vietnam.

For the project, the company will invest 3.01,053 million yuan, of which: construction investment is 2.49513 million yuan, said the company in a statement in the Shanghai Stock Exchange.

The expansion will add an annual output of 3 million semi-steel radial tyres and 1 million All-steel radial tyres and 50,000 tons off-road tyres.

This project's construction includes mixing workshop, tire production workshop, 22KV general power distribution Stations and warehouses.

Sailun added that it would take 36 months to complete the project.

The funds required for this project will be solved by Sailun (Vietnam) through self-raising and loans from financial institutions. The project is expected to achieve an average annual operating income of 2,847,060,000 yuan, and an average annual net profit of approximately 60,395 Ten thousand yuan.