Aeolus’s first batch of 63-inch OTR tyres was shipped from the company’s Jiaozuo manufacturing base on 11 March. The specification model of this batch of tyres is 59/80R63. Aeolus said that these giant tyres were sent to key overseas markets. The manufacturer said that a giant tyre weighs nearly 6 tons with a diameter for more than 4 metres and is mainly used for mining dump trucks, around 400 tons.
At the end of January, three Chinese tyre companies released their 2022 performance forecasts, which show that Aeolus and Linglong are in profit, but reveal huge losses at Doublestar.
On 19 January 2023, Aeolus stated that Wang Feng resigned from the role of general manager due to work needs. However, while he has left that position, Wang Feng remains chairman of Aeolus. On 5 December 2022, Wang Feng was appointed as the chairman of China National Tire & Rubber Co., Ltd. (CNRC), the controlling shareholder of Aeolus
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.
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, 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.
2022 has been a challenging year for the Chinese tyre industry. This year is coming to an end, but a feeling of anxiety is crossing regions and classes and spreads throughout the industry. From manufacturers to distributors, from vulcanisation workshop workers to corporate executives, many professionals are asking the question: Where is the future of China’s tyre industry?
On its 10 November board meeting, Aeolus approved a project with a total investment of 610 million yuan (about 73.12 million pounds, 82.93 million euros) at its manufacturing base in Jiaozuo, China. It is reported that the tyre company plans to increase the annual production capacity of 80,000 tyres through reconstruction, including giant tyres and engineering radial tyres. The construction period is expected to be 18 months.
Based on stock market reporting for the third quarter of 2022, the top nine Chinese listed tyre companies ranked by revenue are Sailun, Linglong, Triangle, Huayi (the holding company of Double Coin), Guizhou Tyre, Sentury, Aeolus, Jiangsu General, and Doublestar. (The leading Chinese tyre company according to Tyrepress global rankings is ZC Rubber (Hangzhou Zhongce), but it is not listed.) The figures show that Sailun has completed a meteoric rise this year to become the Chinese tyre industry’s stock market leader, with an income of more than 6 billion yuan in the quarter, putting it within reach of the global top 10 tyre manufacturers.
At the end of October, several listed companies, including Linglong, Triangle, Sailun, Aeolus, Jiangsu General, Guizhou Tyre (Advance), Doulestar and Sentury, released their operating results for the third quarter. In the third quarter, Linglong produced 17,015,900 tyres and sold 16,623,600 tyres, with a revenue of about 4.37 billion yuan (about 520 million pounds, 600 million euros) and a net profit of about 110 million yuan (about 13.1 million pounds, 15.22 million euros).
On 11 October, a 59/80R63 radial engineering tyre rolled off the production line at Aeolus’s Jiaozuo manufacturing base. This giant OTR tyre has a diameter of over four metres and a weight of nearly six tons. It is mainly used for giant mining weighing about 400 tons.
On 4 August 2022, Aeolus announced it was ready to sign a supplementary agreement with China National Tyre & Rubber Co., Ltd (CNRC). Through that agreement, CNRC has entrusted Aeolus with a 38 per cent stake in Prometeon Tyre Group S.r.l. (PTG).
Progress has been made in the relocation of Aeolus’s Qingxu County, Taiyuan City, China tyre factory. Specifically, the Qingxu county government has already determined the factory’s new address. A few days ago, the relevant departments invited a design team to inspect the factory’s new location and discuss the relocation project’s design plan. At present, the design unit is preparing a feasibility proposal.
Aeolus and Doublestar recently reported operating results for the first half of 2022. Both show sharp declines in net profits for the two companies that have controlling interests in global tyremakers Prometeon and Kumho respectively.
Chinese listed tyre companies have successively released their 2021 annual reports in recent weeks. Here, Tyrepress analyses these annual reports’ comparing developments in revenue, operating conditions and overseas factory strategy. And the short story is Linglong remains the largest tyremaker amongst the top 10 listed Chinese tyre companies and that Sailun is the fastest growing.
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Aeolus
Austin Diste; Unsplash
Fengshen
Andreas Felske; Unsplash
Christian Lue; Unsplash
Aeolus
Sailun
Linglong
Aeolus
Source: T&A research
Aeolus
Doublestar
Mylene2401; Pixabay