Giti Tire to Sell Bonds
Giti Tire, the largest manufacturer of tyres in China, reportedly intends to raise US$200 million from its first bond sale, being held to raise revenue for capital expenditure and possible acquisitions.
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.
Giti Tire, the largest manufacturer of tyres in China, reportedly intends to raise US$200 million from its first bond sale, being held to raise revenue for capital expenditure and possible acquisitions.
(Akron/Tire Review) Citing the effects of a global shortage on commercial truck tires, Navistar has opted to add China-made Double Coin radial truck tires to its OE mix. Navistar signed a deal with China Manufacturers Alliance to put Double Coin radials on “several platforms” of its Class 4-8 International vehicles and IC Corp. buses.
The move marks the first time that a China-produced truck tire has earned an OE position with a major North American truck producer.
Hankook Tire Co., Ltd have released details of a safety related defect present in certain Aurora brand medium duty truck tyres. The affected tyres were manufactured between March 1 and September 5, 2006 at Hankook’s factory in Jiangsu, China, and the company has issued a recall of the 7,890 affected tyres.
Hankook reports that the tyres in question meet official standards but did not completely meet the company’s own endurance criteria. Therefore it was judged that the tyre may become prematurely unserviceable if exposed to extreme conditions of use or abuse.
Recalled tyres will be replaced free of charge until June 30, 2007, at which date a partial credit dependant on remaining tread depth will be given. Further details of the recall can be found on Hankook’s Aurora brand website www.auroratireusa.com.
French tyremaker Michelin received several prestigious accolades in the important Chinese market during the closing months of 2006. Most significant of these was from Auto Magazine, claimed to be China’s leading automotive publication and possessing a monthly circulation of 150,000 copies, who voted Michelin as their Brand of the Year for 2006.
On top of this, Michelin’s Onway campaign received the South Urban News’ – a general interest magazine with a print run of 800,000 copies – Annual Marketing and Innovation Award in a ceremony described as being the “Oscars of the automotive industry.” Furthermore, the campaign received a runners-up prize in the Chinese Effie awards for effective advertising campaigns.
Bridgestone Corporation has announced its intention to construct a facility in Japan for producing large and ultralarge radial tyres for fitting to mining and construction vehicles. This decision comes in response to increasing worldwide demand for such tyres, fuelled by escalating global mineral resource production.
The new facility will be built in the southern city of Kitakyushu, on a 20 hectare site within the Hibikinada Industrial Area. Requests for building permits have already been made, and following negotiations with city officials Bridgestone hopes to conclude an agreement during the first half of 2007.
Carlisle Companies Incorporated, parent company of Carlisle Tire & Wheel, have on December 18 announced details of their agreed purchase of a tyre group in China. This latest acquisition adds to the US company’s already sizable manufacturing base in that country, a presence the company has had for more than a decade.
Carlisle will acquire the assets of Meiyan Tire Group, based in Meizhou, Guangdong Province, and the deal is expected to be finalised by March 31.
(Akron/Tire Review) Coral Springs, Fla.-based importer/exporter World Trade Association has become the exclusive North American distributor of Uzmai International produced Maitech steel radial OTR tires for construction, mining and fire/rescue applications.
Maitech tires are produced in Turkey and marketed by Italian exporter Uzami. WTA said it will offer Maitech radials in sizes from 15.5R25 to 445/95R25.
South Korean tyremaking giant Hankook have announced details of an agreement to supply its tyres to Audi as of mid 2007. The agreement signed with the German manufacturer will see Hankook’s high performance Ventus S1 Evo tyres fitted to the Chinese market Audi A4 and A6L, the long wheelbase version of the A6 starting in June.
Cheap imports of scrap zinc-based balancing weights are poor quality and contain dangerous levels of heavy metals, such as cadmium. Premium weight manufacturers told Tyres & Accessories that preliminary research shows such imports may contain 50 times the level of cadmium currently allowed in the products.
Headquartered in Johnstown, Ohio and founded in 1939, Tech International is a family business that describes itself as the world’s leading producer of tyre and tube repairs and wheel service solutions. According to the official literature, the company markets more than 5,000 products into over 110 countries throughout the world and is recognized as one of the top exporters in the United States.
Beijing yesterday released plans aimed at increasing the use of recycled materials and boosting the city’s solid waste-recovery capacity by 2010. The plans included recovery targets of 95 per cent of waste automobiles and 70 per cent of end of life tyres. In 2005 only 4 per cent of Beijing’s retreadable casings were retreaded, the China Daily newspaper reported.
Cheap imports of scrap zinc-based balancing weights are poor quality and contain dangerous levels of heavy metals such as cadmium. Premium weight manufacturers told Tyres & Accessories that preliminary research shows such imports may contain up to 50 times the level of cadmium currently allowed in the products.
See the January issue of Tyres & Accessories (published in the third week of the month) for the full story.
Taiwan’s leading tyre manufacturer, Cheng Shin Rubber Industrial Co, has announced plans to invest US$120 million in China during 2007. This investment will primarily take the form of expansion in production capacity.
The history of the Triangle Tyre Co. Ltd goes back three decades, when the Weihai Tire Factory opened a plant in Weihai, Shandong Province, China. In 1997 it changed its name and began trading as Triangle Tyre Co; part of the Triangle Group of companies. Since then the company has grown rapidly and it is now aiming at nothing less than being a top 10 player in the global tyre market.
Triangle is currently one of the top 500 companies in China and employs 6,300 staff. Depending on which criteria you use, Triangle is the 12th, 13th or 14th largest tyre manufacturer in the world – not bad for such a young company. The turnover last year was US$980 million and has risen by 50 per cent in the past three years.
(Akron/Tire Review) H.Y. (Greg) Pae has been named president of Hankook Tire American Corp., replacing J.W. Choi, who was reassigned to head Hankook’s China operations. Pae took over as 1 December. Pae most recently served as executive vice president of Hankook’s U.S. arm, and has had a number of international assignments during his 20 years with Hankook.
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