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166

High Ambitions For Sailun Tyre

Sailun Tyre is a company that epitomises the rapid technological advances made by Chinese industry in recent years. Although it was only established six years ago, Sailun has plans to expand significantly.
The company is situated in the National Economic and Technological Development Zone in Qingdao and manufactures all-steel radial truck tyres. However, its ambition is to build three modern factories to manufacture a range of medium truck radials and bias and radial special tyres, as well as the existing range. These plans also include a dedicated test track to be used in the development and evaluation of new products.

Sailun has already invested heavily in R&D, utilising CAD software to build mathematical models for finite element analysis, refining the design of a tyre and predicting its behaviour and performance while still on the screen. The company boasts a very short development time for new products and has established long-term co-operation in science and research with institutions such as the National university of Defence Technology and the Qindao University of Science and Technology.

167

Top Chinese Tyremakers: Manufacturers ranked by tyre production capacity in 2023

In 2023, Linglong’s various factories had a production capacity of 91.34 million tyres. Including the production of PCR products at the Serbian factory, in 2025 the tyre manufacturer’s annual production capacity will likely exceed 100 million tyres. Linglong’s tyre production base in Zhaoyuan, Shandong, has an astonishing production capacity of 36.1 million sets, including 30 million PCR, 5.85 million TBR, and 250,000 OTR tyres. The Dezhou base in Shandong has capacity for 9 million PCR and 3.2 million TBR tyres a year. The Guangxi production base can make 11 million PCR (1 million more than the designed capacity), 2 million TBR, and 140,000 OTR annually. The Hubei production base has capacity for the construction of 9 million PCR and 2.4 million TBR tyres. That opeartion’s designed PCR capacity is 12 million, and further under-construction capacity is expected to be completed in 2024. The Jilin production base can make 1.5 million PCR and 1 million TBR tyres. The company said that the capacity of the Jilin factory’s PCR production lines is expected to reach 6 million tyres a year in 2024. The company’s planned two production bases in Shaanxi and Anhui have not yet released their production capacity in 2023. The Thailand factory has 13 million PCR and 2.2 million TBR among overseas factories. Linglong said that its Thailand factory reduced its PCR production capacity by 2 million in 2023. The Serbian factory achieved a production capacity of 800,000 TBR tyres in 2023, and the designed scale of 1.6 million tyres is expected to be completed in 2024.

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168

Overseas business supports sales of Chinese listed companies in 2023

In 2023, the overseas market has become essential for Chinese-listed tyre companies to increase revenue and profits. According to statistics from Tyrepress China, the overseas revenue of Sentury, Sailun, Jiangsu General, Prinx Chengshan, Triangle, and Doublestar in 2023 was higher than revenue in the Chinese domestic market. Aeolus, Linglong, and Guizhou Tyre have higher domestic market revenue.

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169

Sustainability, new European-orientated factories and EV tyres

July’s edition of Tyres & Accessories magazine focuses on three points – our latest ranking of the leading tyre manufacturers in terms of turnover and accompanying analysis of key players in terms of share price and third-party brand valuation (see pages 14 to 21); headlines and interviews from the recent The Tire Cologne exhibition (see pages 26 to 41); and our scheduled mining and construction tyre feature (see page 48 onwards). While they are not intentionally related, the impact measured within the pages of our leading tyremakers table and accompanying analysis, echoes into the key themes and movements on-show at Tire Cologne. And that impact revolves around three themes: one philosophical, one strategic and one product-related, namely – sustainability, investment in factories and the development of electric vehicle ranges. Of course, these themes interrelate like the overlapping circles of a Venn diagram. But they also represent distinct themes in and of themselves.

Tyres & Accessories logoThis article is an example of the editorial comment that introduces every edition of Tyres & Accessories magazine. Not a subscriber? No problem, click here to become one.

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170

Demand overtaking supply: Triangle Europe’s contribution to the global picture

Triangle Tyre Europe introduced EffeX SUV and EffeX Winter tyres at The Tire Cologne, products that build on the growing portfolio of latest-generation tyres that are designed to defy expectations in the marketplace. Tyres & Accessories spoke with European general manager, Corrado Moglia, and UK sales director, Steve Eke, and learnt more about how demand is outstripping supply, indeed the international business of the European business plays a strategic role in the overall Triangle global operation, which arguably punches above its weight in the global context.

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171

World’s largest tyremakers 2024: Stable “balance of power” and ambitious manufacturers

Our latest “world's largest tyremakers" data based on the key figures for the 2023 financial year sheds light on several developments that have recently characterised the tyre market. On the one hand, there is the development of sales, which have at best moved sideways for many manufacturers compared to 2022. On the other hand, there is also the development in terms of ranking: here it is clear that companies from China are increasingly operating on an equal footing with the long-established manufacturers from Europe, America and Japan and now even have a new number 10 in the race with the Sailun Group. However, it is also clear that our ranking shows a stable "balance of power" overall.

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172

China’s top listed tyremakers in 2023: a large gap between the upper and lower echelons

2023 was a good year for many Chinese tyre manufacturers. Especially for listed tyre companies, benefiting from overseas markets and production capacity advantages, they can cope with market competition more calmly. Several Chinese tyre manufacturers report that they are undergoing IPOs in the past year, but no company has completed the main board listing. Therefore, the number of tyre companies analysed this time remains at 10, namely Sailun, Linglong, Triangle, Huayi (Double Coin), Aeolus, and Jiangsu General on the Shanghai Stock Exchange; Guizhou Tyre, Sentury and Doublestar on the Shenzhen Stock Exchange; and Prinx Chengshan on the Hong Kong Stock Exchange.

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173

MESNAC builds factories in Vietnam and Cambodia

MESNAC has announced plans to invest in factories in Vietnam and Cambodia. The company’s board of directors has approved two investment plans. The investment in the Vietnam factory amounts to 107 million yuan, and the construction period is about 18 months. The total investment in the Cambodian factory is 27.97 million yuan, and the construction period is 14 months.

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175

Tyre News in Numbers – June 2024

Tyres & Accessories’ monthly 'Tyres News in Numbers’ column boils down the latest tyre industry news to the most important statistics of the month. Below, we look at the big numbers from the June 2024 magazine... 13.6 billion yuan: The revenue – equating to £1.476 billion or €1.732 billion – generated by China’s biggest online tyre retailer, Tuhu, which went public at the beginning of this year.

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176

Brand Finance: Michelin still top, but Giti now 9th and Chinese tyremakers fastest risers

The latest Brand Finance data shows that Michelin is “the world’s most valuable and strongest tyre brand” followed by Bridgestone in second and with Continental rounding off the podium. However, Far Eastern brand value is rocketing, with Giti the fastest-growing tyre brand in the ranking, following a 19 per cent brand value increase. Similarly, Sailun, Linglong Tire and Sentury Tire accelerates off the back of an overseas demand surge.

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177

Direct retail, pre-sale research and social media in China and Europe

With China’s biggest online tyre retailer, Tuhu, having gone public at the beginning of this year, and with that firm alone generating annual sales of 13.6 billion yuan (£1.476 billion; 1.732 billion euros; $1.878 billion), the recent livestream panel discussion that took place between Tyres & Accessories and Car & Tire in China moved on to the similarities and differences between the online tyre business in the UK and Europe compared with China. The discussed touched on subjects including direct retail, pre-sale research and social media.

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178

Tyre News in Numbers – May 2024

Tyres & Accessories’ monthly 'Tyres News in Numbers’ column boils down the latest tyre industry news to the most important statistics of the month. Below, we look at the big numbers from the May 2024 magazine... $800-1,000 million: The valuation of Goodyear’s OTR tyre business by financial analysts at Jeffries. Goodyear has identified this segment alongside the rights to the Dunlop brand and Goodyear Chemical as parts of its business open to offers as it continues to restructure its business in the wake of leadership changes in 2023.

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179

Triangle Tire’s Europe and Middle East sales grew rapidly in 2023

In 2023, Chinese tyre manufacturer Triangle’s achieved revenue of 10.42 billion yuan (about £1.13 billion; €1.33 billion) and net profit of about 1.4 billion yuan (about £150 million; €180 million). Revenue of 10.42 billion yuan means that Triangle has surpassed Double Coin in the ranking of Chinese tyre manufacturers in 2023 and comes in behind ZC Rubber, Sailun and Linglong.

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180

Read and download Tyres & Accessories Magazine May 2024 now

Available now as an e-paper for subscribers to Tyrepress, Tyres & Accessories previews The Tire Cologne 2024 - Europe's largest tyre business expo - and the fleet tyre market. As well as these special features, the issue details the UK's approval of red lights for roadside workers, analysis of a potential buyer for Goodyear's OTR tyre division, and a visit to Goodyear's new simulation centre. Non-subscribers can gain access to Tyrepress with a print or online subscription. Tyre professionals can take advantage of the current Tyrepress Membership offer, helping to drive business online and stay informed with the industry’s leading magazine and websites.

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