Hubei Aulice Tyre to Establish First Overseas Manufacturing Plant in Tanzania

Hubei Aulice Tyre, a renowned Chinese manufacturer specialising in truck and off-road tyres, has unveiled plans to build its first overseas manufacturing plant in Tanzania. This strategic move marks a significant milestone in the company's global expansion strategy and is set to strengthen its presence in the African market.

Hubei Aulice Tyre to Establish First Overseas Manufacturing Plant in Tanzania
Hubei Aulice Tyre to Establish First Overseas Manufacturing Plant in Tanzania
August 30, 2024

Plant Location and Investment

The new plant will be situated in the Kibaha District of the Pwani region in Tanzania. The project is estimated to cost 700 million yuan (approximately €88 million), with 500 million yuan being financed through bank loans. This investment underscores Aulice’s commitment to expanding its footprint beyond China and tapping into the growing demand for tyres in Africa.

Production Capacity

Named Baha Tyre Ltd, the facility will have the capacity to produce 1.2 million units of all-steel radial truck tyres annually. This production volume is expected to cater to both local demand and export needs, further enhancing Aulice’s competitive edge in the global tyre market.

Strategic Importance

This Tanzanian plant will be Aulice’s first wholly-owned subsidiary outside China, highlighting the company’s ambition to optimise its strategic layout on a global scale. The new facility is set to bolster Aulice's competitiveness and support its rapid expansion plans. By establishing a presence in Tanzania, Aulice aims to better serve its existing markets in Africa and create a strong base for future growth in the region.

Company Background

Founded in 1998, Hubei Aulice Tyre has grown into a significant player in the tyre industry. The company currently operates two production units in Huangshi and Xianning, China, with a combined daily output of 12,000 truck tyres and 2,500 off-road tyres. Aulice’s product portfolio includes brands such as Aulice, Vanlustone, and Aosowing, which are primarily exported to markets in Southeast Asia, South America, North America, and Africa.

While the announcement did not specify a timeline for the completion of the Tanzanian plant, this development represents a major step forward in Aulice’s long-term global strategy.