5X strategic plan: Jiangsu General’s rise

In early September 2023, Jiangsu General appeared at The 18th China International Tire Expo (CITExpo 2023) at the Shanghai World Expo Exhibition & Convention Centre. At the exhibition site, the staff of the tyre manufacturer told Tyrepress China that most of the customers they received this time were from Europe, the Middle East, Southeast Asia, Russia and South America.

As a tyre company that has developed rapidly in recent years, Jiangsu General has built three production bases in Wuxi, China, Thailand and Cambodia, and plans to build a fourth tyre factory in Baotou, Inner Mongolia, China. In 2022, Jiangsu General’s revenue was 4.12 billion yuan (approximately £460 million; €530 million), ranking 34th in the 2022 global tyre manufacturer rankings released by Tyrepress.

Exhibiting a variety of products

Jiangsu General exhibited KTX816, CAT8, EV1 and other products at CITExpo 2023, covering short and medium-distance heavy-duty tyres, engineering tyres, agricultural machinery tyres, new energy vehicle tyres, motorcycle tyres and different segments.

Among them, KTX816 is a medium-to-long-distance product, and its unique tread design can ensure that this product has wear resistance and comfort. CAT8 is a tyre suitable for off-road vehicles and has excellent wear resistance, grip and traction. EV1 is a new energy vehicle tyre with performance advantages such as comfort, safety, fuel saving and wear resistance.

A Jiangsu General salesperson at the exhibition told Tyrepress China that they had made appointments with about 60 customers before the show. In addition to meeting these customers who have made reservations, Jiangsu General’s overseas sales team also met many new users at CITExpo 2023. According to the tyre manufacturer, “On the first day of the exhibition, customers from the United States, Europe, Southeast Asia and other regions have expressed strong interest in Jiangsu General and reached cooperation intentions”.

Gradually realise the “5X strategic plan”

Jiangsu General is a subsidiary of Hodo Group. Since its establishment in 1995, Jiangsu General’s products have constantly improved, from the initial motorcycle tyres to bias tyres. In July 2004, Jiangsu General rolled out its first all-steel radial tyre in the Wuxi plant. In 2016, Jiangsu General was listed on the Shanghai Stock Exchange. In June 2017, Jiangsu General completed the research and development of semi-steel radial tyre products and officially entered the field. In 2018, the tyre manufacturer decided to invest US$300 million in building a tyre manufacturing base in Thailand. One year later, in December 2019, the first tyre rolled off the production line at the Thailand factory.

In June 2021, Jiangsu General said it would build a tyre manufacturing base in Cambodia. In March 2023, the first tyre rolled off the production line at the Cambodian factory. Two months later, Jiangsu General announced it would build a tyre factory in Baotou, China.

As a subsidiary of Hodo Group, Jiangsu General proposed the “5X strategic plan” in April 2021 to achieve five production bases and 5 R&D centres around the world and reach an annual production capacity of more than 50 million tyres. With factories in Wuxi, Thailand, and Cambodia put into production one after another and the preparation and construction of the Baotou base, Jiangsu General’s “5X strategic plan” has taken initial shape.

Tyrepress China learned that Jiangsu General would have the capacity to produce 23 million semi-steel radial tyres and 7.2 million all-steel radial tyres in 2023. In other words, Jiangsu General’s overall production capacity in 2023 has reached 30.2 million units. The Wuxi plant has a production capacity of 5 million all-steel radial tyres and 9 million semi-steel radial tyres. The Thailand factory can produce 1.3 million all-steel radial tyres and 9 million semi-steel radial tyres. The Cambodia factory has a production capacity of 900,000 all-steel radial tyres and 5 million semi-steel radial tyres.

It is worth noting that Jiangsu General’s expansion has not stopped. The information displayed by the tyre manufacturer shows that the Thailand factory will add 6 million semi-steel radial tyres and 1 million all-steel radial tyre production capacity. The Baotou factory under construction involves the production capacity of 1 million all-steel radial tyres and part of ROTR tyres.

Different responsibilities of two overseas factories

Southeast Asia is one of the earliest overseas markets developed by Jiangsu General. Later, this tyre company gradually opened multiple markets, such as the Middle East and Europe. In the 2022 annual report, Jiangsu General stated that (overseas markets) it would focus on the United States, Europe, and Southeast Asia.

After owning two overseas factories, Jiangsu General has greater flexibility when expanding overseas markets. At CITExpo 2023, a staff member told Tyrepress China that the product lines of the two factories are different and they target different needs.

Tyrepress China learned that the products produced by the Thai factory would mainly be sold to the United States and Europe. The tyres produced by the Cambodian factory will be sold to Brazil and other regions that have set up trade barriers for Chinese tyres. The staff member said “40-50 per cent” of the Cambodian factory’s products will be sold to Brazil. When the production capacity of the Thailand factory is insufficient, the products of the Cambodian factory will be supplied to the US market.

Tyrepress China learned that orders from Jiangsu General’s Thailand factory would be at total capacity soon. A news report in August showed that orders for the Thailand factory exceeded existing production capacity by more than 50 per cent. Among them, the factory’s orders for all-steel radial tyres in September were close to 200,000. The supply of products exceeds demand, which may be an essential reason why Jiangsu General expanded production at its Thailand factory and used products from Cambodian factories to fill the Thailand factory’s insufficient production capacity. The same news report showed that “the Cambodian factory also officially started production in May this year and has mass production and shipment. It is currently operating at full capacity and accelerating the ramp-up of production capacity”. It is reported that according to the plan, the Cambodian factory will be fully operational in the second half of 2024.

Focus on developing the European market in 2024

At the CITExpo 2023 site, Jiangsu General staff told Tyrepress China that unlike the traditional advantageous markets of Chinese tyre companies in the Middle East, Southeast Asia and Africa, tyre products in the European market tend to be high-end, and the threshold is relatively high. For Jiangsu General, it has always adhered to the mission of “Making Every Tyre a Masterpiece” in recent years. The emphasis on product quality has also allowed this tyre manufacturer to enter the European market.

Tyrepress China has learned that Jiangsu General plans to make the European market one of its main focuses in 2024 and achieve sales of 300,000 all-steel radial tyres. As for semi-steel radial tyre products, Jiangsu General staff explained: “Currently, Europe has not set up trade barriers for semi-steel radial tyre products. Therefore, selling semi-steel radial tyre products from Thailand factories to Europe is not cost-effective. The Thailand factory also does not have a dedicated production line for semi-steel tyres sold to Europe. Currently, domestic factories in China produce semi-steel radial tyre products sold to Europe.”

Flagship brand: Celimo

Jiangsu General Introduced the new Celimo brand (Photo: Scott Parker-Copestick/Tyre Industry Publications Ltd)

In the brand list Jiangsu General gave, Celimo is at the top of all brands. The brand’s range of products includes all-steel radial tyres, semi-steel radial tyres and ROTR tyres. The brands ranked after Celimo include Chituma, Qima and Tbbtires.

In addition, Jiangsu General believes that the advantages of the Celimo brand also include sustainability, rigorous product design, intelligent manufacturing, advanced manufacturing equipment, strict product testing, high-quality raw materials, and dozens of quality certifications based on customer and market needs. Based on these advantages, Jiangsu General’s customers choose to cooperate with the Celimo brand.

Among them, while focusing on sustainable development, Jiangsu General emphasises reducing carbon emissions and achieving social responsibility goals. The company says that its manufacturing process can reduce carbon emissions by more than 40 per cent. In artificial intelligence, the tyre manufacturer built a Manufacturing Execution System (MES) based on 5G and the Internet cloud and established an innovative and lean production management process.