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.
Results for the first quarter of 2010, released April 22, show Hankook Tire’s sales to have increased 17.6 per cent year-on-year to 1.3 trillion won (£780.4 million) and operating profit to have jumped 501.2 per cent to 212.2 billion won (£124.1 million). The tyre maker’s operating profit to sales ratio was 15.9 per cent, up from 12.6 per cent in the fourth quarter of 2009.
Plans for Hankook Tire to build a new factory in China were outlined on April 22; representatives of the South Korean manufacturer said the construction of a new facility there will aid Hankook’s efforts to consolidate its status as the leading international tyre manufacturer in China. The company also intends to increase its sales there by 15 per cent to US$1.21 billion this year.
S&H Tyres BV has signed a contract with Kossen BV to exclusively distribute the company’s Zeetex truck and bus tyre range in Western Europe. According to S&H representatives, the company has more knowledge in PCR, UHP and SUV tyres than in the truck tyre sector, leading to the decision to choose “a trustful and respectful distributor in this field.”
On April 20 Bekaert open its first research and development centre outside of Belgium. The Asia Research and Development Center in China’s Jiangsu Province is intended to strengthen the company’s “commitment to develop and supply innovative products to Asian customers while enhancing its technological leadership in the region.”
Located in Beijing, Best Choice is a leading international tyre wholesaler in China having long term close cooperation with domestic manufacturers and overseas tyre distributors. "Best Choice is able to offer a range of excellent quality products that are economically priced. In 2009, the company exported over tyres to the value of over 50 million US dollars," said managing director Stephen Wu.
Techking Tires says it intends to place a focus on tyre management systems in 2010. During an interview, company president Sheng Rongsheng said “this year, Techking is going to invest on the research of the total tyre management system. We hope the system would help our customers to manage and use their tyres more efficiently.” To help deliver tyre management solutions, during 2010 Techking is establishing six new Techking Service Centers within China and more than 20 will be built up in overseas markets.
Reigning Formula One World Champion Jenson Button used Bridgestone's soft compound and intermediate tyres to win the Chinese Grand Prix in mixed weather conditions at Shanghai International Circuit on April 18. The British driver piloted his Vodafone McLaren Mercedes across the line just one and a half seconds ahead of team-mate and fellow countryman Lewis Hamilton. Button started the race using soft dry compound tyres, with two sets of intermediates seeing use later in the day. Hamilton made four stops, employing a soft-intermediate-hard-intermediate-intermediate tyre strategy.
Jenson Button and Lewis Hamilton set the fastest times in Friday’s morning and afternoon practice sessions for this weekend’s Chinese Grand Prix, the former on the hard compound Bridgestone Potenza tyre, the latter on the soft. Conditions were described as cool and dry for the afternoon session, which benefitted users of the soft compound since it was quicker to warm up, as Bridgestone’s director of Motorsport Tyre Development, Hirohide Hamashima said: “The soft compound provided the fastest lap time today and a quicker warm-up, although the overall lap time difference was not as big as we have seen at some tracks.
Engineering company Laursen & Toubro (L&T) and Japan-based Mitsibishi Heavy Industries (MHI) are reportedly planning to enter into a “heavy industrial tyre” joint venture in India. According to reports in India’s Business Standard, L&T has “initiated discussions with MHI to form a joint venture that would manufacture a wide range of heavy industrial tyres in the country.” Quoting a source close to the talks, the newspaper added: "This would bring in a good blend of high-technology from Japan and low-cost manufacturing from India. The JV would also help to create a great synergy in L&T's construction business."
Bridgestone Americas Tire Operations has notified the US National Highway Transport Safety Organisation that it intends to recall a total of some 768 non-compliant tyres imported from Japan between 2006 and February 2010. The offending items, Potenza RE050A, B390 and Turanza ER30 products, were manufactured for use on North American built vehicles intended for export markets and thus do not feature the DOT symbol and other labelling information legally required in the United States.
Using statistics gathered by the tyre branch of the China Rubber Industry Association, Shandong Linglong reports that the value of its export deliveries reached RMB 4.139 billion (£394.4 million, $606.5 million) in 2009 on the back of an export delivery volume of 12.969 million units, giving the company an export income of more than US$600 million for the second consecutive year. This is, the company says, the largest of any tyre company in China – Shandong Linglong comments that average export delivery value for the Chinese tyre industry last year was RMB 3.718 billion (£354.3 million, $544.8 million) and average export volume was 11,748,000 units. The company’s total sales revenue for both domestic and export markets was RMB 13.1 billion (£1.25 billion, $1.92 billion).
Bridgestone is readying itself for the Chinese Grand Prix at the Shanghai International Circuit on 16-18 April, in what the company’s Motorsport division director calls “a very important location” due to the rapid expansion of the country’s automotive market. In this respect, Hiroshi Yasukawa continues, “it is good for Bridgestone to have a highly visible event like the Chinese Grand Prix to promote our technology here. In China we have tyre production, natural and synthetic rubber and steel cord facilities, a technical centre and proving ground, as well as a number of plants for our diversified products.”
The Hangzhou Yokohama Tire Co., Ltd factory in China’s Zhejiang province has become the first Yokohama Rubber site outside of Japan to achieve "complete zero emissions" status. After conducting on-site investigations of all contractors commissioned to dispose of waste from the passenger car tyre production plant and associated sales operation, Yokohama has verified that none of the waste is subject to direct landfill disposal.
Despite the effects of the global recession, Guangdong Greatoo Molds Inc is planning to increase its Chinese mould making capacity to 5000 moulds and 3000 containers by the end of 2010, up 25 and 20 per cent respectively from current levels of 4000 moulds and 2500. In order to do this, the company is adding “lots of direct engraving machines in our new plant and these machines are state of the art thus reducing the machining time substantially” in addition to the firm’s existing plans for 200 hydraulic curing presses and CNC machines, according to company representatives.
Based on the theme of “Interpreting Industry Legislation and Regulations, Exploring Cutting-edge Technologies and Trends,” event organisers are publicising plans for the second annual Tire Technologies Congress in Shanghai, China. As you might expect the conference will focus on the most controversial legislation and trade issues, but there are will also be technology sessions.
Organisers JFPS Group report that the event will centre on speech delivered by over 20 general managers and research and development directors from leading tyre companies such as: Bridgestone, Goodyear, Giti Tire, Pirelli Tyre, Cooper Tire, SIBUR – Russian Tyres, Apollo Tyres, Toyota Motor Corporation, Dunlop Aircraft Tyres, Doublecoin Tire, Guizhou Tire, Yellow Sea Rubber, South China Tire & Rubber, Hangzhou Chaoyang Tire, Aeolus Tyre, China National Tyre & Rubber Guilin, Bayi Tire.
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