Seeking for sustainable development of Guizhou tire a investment 7.1 billion implementation of off-site technical renovation

In order to seek sustainable development of space, Qian Tire A (000589) today announced that the proposed in Guiyang Xiuwen County Zha Ding Village New requisition of 1.4667 million square meters, the implementation of "High-performance radial tire production line off-site technical transformation Project", the total investment of about 7.109 billion yuan.　　After the completion of the project, the company's capacity will be significantly increased, high-performance radial tire total capacity of 16.8 million/year. Public data show that the current tire capacity of Guizhou Tire has reached 5.5 million/year, of which the capacity of the radial load Meridian 2.9 million/year, the 2011 issue of the allotment of funds to invest in the project "annual output of 1.1 million high-performance All-steel radial tire production line technical renovation project" as planned to put into production, Company All-steel Radial Tire production scale will be increased to 4 million/year, the total output can be raised to 6.6 million/year.　　And the company's existing 423400 square meters of plant after years of expansion, building coefficient has reached 65%, volume rate of 0.8, seriously restricting the company's further development. To this end, Qian tire A in Guiyang Xiuwen County Zha Ding Village New requisition of 1.4667 million square meters, the construction of High-performance radial tire production line 4 and corresponding ancillary public and auxiliary facilities. The project construction period of 6 years, in three period of implementation, the total investment of 710,900 yuan, of which fixed assets investment of about 574,000 yuan.　　The construction funds are to be solved through the direct financing of capital market, the self-financing of enterprises and bank loans. After all the projects have been completed and put into production, annual new High-performance radial tire capacity of 12.8 million, of which the full steel truck radial tire 2.5 million, half steel radial tire 10 million, all steel engineering meridian tires and all steel agricultural meridian tires each 150,000, so that the company's High-performance radial tire total capacity of 16.8 million/year, The meridian rate reaches 86.6%.　　The new annual sales revenue is expected to be 9.056 billion yuan, the average annual profit of 1.434 billion yuan. The first phase project of the technical renovation project of Guizhou Tyre A is comprised of two subprojects, respectively, which is an annual output of 1.2 million High-performance radial truck tire production line and an annual output of 50,000 high-performance whole steel Engineering radial Tire Technical renovation project. The new requisition land of 392,200 square meters for the construction of the truck Tire project includes 1 high performance radial tire production line and corresponding auxiliary facilities. Project construction period from 2011 to 2012, the total investment of about 1.795 billion yuan. After the project is completed and put into production, the annual production capacity of the new High-performance radial tire 1.2 million, so that the company's High-performance radial tire capacity of 5.2 million/year, the meridian rate of 66.7%.　　Annual sales revenue is expected to be 2 billion yuan, the average annual profit of 233 million yuan. All steel Engineering Tire Project requisition Land 327,000 square meters, new acquisition of High-performance All-steel Radial tire production and testing equipment, project construction period from 2011 to 2012, the total investment of 709 million yuan. After the project is completed and put into production, the annual production capacity of the new High-performance All-steel radial tire 50,000, so that the company's High-performance radial tire capacity of 5.25 million/year, the meridian rate of 66.9%. ExpectedNew annual sales income of 790 million yuan, the average annual profit of 76.687 million yuan.