Twice as much in half the time – Giti’s plan to penetrate European tyre market in five years
Goodyear and Michelin penetration into Europe took a few decades, Bridgestone more than halved that, Hankook and Kumho did it in about 12 years, Giti Tire want to do it in five. The largest Chinese manufacturers are growing quickly, they have their sights set breaking into the US and Europe, and what’s more they plan to do it quicker than any company has before. Speaking to Tyres & Accessories, Dr Enki Tan predicted that Giti Tire will soon be known as the manufacturer to emerge from China. Giti is already a global scale operation, with 2007 sales totalling the best part of $2 billion. And while the fact that the group’s holding company is registered in Singapore means it can’t be officially be called a Chinese domiciled manufacturer, semantics can’t stop Giti from being the largest manufacturer of tyres in China. The company’s biggest production base is in Hefei, Anhui province (not a long way from where Continental recently announced it will build a Greenfield site of its own). The manufacturing complex here employs around 6400 staff and covers some 1.11 million square metres – only 350,000 m2 of which is currently covered. At the end of 2007 production totalled 34,000 passenger/light truck, 6500 truck and bus, and 4000 bias tyres per day.
Continue Reading“Smuggled” Tyres Trouble Pakistan Retail Market
Tyre retailers in Lahore, Pakistan have noticed a sharp increase in the number of “smuggled” tyres from India, China, and Dubai, causing putting locally produced brands at a disadvantage, according to The Post. One report suggested that the illegal business continues unchecked in the city, “perhaps in connivance with the law-enforcing agencies”. When asked, Bismillah Tyres at Ravioli Cinema told The Post that in earlier days, the profit margin was not as good but now, “we are doing a roaring business. It is because every other family has their own car,” he said.
Continue ReadingSentaida International Acquires ZT Wholesale
The Zisser Tire Company has entered into an agreement with Sentaida International for the purchase of the Zisser Tire Wholesale operation. The acquisition by Sentaida International will be limited to Zisser’s wholesale division, and the transaction is scheduled to be completed on November 21. Sentaida International, part of the China based Sentaida Group, is currently headquartered in Southern California and owns the private brands Sentaida and Delinte. It also acts as the agent for a number of brands in the US, including Linglong UHP.
Continue ReadingBekaert Acquisition Talks in Russia Abandoned
Following several months of negotiations Bekaert has opted to withdraw from talks with Russian firm ZAO Uralkord regarding a possible takeover. The Russian manufacturer, located in the industrial city of Magnitogorsk, produces steel cord products for domestic tyre manufacturers and was viewed as a suitable vehicle through which the Belgian firm could strengthen its position in Russia. As recently as late July Bekaert CEO Bert De Graeve told media that the group was hopeful of closing a deal by the end of the year, adding that about 50 million euros had been offered for the purchase of Uralkord. Despite this optimism, the deal fell through within three months of De Graeve’s announcement. The reason for this, Bekaert outlined in a statement, is that during “the course of the difficult and protracted negotiations, it became clear that no agreement could be reached with the current shareholders of ZAO Uralkord that would meet Bekaert’s criteria for pursuing its strategy of sustainable profitable growth in Russia.”
Continue ReadingNokian Tyres Confirms Kazakhstan Negotiations
Nokian Tyres has officially confirmed the rumours that it is negotiating a factory project in Kazakhstan. The company reports that negotiations are ongoing, and as of August 24 no agreements have been made. Nokian aims to finalise the negotiation project before the end of the year. According to previous information supplied to Tyres & Accessories, Nokian tyres may be manufactured at the US$200 million factory being built in the national capital by Kazakhstan’s Ordabasy Corporation. This new plant will have an annual capacity of 4 million tyres when in full production.
Continue ReadingIran Designs Nano Tyres
Irans Polymer and Petrochemical Institute incorporated “highly friction-resistant” nanotechnology into the development of vehicle and aircraft tyres. According to a Meridian Institute report, Iranian researcher Mohammad Karrabi said: “In this method, the frictional resistance of tyres has been increased through calculating the mechanical characteristics of them. Lower rolling resistance and higher frictional resistance will lead to less fuel consumption.” He also said that the use of nanotechnology will help Irans automobile manufacturers compete in the market. The project, which was launched with support from the Presidential Office last year, will be completed by next year.
Continue ReadingKumho Consolidating in China
(Rubber Asia/sg) The aggressive forays of Korean tyre major Kumho into China, carried out with a view to establishing the country as its major overseas production base, will go a long way towards realising the company’s vision to emerge as the world’s 5th largest tyre maker by 2015. The booming Chinese tyre market is to become the most important overseas production base for the Kumho Tire Company, if its ongoing activities, the latest being the recent launch of its US$220 million wholly-owned radial truck/bus project in the Nanjing Economic and Technical Development Zone, are any indication. This is the Korean’s fourth major Chinese project, and the company hopes to ultimately produce 1.4 million tyres there annually. The groundbreaking ceremony for the proposed plant was held in May, and the first phase of the project, with an installed capacity of 300,000 tyres per year, is expected to go on stream by June 2008.
Continue ReadingHankook’s Explosive Growth
With so much recent media coverage of Hankook’s European activities and new state of the art facility in Hungary, it is easy to forget that Europe is only one market in which the South Korean tyremaker has plans. And while those living in Europe will naturally pay more attention to activities taking place close to home, Hankook is by no means neglecting its Asian markets, and is in fact paying particular attention to China. Recently Tyres & Accessories was given the opportunity to interview Hankook global CEO Suh Seung Hwa and find out more about the company’s aims for the large and still growing Chinese tyre market. “China is a vibrant market,” declared Mr. Suh when asked if Hankook’s recent activity in Europe signalled any shift in priorities. He added that the tyremaker expected a large increase in sales from its Chinese operations in 2007. Between 2002 and 2004 the Chinese tyre market experienced what Mr. Suh called “explosive growth,” and by 2006 the passenger car tyre market was still increasing by more than 15 per cent per year, the largest growth of any market the tyremaker participates in.
Continue ReadingGiti Tire Europe – Link Into Europe
Since several years Chinese tyre manufacturers are active on the European tyre market. Although their commitment has been increasing over these years until today there has not been a tyre manufacturer from China that has founded its own representation in Europe which is for example different in the US. Giti Tire Europe B.V. is established in The Netherlands and does not only represent Giti Tire from China but also Gajah Tunggal from Indonesia which belongs to the same corporate group. In doing this, Giti Tire Europe acts as a link between wholesalers such as Romney International, Reifen Gundlach or Doumerc Pneus and the tyre manufacturers Giti Tire China and Gajah Tunggal. Secondly, it acts as an antenna into the European market that detects and collects information and forwards them to China and Indonesia. And thirdly, it is assigned to increase the general coverage of the European markets. Under the direction of well-experienced managers from throughout the continent Giti Tire Europe in particular looks towards the East where markets have an excellent chance to be developed and it also looks towards European OE customers.
Continue ReadingOverview: Qingdao Doublestar Tire Industrial
The Qingdao Doublestar Tire Industrial Co., Ltd., which is based in Qingdao (Shandong province), is one of several Chinese tyre manufacturers undergoing strong expansion. The company was founded in 1996 and belongs to the Double Star group that mainly produces the Doublestar brand, but also a secondary brand called Huaqing.
Continue ReadingOfficial Ceremony Marks Opening of Yokohama India
The Yokohama Rubber Co. took a further step into the Indian market on July 27 when it officially marked the opening of its new subsidiary, Yokohama India. Company, industry, governmental and media representatives assembled at a hotel in New Delhi commemorate the occasion. Yokohama Rubber board director and senior managing corporate officer Takashi Sugimoto and board director and corporate officer Tooru Kobayashi represented the parent company at the ceremony. Prior to this year Yokohama Rubber marketed passenger car tyres in India through its Singapore based tyre distributor. The transition to an India based operation began with the founding of Yokohama India in April 2007, and from now onwards the company plans to transfer sales activities to the new subsidiary, from where it will implement its own independent sales strategy. The company reports that Yokohama India will kick things off with an emphasis on the high performance passenger car market, an area in which the company believes to be a particular area of strength. This initial activity will include the Indian launch of the company’s premium ADVAN brand and other high-performance tyres and an intense supporting advertising campaign through car magazines and other media. From here Yokohama India will broaden its focus to the wider market.
Continue ReadingAn Untapped Resource? Nokian’s Kazakhstan factory bid
With news of Chinese product recalls and revised tax rules, some people are looking elsewhere to source their tyres. But if a tyre manufacturing colleague said they were about to expand capacity by entering into an off-take agreement in Kazakhstan, they would probably be met with either a blank “where-exactly-is-that face?” or a stream of Borat-related quips. Joking aside, Nokian Tyres, a company that has made a real success of its niche market approach, has reportedly taken the plunge and broken ground on $200 million-worth of production capacity in Astana, the former Soviet country’s capital city. Although Nokian staff have not immediately confirmed their involvement in the deal, it would see Nokian gain another low-cost production base to supplement its very successful St Petersburg, Russia operation and - just as importantly - a strong and growing market in which to sell its high quality winter tyres. The winter conditions in Ukraine and Kazakhstan are harsh, making studded tyres popular.
Continue ReadingChinese Exhibition Well Positioned for Growth
The fourth China International Rubber & Tyre Industry Exhibition 2007 (RTF), held between May 11 and 13 in the city of Qingdao, Shandong Province, was the largest in the show’s history. Sponsored by the Shandong Provincial Rubber Industry Association and organised by Qingdao Jinnuo Exhibition Co. Ltd., RTF has become China’s third largest tyre and rubber exhibition, attracting 120 exhibitors and 4,200 attendees from around the world. Some of the exhibition’s major participants included Lanxess, Sartomer, Daikin, Schill+Seilacher, NDC, U-Can, Instron, Berstorff, Mesnac, Triangle, Linglong, Doublestar and Sailun. The key events at RTF 2007 included a number of high-profile conferences held in conjunction with the exhibition - the Chinese Rubber Industry Information Release Conference, organised by the Shandong Provincial Rubber Industry Association, and the Qingdao International Rubber-Plastics Conference, organised by Qingdao University of Science and Technology. These events attracted nearly 600 industrial industry professionals.
Continue ReadingSri Lanka Tyremaker Bids to Re-invent the Wheel
(Akron/Tire Review – The International News (Sri Lanka) One of the world’s biggest solid tyremakers is trying to double its turnover and turn Sri Lanka into a key exporter of rubber products.Raw rubber has been the country’s second largest export commodity after tea, but a Belgian-Sri Lanka joint venture is trying to re-invent the way wheels are made and make the island a global hub for tyres. Solideal Loadstar is one of Sri Lanka’s best-kept secrets and its biggest exporter, accounting for just over two per cent of the nation’s near seven billion dollar export earnings. “In the world market, we now control 20 per cent in the solid tyre and about five per cent in the industrial tyre markets,” chairman Nihal Jinasena told AFP. “Any fool can make a tyre,” said Jinasena, whose family controls 40 per cent of Solideal Loadstar. “What is difficult is to keep innovating, penetrate markets worldwide and to support your sales.”
Continue ReadingKumho Adds Three Sales Managers
(Akron/Tire Review) Kumho Tire USA Inc. has added three sales managers to its ranks. Aaron Duty joins Kumho as a regional sales manager for southern California and Arizona. He had been a district sales manager for Toyo Tire (USA) Corp. Before that, he served as a service technician with Sears Automotive and previously as a fabricator and engineering laboratory technician. Duty earned a Bachelor’s degree in business administration from California Polytechnic State University. John Krajewski has been appointed a regional sales manager for Wisconsin, Illinois and northern Michigan. He spent 15 years with U.S. Tire & Exhaust and five years with Chem-Trend, a company that sells mould release chemicals to the tyre industry. Krajewski earned a bachelor’s degree in political science from Northern Illinois University.
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