Oleis Invests 20 Million to Unlock 7.5 Million Tire Production Capacity

Recently, the motorcycle tire factory of Hubei Oleis Tire Co., Ltd. officially opened, marking this established enterprise with all-steel tires as its main business officially entering the profitable two-wheeler tire sub-market.

20 Million, Zero New Land Acquisition: Old Warehouse Transformed into Tire Factory

The project is located in the existing factory area of Yangxin Economic Development Zone, with a total investment of 20 million yuan. The biggest highlight is "zero new land acquisition" -- converting the existing finished goods warehouse covering over 18,000 square meters into a brand new two-wheeler tire production workshop, effectively activating existing factory buildings and supporting facility resources.

After reaching full production capacity, it will form an annual production capacity of 1.5 million motorcycle tires and 6 million electric vehicle tires, with a combined annual capacity of 7.5 million tires.

In terms of equipment, the new production line introduces extruders, three-roll calenders, twin-screw extrusion systems, molding machines, hydraulic vulcanizing machines, and other professional core equipment, and is equipped with high-precision testing systems and intelligent management systems.

Cost Accounting for One Tire: 30 RMB In, 150 RMB Out

Oleis' layout in the two-wheeler tire sector is backed by a clear profit margin. According to relevant company officials, the cost per two-wheeler tire is about 30 yuan, with a market selling price reaching 150 yuan, leaving considerable profit space. Meanwhile, demand is strong in Southeast Asian countries such as Vietnam and Thailand, with broad market prospects.

Against the backdrop of high raw material costs in the current tire industry and "losing money on every all-steel tire sold", extending to the high-margin two-wheeler tire niche has become a realistic choice for small and medium-sized tire enterprises to break out.

Completing the Product Matrix on Top of the Main Business

Oleis Tire was established in 2012, headquartered in Yangxin Economic Development Zone, Huangshi City, Hubei Province. It has currently formed a product system covering multiple categories such as all-steel radial tires, engineering tires, and agricultural tires.

The opening of this motorcycle tire factory is another key layout for the enterprise to extend into the civilian two-wheeler tire field on the basis of consolidating its all-steel tire main business, further perfecting the product matrix.