Chinese tyre industry projects new in 2023

In 2023, Chinese tyre companies invested in a number of new projects. Tyrepress China’s analysis found that the once popular all-steel radial tyres (generally truck tyre products) have gradually experienced overcapacity, and the new projects increasingly focus on the production capacity of semi-steel radial tyres (car and light truck products). At the same time, Chinese tyre companies pay more attention to overseas projects. In addition, consistent with the trend in 2022, OTR tyres have become an essential focus of the Chinese tyre industry.

Semi-steel radial tyre production capacity surges

Several tyre manufacturers increased semi-steel radial tyre production capacity in 2023. In 2023, Michelin’s Shanghai factory launched an expansion project and is expected to increase its radial car tyre production capacity by 1 million to 9.5 million units a year by the end of 2026. In addition, the tyre maker’s Shenyang plant increased its car tyre radial production capacity after dismantling its truck tyre radial production line.

Cooper’s Kunshan plant has built a second-phase project. Its main products are high-performance radial silent tyres used in new energy vehicles. In addition to upgrading the original production line, the Cooper Kunshan factory is also preparing to build a workshop.

Not only foreign tyre brands but also local Chinese tyre manufacturers are actively expanding PCR production. Wanli plans to build its Guangzhou production base into a super factory with an annual output of 30 million semi-steel radial tyres. Jiangsu General decided to transform the all-steel radial tyre production line at the Wuxi plant in 2023 so that it can increase semi-steel radial tyre production capacity.

ZC Rubber has also modified its production capacity. The production line of the company’s 5G digital factory has been adjusted from 6.5 million sets of all-steel radial tyres to 25 million sets of semi-steel radial tyres.

Overseas factories receive attention

In 2023, overseas factories became a “favourite” option for many Chinese companies. Jiangsu General’s shift of investment to overseas bases is a persuasive example. In 2023, Jiangsu General terminated the construction proposals for two tyre factories in Anqing and Baotou and proposed expansion plans for the Thailand factory and the Cambodia factory. Among them, the Thailand factory will increase the production capacity of 500,000 all-steel radial tyres and 6 million semi-steel radial tyres, and the Cambodian factory will increase the production capacity of 3.5 million semi-steel radial tyres and 750,000 all-steel radial tyres.

In 2023, Jiangsu General was not only a tyre company that values overseas factories. The second phase of Huayi’s Thailand factory project involves a production capacity of 300,000 all-steel radial tyres. The first tyre rolled off the production line in August 2023.

In October 2023, Sailun decided to increase the production capacity of the Cambodian factory to 6 million semi-steel radial tyres. Jinyu restarted the semi-steel radial tyre project at its Vietnam factory.

In addition to expanding production capacity, tire companies also plan to build new manufacturing bases overseas. On December 30, 2022, Sentury stated that it was preparing to build a factory in Morocco involving 6 million high-performance cars and light truck radial tyres. In March 2023, Sentury purchased 20 hectares of land for its Moroccan factory. Shortly after the construction of its Moroccan factory started, Sentury stated that it would invest an additional US$193 million in the Moroccan factory to increase the production capacity of 6 million semi-steel radial tyres. In other words, the annual output of Sentury’s Moroccan factory will reach 12 million tyres.

Doublestar established a joint venture in Cambodia to build a tyre project with an annual output of 8.5 million units. The factory held a groundbreaking ceremony in May 2023. Sailun plans to develop its North American production base in Mexico. Haohua and Wanli announced in 2023 that they would build tire manufacturing bases in Vietnam and Cambodia, respectively.

OTR products remain popular

At the beginning of 2023, Guizhou Tyre stated that it had terminated the all-steel radial tyre project and invested the funds raised in an off-the-road (OTR) tyre production line with an annual output of 380,000 units. As China’s all-steel radial tyre market shows signs of saturation, several tyre companies are beginning to find another way out. OTR products have become a focus of the Chinese tyre industry in recent years.

In January 2023, Sailun announced an investment plan to upgrade the OTR production line of the Qingdao factory and adjust its product structure. After the upgrade is completed, tyres with specifications of 49 inches or above (including 49 inches) will replace the original products. A few months later, Sailun’s factory in Weifang, Yong’an Rubber, launched an engineering tyre project with an annual output of 70,100 tons.

In February, Chaoyang Long March launched the OTR project. The tyre manufacturer is preparing to build a new project with an annual output of 200,000 sets of OTR tyres.

In addition, the Double Coin Jiangsu factory is preparing to transform the existing production line and improve the production capacity of OTR products. After the project is completed, the company will eliminate 300,000 all-steel radial tyres and increase the production capacity of 80,000 OTR tyres.