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.
Another new name to Tyres & Accessories was Toyama Tyre Corp., Ltd., a company that reportedly runs its own factory in Shandong Province’s rubber city, Qingdao. The leadership of the business is said to have moved to China after having originally established itself as Japanese entity. In fact the company takes it moniker from the Japanese city of the same name.
One particular newcomer at last year’s Reifen China, was Anhui Daree Rubber Corporation Ltd. Eager to find out more about the largest of this year’s show debutants, Tyres & Accessories spoke to JoJo Zhao and Vicky Shaw of the company’s global trade department and Lydia Cheung from the Daree’s sales department.
Formed in June 2010, Daree Rubber is a subsidiary operation of the Daree petrochemical group Daree Enterprise Group owned by Bajie Hua and is located in SanShan District, Wuhu City, Anhui Province. Like many newcomers before it, the business has ambitious plans to produce millions of truck and bus radial tyres within two years of formation, followed by the addition of passenger car radials to the range later in 2012 – all under the snappy motto of “pursuit to be perfect.”
We are told that we are living in an age of austerity and belt-tightening, but this has not stopped Rolls-Royce Motor Cars announcing that 2011 was a record year for sales of the luxury marque. 3,538 cars were sold globally during the year, a 31per cent increase on the 2010 total of 2,711 cars. The figure represents the best sales result in the company's 107-year history; the previous record of 3,347 cars having been set in 1978 during the Silver Shadow II era.
Good news from the Volkswagen Group at the Detroit Motor Show, when it announced that global vehicle sales rose above 8m for the first time last year, passing Toyota and moving closer to expected number one General Motors.
Described by its organizers – IGVision International Corporation of Shanghai – as "China's premier tyre industry conference", Tirecon Asia 2012 will take place in Shanghai on April 18-19.
Over 30 distinguished speakers from leading tyre industry companies across the globe will make presentations on a number of subjects, including prospects for the global tyre markets, forthcoming regulations and the latest advances in tyre technology.
With China accounting for about 34 per cent of global rubber demand in 2011 and with demand for cars slowing last year in the People’ Republic, the varied economic climate is proving to be a challenging environment for the countries fast growing domestic tyre manufacturers.
According to China Daily and Bloomberg reports, China's economy is forecast to grow 8.5 per cent next year, the least in 11 years, according to the Organization for Economic Cooperation and Development (OECD). Vehicle sales may rise by the least in 13 years in 2011, plunging from last year's record 32 per cent, the China Association of Automobile Manufacturers reported.
In December 2011 Triangle’s retreading operation, which at this point was running at 200,000 units a year was recognised as one of Shandong Province’s top 10 “Circular Economy Demonstration Projects” by Shandong provincial government. Triangle’ rubber products centre in Weihai, Shandong Province, is also known as production base number 3. This site has the capacity to produce 10 million rubber flaps and inner tubes, 5000 tonnes of rubber powder and 500,000 retreads a year.
Triangle Tyre reports that on 28 December 2011 it was named the ‘2011 China’s Innovative Enterprise with Most Growth Potential’ at the annual China Independent Innovation Annual Conference, which was held in Beijing. The company says it attained this honour due to its “significant achievements in technology and product innovation.”
Taiwan-based tyre makers including Cheng Shin Rubber Ind. Co. and Kenda Rubber Industrial Co., are expected to see substantial growth in earnings in the first quarter of 2012 due to declines in raw material prices, particularly natural rubber. Furthermore, according to Taiwan Economic News, the European sovereign debt crisis means tyre manufacturers have slashed inventories to get rid of the risk in the prices of stocked goods.
Workers at Cooper Tire & Rubber’s Findlay plant may still be locked out but at Cooper’s facility in Tupelo, Mississippi, employees reached one million man-hours without a lost-time incident during the course of this week. The achievement marks the second time Cooper's Tupelo employees reached the million-hour mark; in September 2010 they also passed a million hours without a lost-time case.
Just days after signing a significant distribution deal in China Transense has announced a similar arrangement in another emerging market. Transense’ trading division, IntelliSAW, has reportedly entered into an exclusive distribution agreement with Adperc of Brazil. Adperc has forecast sales of the IntelliSAW monitoring system in Brazil of at least $2.8 million over the next three years and will have to achieve this to maintain exclusivity in the territory. Adperc will provide distribution, system integration and marketing services for IntelliSAW's innovative wireless/passive temperature monitoring system throughout Brazil in electric power transmission and distribution systems. Like China before it, Brazil has been identified by Transense directors as a key geographical region for IntelliSAW.
The passenger car tyre plant inaugurated in May is not Continental’s only tyre factory planned for the Chinese city of Hefei; on 9 December the company broke ground on a two-wheel tyre facility there. The factory, which will mainly manufacture mountain and racing bicycle tyres for China and Asia, is expected to enter service in December 2012. According to Constantin Batsch, head of Continental's Two Wheel Tyre business group, initial production capacity should be 1.7 million units per annum.
More than 25 CEOs and business leaders from the rubber and associated sectors are expected to speak at next year’s World Rubber Summit, including representatives from Bridgestone, Goodyear, Lanxess and Michelin. Event organiser, the International Rubber Study Group, has announced that next year’s summit will take place in Singapore on 22 to 24 May 2012 and be accompanied by World Rubber Week activities.
The Westlake tyre brand is named after one of China’s most popular domestic tourist destinations and a 2011 addition to UNESCO’s World Heritage Sites – the freshwater West Lake in the centre of Hangzhou, the home town of its manufacturer Hangzhou Zhongce, located around 180km south-west of Shanghao. Shen Jin-Rong, Hangzhou Zhongce president and chairman, reflects with pride on the link between what is seen as a premier Chinese location and the tyre brand named after it: “Westlake is our tyre brand and also the best place in our city.” The Al Dobowi Group distributes the brand in several European territories through its Eskay Tyres subsidiary; the newly exclusive distributor of the brand in the UK was announced as Axle Group Holdings at the end of September – owner of the Viking International wholesale arm and the National Tyres & Autocare retail chain (see T&A October’s Wholesale feature and the Related News link below). Tyres & Accessories travelled to the town from Shanghai with representatives from the Al Dobowi Group to see the development of Hangzhou Zhongce’s manufacturing facilities, and to witness the growth in interaction between the manufacturer and European dealers of its Westlake brand.
Kirkby Tyres has announced that it will have a “major presence” at LAMMA 2012 and will be featuring “many new tyre products and sizes for the tractor, row crop and trailer markets” Kirkby Tyres is the sole UK and Ireland agents for the extensive Alliance range of agricultural and earthmover tyres. The company is also the UK agent for BKT tyres and as such the string of launches and the products on display will be largely drawn from these two manufacturers.
Alliance is set to introduce the Farm PRO 85 and 70 series R-1w tractor radial tyres. With 20 per cent more tread than conventional R-1 tyres and a large foot-print the Farm PRO Traction tyre has an advanced multi–angle lug design with a steep central angle for a smooth ride, long wear and mud clearing properties and a shallow angle at the shoulder for exceptional traction and hillside stability.
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