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Much sentiment about Chinese manufactured tyres emanating from the US in recent years has had a negative tone to it; from quality concerns to accusations of dumping, Chinese product has not always been welcomed with open arms. Yet it is unfair to tar all Chinese manufacturers with the same brush, and the Retread Tire Association is currently trying to get the message across that Chinese truck tyres can be a suitable alternative.
While the 2011 CV Show was well-attended by tyre majors and equipment suppliers alike, there was also a surprising number of tyre wholesale and distribution companies present. These included Kirkby Tyres & Wheels Ltd and RH Claydon Ltd as well as Tyreline OE Ltd and TD Tyres. What the two well-known wholesalers (Kirkby and RH Claydon) had in common was the fact that both firms were showing the latest Chinese-produced additions to their respective tyre product portfolios.
We’ve just emerged from a season that saw winter tyre sales go through the roof, and the word from many within the wholesale and retail industry is that if you couldn’t make a profit selling tyres during the winter of 2010/11, you really should find yourself a new vocation. Belgium based wholesaler Deldo Autobanden N.V. needn’t worry; it says that the winter season and 2010 in general was “very good” for the company – and not just because of its strong winter tyre sales. When speaking with Tyres & Accessories, Deldo international sales and marketing manager Rutger Veerman shared that last year the wholesaler built upon a recent pattern of growth, and is continuing to do so.
Infinity Tyres Europe Ltd has appointed Jorge Crespo as the company’s new European general manager. Crespo joins Infinity following nine years at Cooper Tire Europe where, as sales and marketing director, he was a board member. Prior to joining the Cooper Avon operation in Melksham, Crespo worked in the rubber compounding industry. However, having trained as a solicitor before entering the business world, he also brings a level of legal awareness into his new management position. Crespo took up his new role on 4 January.
Companiesandmarkets.com has announced the publishing of a new research report from China Research and Intelligence on the world’s top 50 tyre enterprises, 2010-2011. The report gives an analysis on the enterprises whose sales ranked among world's top 50 in 2009, including their operations, sales volume, development trend, and investment in China, amongst other things. The report ranks the world’s top 75 tyre enterprises in 2010 according to sales revenue relative to tyre manufacturing in 2009. The top three, somewhat unsurprisingly, remain as Bridgestone, Michelin and Goodyear, though the sales revenue of these three companies witnessed a double-digit drop on 2008 figures.
Following its appearance at Reifen 2010 in Essen and, just four weeks later, Italian radial OTR tyre manufacturer MAI International took part in the Latin American & Caribbean Tyre Expo, held on the other side of the world in Panama City. MAI Group CEO Ian Thomas declared the event "a great success", saying: "It was a terrific show for us and proved an ideal showcase for our MAXAM range of OTR tyres."
He went on: "This is the first time we have exhibited at a show in this region and, not only was there a lot of interest shown in our products, but we did some very good business and took a number of firm orders for tyres."
Belgian wholesaler Deldo Autobanden is one of the largest operators in Europe, and amongst the more than 25 brands stocked at the company’s 60,000 square metre warehouse in Antwerp are four exclusive and two private brands – Fortuna and Minerva. The labels are aimed at the budget segment, an area where Deldo reports seeing significant growth during the last 12 months. In an interview with Tyres & Accessories, Deldo marketing manager Rutger Veerman stated the company has “noticed a growing demand in the European replacement market. Acceptance of Chinese products is growing, and we are benefitting from this.”
Now President Barack Obama has stuck 35 per cent import duty on all passenger car and light truck tyres from China for the next three years what happens next? Chinese tyre manufacturers won’t want to sell fewer tyres each year. But US importers, consumers and manufacturers are equally unlikely to want to pay or absorb the additional costs. Tyres & Accessories spoke to a range of US, Far Eastern and Chinese companies and found that manufacturers are having to rely heavily on production flexibility, while traders are now setting their sights on one market in particular – Europe.
Stephen Wu, managing director of Chinese tyre trading operation, Best Choice International, reports that orders from the US stopped came to a virtual standstill in July. Their strategy is now openly towards producing more European market orientated products: “We stopped an SUV/LT project and waited for the decision. And we produced more European UHP tyre sizes, not US sizes.” Companies like Best Choice are now prioritising orders in other markets – especially Europe – where they aim to sell the most popular sizes, UHP and winter tyres. Best Choice is apparently interested in other markets as well, but Wu refused to give further details at this time. As far as Best Choice is concerned there is now zero chance of getting orders in the first year of the tariff, except in the 19-inch and over category. As a result competition is likely to be based on just two factors: price and delivery time.
Transense has signed a Memorandum of Understanding (MOU) with Qingdao Mesnac Co. Ltd, the parent company of the Sailun brand’s tyre manufacturing division. According to an official statement, Transense and Mesnac have entered into an agreement to combine their individual areas of expertise, for the purpose of developing Transense's patented tyre pressure monitoring sensor technology for the attachment or embedding of these sensors into tyres. Under the terms of the agreement Mesnac have agreed to an initial upfront payment and will pay additional sums for technology transfer/engineering support on an as required basis. Transense shares rose 17 per cent following the news.
Deldo reported having a good Autopromotec with a lot of international visitors to their stand. “Our Italian team were kept extremely busy dealing with enquiries from perspective new and existing customers,” said the company’s marketing manager, Rutger Veerman.
“Up to now this year for Deldo has not seen the dramatic sales decline that was predicted by many due to weakening of the global economy,” continued Veerman. “In fact, our tyre sales have been reasonably good and there is even a slight improvement over the first months of the previous year. So, we would have to say that we are reasonably satisfied compared to what is happening with the automotive market generally. One obvious result of the international fiscal situation is the increasing demand for budget tyres.”
In addition to its premium labels, Deldo offers an attractive package of private brands Minerva and Fortuna and exclusive labels Wanli, Roadstone, Sailun and Rockstone. Each tyre program presents its own specific characteristics and size range which equates to total sales of over 3 million budget tyres annually. With a large sourcing network, daily communication with its many partners and the continuous development of its product portfolio Deldo holds a unique position in the European market. “Important assets for an independent wholesaler are client oriented service, continuous stock and supply, attractive pricing and just-in-time distribution,” said Veerman.
Retreading has long been recognised by commercial fleet operators as a major means of saving on operating costs, yet in some quarters retreads are still seen as offering less than their new tyre equivalents. Putting a stop to these misperceptions through elevating public awareness of retreading’s economic and environmental benefits has been a major focus of the US based Tire Retread & Repair Information Bureau – more commonly known as TRIB – for almost four decades. Recently Tyres & Accessories spoke with TRIB managing director Harvey Brodsky about an industry that commercial vehicle operators simply cannot afford to ignore.
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.
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