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.
South China Tyre and Rubber Company travels to Brityrex with the mission of continuing its expansion into the international market with its two brands, Wanli and Sunny. Established in 1988, SCTR is located in China’s Pearl River Delta, owning two Guangzhou facilities, which are able to offer a production capacity of approximately 10 million sets of tyres annually.
According to company president and chief executive officer Richard J. Kramer, Goodyear “pulled the right levers” during the economic downturn and is thus well positioned for growth opportunities presented by the recovery. “During the second quarter, we achieved significant progress across all our businesses, driven by a combination of sales growth and cost actions,” said Kramer during a conference call on July 29. “Versus the comparable prior year period, sales were up 15 per cent, units up 10 per cent and segment operating income was $219 million, an improvement of more than $190 million from the second quarter 2009.”
Figures released by Pirelli and Michelin show growth in on-road tyre markets across all global regions during June 2010. The Italian and French tyre makers respectively estimated growth in Europe’s OE passenger car tyre market to be nine per cent and 8.9 per cent during the month, with year to date growth in this segment given as 22 per cent and 25.2 per cent. For the European replacement segment, Pirelli and Michelin report June market growth to have been 11 per cent and 9.8 per cent respectively, with year to date growth figures exactly the same for both companies. Within Europe the OE truck tyre market is estimated by Pirelli to have grown 69 per cent year-on-year in June, while Michelin logs a 74.7 per cent growth for the month. Year to date growth is given as 30 per cent and 28.7 per cent. According to Pirelli European replacement market truck tyre sales grew 20 per cent in June, with Michelin providing a very similar figure of 19.7 per cent. Year to date, Pirelli and Michelin estimate growth in this segment to be 27 per cent and 28.7 per cent respectively.
Carlisle Companies Incorporated reported net sales from continuing operations of US$709.4 million for the quarter ended June 30, 2010, an 11 per cent increase from the second quarter of 2009. Income from continuing operations decreased 32 per cent to $38.9 million, or $0.62 per diluted share, and net income was $38.6 million, compared to net income of $55.5 million for the second quarter 2009.
Sumitomo Rubber Industries Ltd has announced plans to build a new factory in China. Construction is set to begin in September 2010, with a total investment of US$297 million (267 billion yen) earmarked for the project. Production is planned to begin in July 2012 with output rising to 15,000 tyres a day (after 139 billion yen capital investment) at the end of 2014. The second phase will see the company spend another 96 billion yen of capital investment and output increasing to 30,000 tyres a day at the end of 2017.
Reports from the Farnborough International Airshow indicate Dunlop Aircraft Tyres has an eye on setting up overseas manufacturing operations. Speaking at the show, company chairman Ian Edmondson said that Dunlop Aircraft Tyres may establish a factory in China in five years time, when the tyre maker has “no room to expand in our existing location.
On 21 July a Federal judge upheld a jury's verdict to award Jordan Fishman $26 million in damages in a case naming Shandong Linglong Rubber Company, Ltd of China and Al Dobowi Tyre Company, LLC. According, to Fishman’s lawyers, the ruling results from “the illegal copying of Mr. Fishman's blueprints for unique asymmetrical underground mining tyres.” However, sources close to the defence case said they dispute this and that defendants Al Dobowi are going to appeal.
Last night saw the celebration of Dunlop Aircraft Tyres’ Centenary take place in earnest following an open day and a visit to the company’s Fort Dunlop plant by The Duke of York, with the launch of a new commemorative book, the premiere of a film by artist Angus Boulton commissioned to celebrate the centenary and the introduction of a new corporate video. The venue for the prestigious occasion was The Wapping Project, London’s last Hydraulic Power Station, now regenerated as a post-industrial exhibition space and restaurant by Australian theatre director, Jules Wright.
On Friday 15 July 2010 Florida-based mining tyre design company Tire Engineering and Distribution L.L.C. gained a $26 million verdict against Shandong LingLong Rubber Co. Ltd. and Al Dobowi Tyre Co. L.L.C. for allegedly conspiring with a former employee (Sam Vance) to steal proprietary designs for underground mining tyres. The default verdict was issued when Vance failed to appear before the court. The news is the latest in a line of related claims and follows an Appeal Court decision to overturn an earlier $59 million award verdict earlier this year. In the latest case T&A understands that despite the jury verdict being given, the case has not yet reached the judgement stage, where the amount and even the ruling as a whole can be modified by a judge. Furthermore, due to the complex nature of the case, the defendants are expected to appeal if they are finally found against.
Hankook Tire reports its profits in Korea jumped 22.4 per cent in the second quarter of 2010 to KRW 822.3 billion (£443.1 million), a figure the Korean tyre maker claims to be its highest ever quarterly result. This quarter high water mark was achieved on the back of a 13.0 per cent year-on-year increase in global consolidated sales, to KRW1.4 trillion (£754.4 million) and a 22.7 per cent year-on-year growth in operating profit to KRW 177.7 billion (£95.7 million).
The Schaeffler Group – the German company best known to us for its dealings with Continental – has given news of its plans to carry out further expansion in Asia, an area in which it says localisation is opening up additional opportunities for growth. Investments totalling 300 million euros will be made in this region, including the construction of two factories in China to supplement the existing manufacturing facilities there which are operating at full capacity, and one factory in India. Construction of the new factories is to be completed by 2012. Research and development capacities in Japan and India will be expanded as part of the investment, and production capacity at the company’s eleven existing manufacturing locations (in China, India, Korea and Vietnam) will also be increased.
Data and estimates from the Association of Natural Rubber Producing Countries (ANRPC) indicate global supply of natural rubber will grow this year at a slower rate that previously anticipated. Forecasts based on preliminary estimates and reports available up to mid-June point to a 5.2 per cent growth, lower than the 6.3 per cent rate anticipated in March and 6.1 per cent rate anticipated in May.
Hankook Tire has established a Global Education Center in Korea, a facility it says is intended to “collaborate and foster the company's production system.” Located within the tyre maker’s Daejeon plant, the new centre is intended to enhance the skills and abilities of staff working in production and other positions at factories in Korea, China, Hungary, as well as in plants Hankook intends to set up in the future. Through the Global Education Center, Hankook Tire expects to strengthen collaboration between members of its global production network, thereby ensuring production quality is of a unified standard.
Guangdong Greatoo Molds Inc is organising an international customer conference, which is set to run between 26 August and 2 September 2010. Senior technical consultant RNK Krishnan told Tyres & Accessories that the firm is inviting all its “vip customers from many countries for this event.” According to Krishnan, it is for the first time any mould company has organised such a event for its customers and the hopes is it will strengthen working relationships as Greatoo plans to focus on international customers all the more in future.
China-based Sihong Benteng Rubber Products Co, Ltd has announced plans to launch two new solid tyres. The firm reports that it has developed the new products, which come in 40×15-24 (385/65-24) and 445/65-24 sizes for boom lift applications. Last month the firm told Tyres & Accessories that it now has the capacity to produce 5000 off-the-road tyres/year. Situated five hours from Shanghai airport and 2 hours from Nanjing airport by car, the company reports that it is “mainly engaged in manufacturing various specifications [of] engineering tracks, agricultural tracks, OTR and bicycle tyres.”
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