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.
Leading Chinese tyre manufacturer Hangzhou Zhongce Rubber has confirmed that it is planning to build a tyre factory in the vicinity of Bangkok, Thailand. Speaking to Tyres & Accessories, the executive responsible for the company’s Westlake brand Mr Ge, confirmed that the company had signed a contract with the Thai government to purchase land in the Bangkok development zone.
During Goodyear Tire & Rubber’s March 22 investor day, Asia Pacific president Pierre Cohade reported that the company’s newest plant in China, its Pulandian facility, has commenced production. Speaking on the plant that in a couple of years will completely replace Goodyear’s existing Dalian factory, where maximum possible production capacity has already been reached, Cohade confirmed “the factory is just starting up, we made the first tyre last month.”
Hercules boasts a long history in the tyre wholesaling business. First established in the 1950s, today the company sells tyres to more than a hundred countries through its Hercules Tire International division and offers its customers a well-established exclusive private brand. The firm is also active in North America through its own distribution companies there. Tyres & Accessories recently spoke with Rick Dorscht, managing director of Hercules Tire International’s European division, who shared the Hercules approach to long-term strength in the global wholesaling business.
Goodyear has announced a number of key personnel changes in the Asia Pacific region. On March 1, Mike Martens took charge of the tyre maker’s Melbourne-based Australia and New Zealand business, replacing Judith Swales, who, according to Goodyear’s Asia Pacific president Pierre Cohade, has “decided to leave Goodyear to pursue her interest of holding non executive board positions in Australia.” The 25-year Goodyear veteran will continue his role as vice president of Asia Pacific OTR.
Kumho Tires has announced a voluntary recall of certain tyres in China after the company’s head of research and quality control visited the Tianjin passenger car tyre factory to investigate production processes. The tyre maker reports the visiting team carried out a thorough investigation and “partly confirmed that internal production standards were not strictly observed at the site.” In addition to the abovementioned product recall, Kumho has taken disciplinary action against the head of the Tianjin factory and those employees found to be involved in negligent quality control. All product-related claims will be dealt with “solely from the customers’ point of view,” the company adds.
Thailand’s Natural Rubber Policy Committee has agreed to set minimum and maximum prices for natural rubber as part of a range of measures intended to stabilise the industry and prevent major fluctuations in price. The Bangkok Post reported on July 22 that a task force chaired by the country’s Agriculture and Cooperative Ministry has been appointed to lay out these price guidelines within one month.
Birmingham’s Dunlop Aircraft Tyres facility has announced that it has taken delivery of manufacturing and testing equipment acquired from The Yokohama Rubber Company. The Japanese firm, which Dunlop says had a strong reputation in Japan for manufacturing and retreading aircraft tyres, withdrew its brand from this sector of the market last year. “By acquiring this equipment we will enhance our global manufacturing capability and put Dunlop Aircraft Tyres in a strong position to expand its product range,” said the company’s chairman, Ian Edmondson.
Recent months have seen a flurry of expansion and acquisition activity at Trelleborg Wheel Systems. First the company enhanced its position in the European solid tyre market through the acquisition of Watts’ industrial tyre business towards the end of 2010 (it was officially finalised during February 2011). Then came the acquisition of the pneumatic tyre production lines at the former Hebei Starbright plant, which the company bought from Maine Tire in the US. Most recently the company launched its TMBlue eco-concept range at the SIMA show in Paris at the end of February. Tyres & Accessories was on hand to hear further details about the thinking behind the recent developments and noticed a significant nod in the direction of further expansion in the emerging markets.
Emerging markets such as the BRIC countries are expected to drive growth for Trelleborg Wheel Systems over the next few years. In the Trelleborg Group’s 2010 annual report, Maurizio Vischi, president of the business area responsible for producing industrial and agricultural tyres, said “emerging markets as Brazil, China and Russia have begun to show more interest in high-tech products and products that generate value. This provides significant expansion potential through greater presence in these markets.” Vischi admitted that that Trelleborg expects only “restricted” growth in Western Europe and North America, where the business area already counts as “one of the principal players.”
South Korean tyre manufacturer Kumho has responded to Chinese news station CCTV’s claims that one of its Chinese factories uses a high proportion of rework rubber in tyre production. Amongst other things in the 15 March report, CCTV claimed that Kumho Tires’ own production standards were not being met at the Tianjin factory and that the rules were only adhered to when OE customers visited.
In a written statement sent to Tyres & Accessories in answer to questions about the reports, Kumho said it has “moved rapidly to implement a thorough internal investigation into the circumstances surrounding the report and expects to release the results of this process at the earliest possible date.”
The recently announced joint venture between Cabot Corp. and China’s Risun Chemicals forms just one part of the American company’s plans to expand its global carbon black manufacturing capacity. On March 16 Cabot shared that it will invest more than US$180 million to this end between now and 2013. In addition to its as yet unnamed Chinese joint venture operation the company intends to expand capacity in Indonesia, Brazil and Argentina plus at three European facilities. In total these projects will increase Cabot's annual global carbon black output by about 15 per cent, or more than 300,000 tonnes.
Within the next two years Hankook Tire intends to open Korea’s largest tyre research and development centre. The tyre maker has announced plans to shift its main R&D operations to a new 66,000 square metre centre in the city of Daejeon; company vice chairman and CEO Seung Hwa Suh and Daejeon Metropolitan City mayor Hong-Chul Yum have already placed their signatures on a contract covering the relocation. Construction work on the centre should be finished by 2013.
Chinese website gasgoo.com and other sources report Kumho Tires’ denial that tyres manufactured in one of its factories in China are unsafe. The tyre maker’s comments on the quality of its tyres follows an article aired by Chinese state television broadcaster CCTV on March 15. The CCTV report alleged that Kumho Tires used excess recycled rubber in the tyres manufactured at its Tianjin factory, a practice described as one that could lead to tyre safety and performance issues.
Cabot (China) Ltd. has entered into a joint venture agreement with Risun Chemicals Company, Ltd. The wholly-owned Cabot Corporation subsidiary holds a 60 per cent equity interest in the joint venture, and on March 15 the two companies’ first shared undertaking was announced: Cabot and Risun are to erect a carbon black manufacturing facility in the Chinese city of Xingtai, some 250 miles south of Beijing. The plant is scheduled to be commissioned in early 2013 and will produce approximately 130,000 tonnes of carbon black annually with the potential for expansion to 300,000 tonnes. Advanced emissions control technology and energy recapture will be utilised at the new facility, Cabot notes.
The United Steelworkers has described a decision made by the Appeals body of the World Trade Organization as “a slap in the face to US workers and industries that are harmed by China's predatory trade practices.” The decision reverses the findings of a WTO panel report from last year on anti-dumping and countervailing duty proceedings for off-road tyres and a number of other products from China; specifically, the WTO states the US Department of Commerce acted erroneously by simultaneous levying both anti-dumping and countervailing duties on these products.
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