Aeolus executive vice president, Zhang Xiaoxin, has retired. The tyremaker expressed gratitude for Zhang Xiaoxin’s “diligent work” and “contributions to the company” during his tenure but did not disclose who would be the successor to the position.
Aeolus Tyre has expanded its giant OTR portfolio to include a size 37.00 R57 product, the Aeolus AG01 Pro. The Sinochem Holdings subsidiary produced the first of these tyres at its Jiaozuo factory in China on 22 September. In this size, the AG01 Pro has a diameter of 3.4 metres, weighs approximately 3.4 tonnes and is designed for use on 180 to 200-tonne mining heavy-duty dump trucks.
In the first half of 2024, Aeolus’ revenue and net profit were 3.15 billion yuan (about £338 million; €406 million) and 230 million yuan (about £25 million; €30 million), respectively. Both figures have increased significantly compared with the same period last year.
Aeolus recently decided to increase the production capacity of giant tyres again. The tyre manufacturer said it will invest about 1.464 billion yuan (about £160 million; €180 million) to add 20,000 giant engineering radial tyre production capacity. Through the new project, the tyre manufacturer is trying to “further optimise the product structure, seize the high-end market, and increase market share.”
Several Chinese research institutions recently jointly released the “2024 China Brand Influence Index Report”. In the report’s “Top 10 Tyre Brand Influence” list, Doublestar ranked first.
Aeolus reports that its giant and OTR tyre expansion project has been completed, the civil engineering, equipment purchase, and installation have ended, and most of the equipment has been debugged and put into production. In other words, the company’s 80,000-OTR-tyre-a-year project has entered its final stage.
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.
Marking a journey of 59 years since its establishment in 1965, Aeolus Tyres counts itself as an OTR pioneer in China. Indeed, Aeolus reports that it produced the country’s first bias giant OTR tubeless tyre (36.00-51) and currently has the capacity to product radial giant tyres with specifications that includes 27.00R49, 33.00R51, 46/90R57, 50/80R57 and 53/80R63.
Aeolus’ revenue in 2023 will be 5.74 billion yuan (approximately £620 million; €730 million), an increase of 15.05 per cent from the previous year. Among the market shares, domestic market revenue accounted for 52.23 per cent, and replacement and OE accounted for 28.58 per cent and 23.65 per cent, respectively. According to the tyre manufacturer, it will launch a new 12R22.5 TBR product portfolio in the domestic market in 2023.
The Aeolus giant tyre project has completed all approval procedures and is expected to start construction in June 2024. The project is in Aeolus’ western factory in Jiaozuo. It plans to build a new production plant and power station and add giant tyre building and vulcanisation equipment. The construction period of the project is 24 months. After completion, it will be able to add 20,000 giant engineering radial tyre production capacity every year.
In 2023, China’s tyre industry experienced a number of significant changes among key personnel. Tyrepress China observes that the operations of foreign brands in China are relatively stable, with only Bridgestone China’s leaders having changed. However, several Chinese state-owned enterprises and listed companies have undergone significant personnel changes this year.
Recently, the authorities of Henan Province in China established a comprehensive cross-border e-commerce pilot zone in Jiaozuo City. Tyrepress China noted that as a local company in Jiaozuo, Aeolus would be guided to expand its cross-border e-commerce business.
On 3 August, 68 items of machinery and equipment of Aeolus were put up for auction online. Equipment auctioned included: setting machines and vulcanisation tanks, and the base price is 2.46 million yuan (about £268,000; €311,000).
Aeolus has set up two new subsidiaries in Chile and Indonesia to be responsible for tyre import and export and wholesale. Tyrepress China learned that the tyre manufacturer wants to “adapt to the needs of strategic planning and business development, promote the company’s exchanges and cooperation with the international market, continuously expand business fields, accelerate the process of internationalisation, and enhance international competitiveness.”
Doublestar, Guizhou Tyre, Linglong, Triangle, and Aeolus recently disclosed their semi-annual results forecasts. Doublestar was in the red in the first half of 2023. The other four tyre companies estimated that their performance would rise. Tyrepress China found that adjusting market and product structure became essential reasons for the net profit growth of several Chinese tyre companies. At the same time, the decline in raw material prices and shipping costs benefited tyre manufacturers in the first half of the year.
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Jiaozuo Daily
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