An inclusive idealist. I am a Masters graduate from the University of Westminster. I’ve read over 1000 books, traveled to every province in China as a backpacker, and volunteered with several NGOs in Southeast Asia. I have many years of working experience as a journalist in the auto industry.
On 30 December 2022, Sailun held a general meeting of shareholders to elect members of the sixth board of directors. Liu Yanhua was elected chairwoman of the tyre manufacturer, and Xie Xiaohong became president of Sailun. Liu Yanhua’s resume shows that she worked in two accounting firms before coming to Sailun. Prior to being elected as the chair, Liu Yanhua was the vice chairwoman, executive vice president and chief financial officer of Sailun.
Goodyear is investing US$200 million (about 1.37 billion yuan, £170 million, 190 million euros) in its Cooper Kun Shan tyre factory. Following the latest investment, the total investment of the Cooper Kun Shan plant is expected to reach $500 million (about 3.42 billion yuan, £410 million, 470 million euros).
Luo Yongli, deputy general manager of the company, recently told a briefing that he is optimistic about the operation of Cheng Shin in 2023. In the past, Cheng Shin has reportedly significantly reduced capital expenditures to combat adversity in the operating environment. But with the overall situation expected to improve, the tyre maker will start expanding production capacity, including launching a 40 million tyre capacity expansion plan at factories in mainland China.
In 2022, several significant events took place in China’s tyre industry. These things had a profound impact on the tyre industry not only in 2022, but for a long time.
On 28 December 2022, the Customs Tariff Commission of China’s State Council issued an announcement stating that from 1 January 2023, import tariffs on some commodities will be adjusted. In 2023, the products that can still enjoy preferential tariffs are retreaded tyres for aircraft. As in the previous year, such products will be subject to a provisional import duty of 4 per cent. Under normal circumstances, Chinese customs should impose a 20 per cent tariff on retreaded tyres for aircraft.
On 30 December Linglong announced that it would adjust the construction of its seventh production base in China. The construction location of the project was changed from Lujiang, Anhui, to Lu’an, Anhui. At the same time, the tyre manufacturer’s Lu’an factory is preparing to build a project with an annual output of 14 million sets of high-performance radial tyres and a project to regenerate via retreading and material recovery 30,000 tons of waste tyres. In the original design, Linglong’s seventh factory in China was intended to have an annual production capacity of 14.6 million sets of radial tyres.
According to export data released by China Customs, China exported 40.72 million “new pneumatic rubber tyres” (a term that includes all pneumatic tyres including bicycles as well as enginen-drive tyre products) in November. The exported tyres weighed 550,000 tons and were worth 9.88 billion yuan (about £1.18 billion; 1.33 billion euros).
At a dealer meeting held by Aeolus on 16 December 2022, Wang Feng delivered a speech as “Chairman of China National Tire & Rubber Co., Ltd. (CNRC) and Chairman of Aeolus”. Wang Feng emphasised that in 2021, the sales revenue of Aeolus, Prometeon Tyre Group S.r.l. (PTG), and Pirelli ranked fifth in the world and first in China. The sales revenue of Aeolus and PTG ranked among the top three in China’s domestic industry.
Recently, China’s largest tyre manufacturer Hangzhou Zhongce Rubber (ZC Rubber) has taken an important step in the stock market listing process: The China Securities Regulatory Commission (CSRC) received the IPO application of ZC Rubber. Next, CSRC will review the materials submitted by ZC Rubber. If it passes the audit, ZC Rubber will become a listed company.
Guizhou Tyre’s wholly-owned subsidiary Advance Investment plans to invest 25.5 million yuan (about £3 million pounds; 3.45 million euros) in Qingdao Win-Win Industry Fund.
On December 10, Sentury announced that the Public Security Bureau of Danzhou City, Hainan Province is investigating Xu Huashan, director and chief financial officer. The tyre manufacturer said the investigation relates to Xu Huashan’s work prior to her appointment at Sentury, and that it will not significantly or adversely impact Sentury’s daily business decisions and operations. It is reported that Sentury has arranged for director and general manager Lin Wenlong to perform the duties of the CFO.
At the end of 2022, China is gradually ending epidemic prevention and control, and the country’s tyre industry is keen to usher in the benefits. However, many professionals are still considering how to survive adversity during the same period, asking whether the future offers reasons for optimism. There is no doubt that we are at an important moment of historical change. With 2022 about to pass, Tyrepress China looks at the state of the business following a year of flux and crisis through the prism of ten key terms.
Recently, several tyre manufacturers have released recruitment information, which is not enough to be strong evidence that China’s tyre industry is gradually recovering. However, the recruitment information shows that some Chinese tyre companies have not hesitated in the challenging environment.
In 2022, China’s tyre industry has already carried out multiple rounds of the layout around new energy vehicles. Focusing on the product of passenger car tyres, seizing the new energy vehicle tyre market seems to be an essential strategy for significant tyre manufacturers to participate in future competition.
Recently, the National Development and Reform Commission and the Ministry of Commerce released the “Catalogue of Industries for Encouraging Foreign Investment (2020 Version)”. The Chinese government hopes that foreign businessmen will invest in the industries listed in the document. The trade encouragement catalogue currently in use in China was released in 2020, and the 2022 version will come into force on 1 January 2023.
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