Sentine Announces Investment and Construction of Third Overseas Base

October 8, Sentine (002984) announced that the board approved the proposal to invest in and build a high-performance sedan and light truck radial tire project in Turkey. The project plans to form a joint venture with Turkey's tire distribution leader TATKO Group, with a total investment of $272.82 million (approx. 1.824 billion yuan), a designed annual capacity of 7 million tires, and a construction period of 18 months. This is the third overseas base following Thailand and Morocco, and Sentine's global layout takes another key step.

Tariff-Free Direct Access to EU, Location Considered Golden

Although Turkey is not an EU member, the EU-Turkey industrial goods customs union has been implemented since 1996. Industrial finished goods freely circulating within Turkey can enter the EU market duty-free with an A.TR certificate. Project products fully comply with this tax-free clearance policy, and expenditures such as equipment investment benefit from this.

Turkey is located at the junction of Europe and Asia, guarding the shipping passages of the Black Sea and the Mediterranean, and is the EU's fifth largest goods trading partner. In 2025, EU-Turkey goods trade volume exceeded 200 billion euros, and local automotive industry exports reached 41.5 billion dollars, ranking as the country's top export industry. Ford, Toyota, Hyundai, and Renault all have factories in Turkey, with about 1,100 parts supporting enterprises. The new factory can serve the replacement tire market, and also has the opportunity to develop OEM business nearby, with significant logistics cost advantages.

Manufacturing and Channels: A Two-Way Collaboration

In terms of capital structure, Sentine and its wholly-owned subsidiary hold 90.1% (approx. $245.81 million), TATKO holds 9.9% (approx. $27.0092 million), funds are self-raised, invested in stages, not affecting existing main business.

Partner TATKO was founded in 1927 and is one of Turkey's largest independent multi-brand tire distributors. Channels cover 81 provinces and 850 sales points nationwide, and possess export channels towards the Balkans and Central Asia. Sentine contributes intelligent manufacturing and overseas operational experience, while TATKO brings local channels and market insights. After project production, the OEM and replacement tire markets can be promoted simultaneously, significantly reducing overseas development risks.

400 People Process 7 Million Tires, Profitability Significant

The feasibility study report shows the entire factory employs only 400 people, equivalent to an average annual production of 17,500 tires per person. Five systems, including smart central control, production execution, logistics warehousing, inspection scanning, and scheduling warning, run through the entire process from material feeding, mixing, molding to vulcanization and warehousing. This system has been verified and proven in the two factories in Thailand and Morocco; this is a replication of the mature model.

Calculations show that after the project reaches capacity, normal operating years are expected to achieve operating revenue of $204.62 million, net profit of $42.11 million, net sales margin 20.58%, and break-even point only 39.75%.

Perfecting the "833 Plus" Global Layout

After the Turkey factory is established, it will form a synergy with the Thailand and Morocco bases, covering the three core markets of Southeast Asia, North Africa, and Eurasia. It will flexibly respond to trade policy changes in different regions and ensure stable delivery of global orders. This investment is also a concrete practice of Sentine implementing the "Belt and Road" initiative, creating jobs locally and perfecting the automotive parts supply chain.

For Chinese tire enterprises, global competition is shifting from pure exports to "Overseas Manufacturing + Local Services". Relying on the Eurasian hub capacity node, a mature intelligent manufacturing system, and localized channel resources, Sentine is expected to take the initiative in the regional market and continue to consolidate its status as a global pioneer of Chinese tires.