Now one of the largest tyre-producing countries in the world, China has an indisputable influence on the direction of global tyre trade. The home of both fast-growing up-and-coming brands as well as a burgeoning domestic market, this tag chronicles China’s involvement with the tyre business.
A newly created joint venture between USON’s leak testers and Innovative Products and Equipment’s automation systems expertise, USON-Innovative Systems (UIS), has resulted in a single source turnkey solution for semi-automated and fully automated leak testing applications.
If you were to look back on the rising presence of Chinese tyres in recent times, you’d be mistaken for thinking manufacturers in the People’s Republic view the world as their oyster and the future as all good. Yet tyre makers in China are not insulated from the economic troubles we’ve experienced since 2008. Last year, China’s economic growth slowed and imports are currently increasing at a greater rate than exports. On top of all this, China is now home to more than 500 tyre manufacturers. And while the top ten Chinese tyre makers together hold 30 per cent of the domestic market, most companies are small and many have product mix and quality issues. In light of these economic conditions and a crowded playing field, a number of larger Chinese firms realise they need to adapt in order to continue prospering. Specifically, they recognise the necessity of investing in quality.
On 4 May, the Triangle Group and the Harbin Institute of Technology signed a strategic cooperation agreement for the development of radial aircraft tyre technology. The agreement was signed at Triangle’s headquarters in Shandong Province by company chairman Ding Yuhua and Feng Ji from the Harbin Institute of Technology. Under the terms of the agreement, the two entities will set up a facility that draws upon the Weihai-based institute’s expertise in the areas of composite materials, engineering mechanics, automotive, mechanical design and manufacturing and information management professions and disciplines. Research will focus on developing tyres for larger aircraft, such as commercial airliners.
Linglong Tyres, manufactured by China’s third largest tyre maker, the Shandong Linglong Tyre Co., will exhibit its latest tyre range –Green-Max – at the upcoming Reifen show in Essen. The manufacturer describes this tyre, designed for the UHP segment, as its ultimate summer tyre.
For the first quarter of 2012, Bridgestone has reported net sales of ¥726.2 billion (£5.6 billion), a three per cent increase over the first quarter of fiscal 2011. The company’s operating income amounted to ¥63.0 billon (£490.0 million), an increase of 13 per cent, ordinary income was ¥61.7 billion (£479.9 million), an increase of ten per cent, and net income was ¥42.2 billion (£328.2 million), a year-on-year increase of 35 per cent.
Hangzhou Zhongce Rubber Company (ZC Rubber) was China’s largest tyre maker in 2011, according to figures published by the China Rubber Industry Association (CRIA).
Continental AG could re-join the German DAX index as early as June or September. Financial analysts also expressed support for continued growth at Conti, with Morgan Stanley summing up the firm’s expectations of the company in a single word – “confidence.” In an investor’s note dated 9 May, the bank continued by explaining its view that the latest feedback on vehicle production orders and tyre price discipline indicates that company targets “may prove conservative.”
Continental has announced plans to increase the number of it employs in China by 5,000 by the end of 2012, further to its announcement in 2011 that it would expand its staff by 25 per cent. According to the company this forms part of a strategic plan to support its growth in China, the automotive supplier will hire employees across various areas including engineering, manufacturing and functional roles. In order to achieve this goal, Continental is in the process of extending its recruiting programs, which include Campus Recruitment 2013, Continental University Competition, Continental Day in major cities, and sponsorship of Formula Student China.
Double Coin and the China Manufacturers Alliance have launched a new mobile website aimed at North American customers. The site will complement the existing www.doublecoin-us.com and is designed and formatted for optimal viewing on any web-enabled Smartphone, including iPhone, Android, Blackberry and others. Features accessible through the mobile site include product specifications and warranty information, and visitors can use the dealer locator function to access over 1,000 independent Double Coin tyre dealers across North America. The phone’s GPS automatically redirects to the closest dealer based on the user’s current location.
English language daily Arab News reports that Al-Amoudi Group company, the Al-Muwakaba for Industrial Development & Overseas Commerce (Holding), will establish a 194,000 square factory in the Saudi Arabian port city of Yanbu. The project will cost an estimated SR900 million (£148 million), and the facility is expected to employ 600 workers and have an annual output of 1.8 million passenger car and commercial vehicle tyres.
Despite higher manufacturing costs in the first quarter of 2012, including costs related to the lockout at its Findlay plant, Cooper Tire & Rubber has announced improved results. The company reports net sales of US$984 million in the first three months of the year, an increase of $82 million, or nine per cent, compared with the first quarter of 2011. Operating profit was $48 million for the quarter, an increase of $16 million from the prior year same quarter. Net income attributable to Cooper Tire & Rubber for the quarter ended 31 March 2012 was $22 million, or $0.34 per share on a diluted basis, compared with $16 million, or 25 cents, for the first quarter of 2011.
In recognition of the company’s global commitment to road safety, Michelin has received the Prince Michael International Road Safety Award at the inaugural Decade of Action for Road Safety Policy & Donor Forum, which was held in New York on 2 May.
Triangle Tyre Company has become the latest company to join Europe’s Imported Tyre Manufacturers’ Association (ITMA). The association offers timelier access to technical, legislative and market information, helping tyre-makers to operate more effectively within the region. The company’s membership means that ITMA’s 16 members include the top five tyre manufacturers in China in terms of turnover. Triangle is the association’s sixth new member in the last year and a half; a fact ITMA says reflects the growing weight of regulations.
Fan Rende, chairman of the China Rubber Industry Association, shares that China has launched a plan to develop ‘green’ tyres. The plan calls for half of China’s tyre makers to be capable of manufacturing fuel-efficient tyres by the end of the country’s current five year guideline in December 2015, and for half of these tyre makers’ output to be green tyres by the same date.
Sales at Goodyear Tire & Rubber Company during first quarter of 2012 were a record for the period, the US tyre maker claims. Announcing the company’s results for the opening three months of the year, Goodyear chairman and CEO Richard J. Kramer commented “I'm pleased with our results as our businesses posted solid operating income.”Our teams delivered these results in the face of a difficult volume environment and high raw material costs, with a strong focus on price/mix.
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