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.
On 30 October, Sailun announced it is building an industrial park in Cambodia called “Cambodia Kampot Special Economic Zone Project” (Kampot SEZ). Furthermore, Sailun said that it is preparing to set up a wholly-owned subsidiary, Kampot Bay Investment Co., Ltd., in Cambodia, which will be responsible for implementing the Kampot SEZ. The project’s total investment is about US$110 million, which will be covered by Sailun’s self-raised funds.
Zhongce Rubber Group Co. Ltd. (ZC Rubber) reports the first truck tyre made at its new Indonesian subsidiary, PT. Matahari Tire Indonesia (MTI), has rolled off the production line. This milestone was celebrated with an official ceremony at the MTI factory located in the Kendal Industrial Park, Semarang, Indonesia.
In the first half of 2024, Guizhou Tyre’s revenue and net profit were 5.174 billion yuan (about £560 million; €670 million) and 427 million yuan (about £46 million; €55 million), up 16.51 per cent and 25.67 per cent year-on-year. During the reporting period, the company produced 4.7942 million tyres, up 18.81 per cent year-on-year, and sold 4.7175 million tyres, up 19.75 per cent.
The Shanghai Stock Exchange (SSE) has awarded Linglong Tire an ‘A’ rating for information disclosure for the fifth consecutive year. The SSE’s rating system, ranging from A to D, evaluates listed companies based on the quality, accuracy, and timeliness of their information disclosure. An A rating highlights Linglong’s commitment to transparency, regulatory compliance, and strong corporate governance.
Since September, the International Trade Administration Commission of South Africa (ITAC) has launched an investigation into the circumvention of anti-dumping investigations by redirecting tyres from China to Cambodia, Thailand and Vietnam.
At 2.28 billion yuan (about £250 million; €290 million), Doublestar’s revenue was almost the same year-on-year in the first half of 2024. Doublestar was still in the red during the reporting period. However, compared with the same period in 2023, its losses were further reduced to 57.1 million yuan (about £6.2 million; €7.4 million). According to Doublestar, “PCR product profitability continues to improve” but “insufficient market demand for truck and bus tyres” is why the tyre manufacturer is still losing.
Effective 1 October 2024, Mexico has imposed anti-dumping duties on passenger car and light truck tyres (PCR) from China. In the list published by the Mexican investigation agency, Zodo has the lowest tax rate of 5.18 per cent. Changfeng, Haohua, and Linglong-made products are being required to pay anti-dumping duties of 7.16 per cent, 11.55 per cent, and 19.37 per cent respectively.
Bridgestone appointed Zhao Laihong as general manager of Bridgestone (China) effective 1 January 2025. In this role, he will be responsible for the tyremaker’s “business development and strategic planning” in China. Bridgestone said that Zhao Laihong’s “deep understanding of the Chinese market, accurate positioning and strategic vision for Bridgestone’s development, and rich experience in foreign-funded enterprise management will lead Bridgestone’s business in China into a new stage of development full of vitality and vigour”.
Sailun Group plans to merge two wholly owned subsidiaries tasked with establishing additional tyre and materials manufacturing capacities. The company emphasises that the intended absorption merger announced on 24 September will not have a significant impact on its business or financial situation.
Doublestar has sold its Guangrao-based factory, Guangrao Jixing, to Lubo Rubber for 205 million. The two parties signed a Property Rights Transaction Contract in September 2024, confirming what we published in May 2024.
Earlier this year, during a recent visit to China, on the sidelines of the GRTAE expo hosted in what can only be described as the tyre capital of the People’s Republic, Tyres & Accessories enjoyed a panel discussion with Car & Tire editor, Alex Shi. Formerly an executive within the tyre industry – including time with Goodyear – Car & Tires is known for its focus on tyres and is particularly strong when it comes to tyre testing and in the social media space. Indeed, they are something of a force online, with some 300,000 followers on WeChat, which is a bit like WhatsApp here in the West. True to form, not only was our discussion hosted in the main meeting room at GRTAE, it was also video recorded and streamed live to a potential audience of hundreds of thousands of Chinese-language followers in the East. Beginning with the current state of the respective Chinese and European tyre markets in light of recent macro-economic market trends, our discussion then moved onto the similarities and differences between the European and Chinese online tyre sectors.
Bridgestone, Dunlop, Goodyear and Michelin branded aircraft tyres worth over $30 million (£23 million) have found their way into Russia “via intermediaries” despite being banned, according to Ukrainian government agency NACP. The Russian military’s ongoing need for tyres is well-reported in these pages. As is the fact that old, poor-quality and sometimes low-cost Chinese tyre imports have been failing on the battlefield. But now is the first occasion when premium brand tyres have been linked with the Russia-Ukraine war. There is no suggestion of wrongdoing by Michelin, Goodyear, Dunlop or Bridgestone.
Aeolus recently decided to increase the production capacity of giant tyres again. The tyre manufacturer said it will invest about 1.464 billion yuan (about £160 million; €180 million) to add 20,000 giant engineering radial tyre production capacity. Through the new project, the tyre manufacturer is trying to “further optimise the product structure, seize the high-end market, and increase market share.”
The Shandong authorities have presented a 2024-2027 action plan designed to improve the productivity of the tyre industry in its jurisdiction.
Tyrepress China found that Shandong Province is trying to build two tyre industry clusters, Peninsula and Lubei, accounting for more than 80 per cent of the province, with revenue of 60 billion yuan and 80 billion yuan, respectively.
Linglong Tire has made a multi-year agreement with Chelsea Football Club. The partnership will see Linglong and Chelsea “create bespoke content and experiences in key strategic markets, as well as building Linglong’s global presence through pitchside placements with the men’s and women’s teams, at Stamford Bridge”.
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