(Yicai Global) Dec. 11 – Shares of China’s Sailun Jinyu Group surged to an all-time high today after the Chinese tire maker said that it will expand its production in Vietnam.

Sailun's stock price rose by 9.8 percent to CNY7.82 (USD1.20) by noon. The shares are almost 20 percent up this year.

The tire manufacturer will build a new plant in Ho Chi Minh City with an annual production capacity of 3 million semi-steel radial tires, 1 million all-steel radial tires, as well as 50,000 off-the-road tires, the Qingdao-based firm said in a statement published over the weekend.

The factory is expected to be ready after 36 months of construction. It should bring CNY2.8 billion (USD431.8 million) in revenue and CNY604 million (USD93.1 million) in net profit to its parent every year.

Sailun started manufacturing tires in Vietnam in 2013. It formed a USD280 million joint venture with US Cooper Tire & Rubber in the Asian country in 2019.

Editor: Emmi Laine