Chinese Auto Production Rose by Nearly a Third in 2010
Statistics released by the China Association of Automobile Manufacturers state that the country produced 18,264,700 units in 2010, an increase of 32.44 per cent on 2009.
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.
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Chinese Auto Brands Rising in Domestic Market
NewsThe year-on-year rise of a third in light vehicle sales in China last year was coupled with a 1.3 per cent gain in market share for domestic brands, a statement from the China Association of Automobile Manufacturers claims. 6.3 million of the total 13.8 million units sold in 2010 were Chinese. “Compared with the previous year, the market share of Japanese and Korean brands dropped slightly while that of German, American and French brands inched up,” stated CAAM. German brands trousered a market share of 14.4 per cent, while France scored 2.7 per cent.
Two-Year Rubber Squeeze Predicted
NewsThe acceleration in demand for tyres in rapidly growing economies like China and India has led to a sharp increase in natural rubber prices over a sustained period, as a look at the tyrepress.com News archive will tell readers. Now climatic conditions in major rubber supplying nations Thailand and Indonesia could prevent production upgrades, potentially leading to shortages and further price increases, according to estimates made by the Association of Natural Rubber Producing Countries.
Hangzhou Zhongce Investing in Thai Tyre Plant
NewsChina’s Hangzhou Zhongce Rubber has entered into a joint venture agreement with Thai Hua Rubber to establish a tyre production facility in Thailand’s Rayong Province. According to Bangkok based newspaper The Nation, the plant will be set up with a five billion baht (₤102.7 million) investment from the two parties; Hangzhou Zhongce holds an 85 per cent share in the joint venture, with the remainder belonging to the Thailand based rubber company.
Cooper JV Plant Earns 9001:2008 Quality Certification
International NewsThe Mexico based Corporacion de Occidente joint venture, 58 per cent owned by Cooper Tire & Rubber, has earned the ISO 9001:2008 quality certification, joining six other Cooper Tire facilities – the company’s manufacturing facilities in Melksham plus its Findlay, Texarkana and Tupelo plants in the US plus its Cooper Kenda Tire joint venture in China and the Tall Timbers Mold Operations facility in Findlay – that hold this designation.
Chinese Tyre Makers Discuss Ballooning Rubber Prices
NewsThe China Rubber Industry Association has referred to rising rubber costs as a ‘grim situation’. The CRIA reports that rubber prices, currently approaching RMB 40,000 per ton, have caused tyre production costs to increase by 50 per cent and squeezed profit margins to a record low, with year-on-year profits declining by up to 50 per cent last year. In light of this industry crisis, seven CRIA members met in Beijing on January 13 to discuss possible countermeasures.
Tyres & Accessories December 2010
NewsDecember's Tyres & Accessories magazine is now available online. Subscribers can virtually view all the pages of our Year in Review issue by clicking more below. The December edition also contains features on the Equipment and
Consumables part of the business and the Reifen China 2010 exhibition that was held at the end of last year in Shanghai.
Himile – China’s Largest Mould Maker
NewsBased just about an hour outside China’s rubber capital city (Qingdao in Shandong province), Himile Mechanical Science and Technology Co., Ltdis purportedly the largest mould manufacturer in the People’s Republic.
Growing into the position of leadership in one of the largest tyre markets is a process that has been completed within the space of one and half decades. Founded in 1995, Himile initially went into business with just two production lines – one for tyre mould making and one for manufacturing tyre manufacturing equipment. Since then the scale of the business has multiplied many times over.
Chinese Machinery Makers Look to Export Markets
International News, NewsWhile much attention has been focused on the amount of tyres being produced in China in general and the rapid growth of the most professional Chinese tyre manufacturers, the machinery companies that supply them have kept their similarly meteoric rise somewhat beneath the radar. But while the tyre mould and machinery making companies have managed to avoid the limelight so far, some market observers argue that their growing influence should not be ignored.
Will Michelin Play a Role in New Double Coin Plant?
Company NewsOne year after their final break up, Double Coin Holdings and Groupe Michelin may be getting back together again for a project in China, reports Tire Review. The US publication says information originally published by SinoCast Daily Business indicates the two companies are in negotiations concerning Double Coin’s planned passenger car tyre plant in Hefei, China. Double Coin announced plans for the plant in December 2010. Michelin, according to SinoCast, denies details of one rumour that has it taking a 30 per cent share in the new plant, but has offered no other statement.
Latest Rhein Chemie Acquisition a ‘Springboard’ for Further Investments
NewsIn the coming years, Lanxess subsidiary Rhein Chemie plans to expand its production of curing bladders for the tyre industry. These plans have been given a boost by its acquisition of Argentina based curing bladder and release agent manufacturer Darmex S.A. for an undisclosed sum. As a result of the acquisition, Lanxess reports that Rhein Chemie will become one of the “world’s leading providers of release agents for rubber products in a highly fragmented market.” Rhein Chemie will also acquire Darmex’s bladder technology in Latin America, a key production hub for leading tyre manufacturers. The release agents and bladders belonging to Darmex will be branded under Rhein Chemie brand name.
Solar Power for Yokohama China Site
NewsYokohama Rubber intends to reduce its greenhouse gases by 25 per cent (using the year 1990 as a benchmark) by 2020, and to achieve this target the company is introducing natural energy sources and more energy efficient equipment. As part of this programme, China based company subsidiary Hangzhou Yokohama Tire Co., Ltd. is installing a photovoltaic power generation system at its head office administration building and guardhouse. The solar power equipment to be fitted there is comprised of seven hundred and twenty nine 100-watt panels in a space of approximately 3,000 square meters, and these will supply about 67,000 kWh of electricity annually – about 0.3 per cent of the facility’s requirement – and cut CO2 emissions by about ninety four tons per year. This first solar power system installed at a Yokohama Rubber company outside of Japan will enter operation in February 2011.
How to Negotiate Production Over Chinese New Year
International News, NewsWith varying reports of a product shortage and increasing raw material and shipping costs, how do companies sourcing products from China expedite production when the workers in the People’s Republic down tools for two weeks over Chinese New Year? Mould maker Bluestar recently contacted Tyres & Accessories offering the following advice.
T&A Visits Apollo’s Limbda and new Chennai Factories
NewsIf you cast your mind back to before 2009’s Apollo/Vredestein merger deal was announced there was much talk about plans for the construction of a greenfield tyre production plant in Hungary. Newspaper reports published at the time suggested that Apollo had earmarked around 200 million euros for this. Most observers interpreted the Vredestein purchase as being a substitute for the Greenfield plans, but bearing in mind that the pricetag was reported as being just US$ 50 million in June 2010, it raises the question of what was done with the rest of the money. The short answer is that Apollo executives say they have invested it in the construction and rapid development of its Chennai manufacturing facility, which had a budget of around 350 million euros before the firm decided to further its plans for truck and bus radial tyre production last year. Anything else looks like to have been absorbed by the company’s liabilities. However, regarding the Chennai investment Tyres & Accessories recently had the opportunity to tour the facility, see production in action and learn more about the thinking behind the investment.
Maine Industrial to Close Plant, Ganz Returning
NewsMaine Industrial Tire LLC is restructuring its global business operations and welcoming an old friend back into the fold. The company says it will close its Gorham tyre plant in the US state of Maine, relocating that production to plants in Pennsylvania and China. The shift is expected to take six months, Maine Industrial said. The plant is being closed “in order to reduce both manufacturing costs and operating expenses,” the company added. “Not only will this result in a financially stronger company, by streamlining operations, Maine Industrial Tire will be able to provide customers with the same high quality, premium products at competitive prices.”
