Yongsheng Rubber Group's Saudi tire project landed

The internationalization of China’s tire manufacturing industry has taken another leap forward! Recently, the Saudi Silk Road Industrial Services Co., Ltd., a joint venture between Guangzhou High-Tech Zone Investment Group Co., Ltd. and Saudi Arabia, signed a Conditional Investment Agreement (CIA) with the Royal Commission of Jazan. This marks the official launch of the Saudi Tire Project, with the participation of Shandong Yongsheng Rubber Group Co., Ltd., in the Jazan Industrial Cluster.

A Benchmark for Chinese Expertise and Global Cooperation

The Saudi Tire Project was initially planned as a collaboration with an Indonesian enterprise but ultimately chose China’s Yongsheng Rubber Group for its superior technological capabilities and extensive market experience. This decision highlights the growing influence of Chinese tire enterprises in the global market and underscores Yongsheng Rubber Group’s leading role in strategic internationalization.

As a key project under China’s Belt and Road Initiative, the China-Saudi production capacity cooperation is spearheaded by Guangdong Province and Ningxia Autonomous Region, with Guangzhou High-Tech Zone Group as the implementing body. Using Saudi Arabia’s Jazan as a hub, the initiative aims to bolster economic development across the Kingdom. In December 2023, China and Saudi Arabia established a "comprehensive strategic partnership," creating a broader platform for business collaboration. Jazan Industrial Cluster has become a model of cooperation, attracting over $21.3 billion in Chinese investments and driving regional economic growth.

Yongsheng Rubber Group: A Pioneer in Global Expansion

Since its establishment in 1986, Yongsheng Rubber Group has had several well-known brands, among which the DOUPRO brand has become a leader in China's tire industry. In 2024, the company plans to invest hundreds of millions of dollars in factory upgrades and initiate the construction of its Industry 4.0 factory to meet increasing market demand and enhance product quality.

Yongsheng's "4+2+2" strategic layout demonstrates its global ambitions:

Domestic: Development of four major factories to optimize production capacity.

International: Plans to establish factories in Europe and Latin America to expand market coverage.

Innovation: Establishment of technical research centers in Asia and Europe to enhance innovation and ensure a stable global supply chain.

Saudi Tire Project: A New Chapter in the Middle East

With a total investment of $1.04 billion, the Saudi Tire Project will establish a production line with an annual capacity of 17 million tires, making it one of the largest tire manufacturing bases in the Middle East. This milestone not only marks a significant achievement in China’s “go global” strategy but also sets a benchmark for win-win cooperation between China and Saudi Arabia.

The project is expected to significantly boost the global competitiveness of Chinese tire enterprises while injecting new vitality into Saudi Arabia’s tire industry and contributing to regional economic development.

Looking Ahead

Yongsheng Rubber Group’s global expansion reflects the broader journey of Chinese manufacturing on the international stage. The successful launch of the Saudi Tire Project is not only a new starting point for the company’s growth but also a testament to the deepening cooperation between China and Saudi Arabia. As Yongsheng continues to expand its presence in international markets, it is poised to elevate Chinese tire brands to greater prominence on the global stage.