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.
Ceat Limited has outlined a £76 million capital expenditure plan spread over the next three years. The plan includes setting up of two greenfield plants, one for radials and the other for speciality tyres. This is a more ambitious plan than previously reported, as the company was expected to establish a single plant where all the above-mentioned activities would take place.
In December last year, 12 sales staff from Belgian tyre distributor Deldo Autobanden paid a visit to the new factory of their partner South China Tire, in Guangzhou.
The fifth China International Tire Expo, (CITExpo) is being held in Shanghai this September. Since the first exhibition was held in 2003 the CITExpo has grown rapidly and strengthened its position as one of Asia’s leading tyre events. The exhibition’s organisers, Reliable International Exhibition Services, report that this year’s upcoming event shows every sign of being another record breaking year. From the exhibition’s inception until 2006 the CITExpo was held solely in the west wing of the Shanghai Everbright Convention & Exhibition Center in the city centre, but this year the increased number of exhibitors has meant that the centre’s east hall has also been needed.
South China Tire, producer of Sunny and Wanli branded tyres, is to expand capacity to around 15 million tyres a year with a new plant. The first phase of the new plant began production in September 2006, and offers additional production of two million tyres (the total capacity is six million tyres). The total project will take up till 2012 to complete, with a final annual capacity of around 15 million tyres.
(Akron/Tire Review – Korean Times) Korean tyre makers are going global and setting up operations overseas – Hankook Tire is constructing a factory in Hungary, Kumho in Vietnam and Nexen in Qingdao, China.
A major marketing campaign is underway to attract visitors from around the world to this year’s Brityrex International 07 show at the G-MEX Exhibition Centre in Manchester. More than 60,000 free entry tickets to the exhibition are being distributed throughout the UK tyre industry and to professionals around the world. Each exhibitor at May’s show also has the opportunity of taking hundreds of tickets to attract their own customers and contacts to the event.
Germany’s Federal Cartel Office and corporate competitiveness watchdog, the BundesKartellamt, has given the all clear for Continental’s purchase of UK based company Thermopol International Limited. The German automotive supplier intends to integrate Thermopol into the Fluid Technology business unit of its daughter company, ContiTech.
Hankook Tire Co., South Korea’s largest tyremaker, posted a 22 per cent drop in full-year profit, citing higher materials costs and a stronger South Korean won as the primary reasons.
Amerityre Corporation, a developer of polyurethane elastomer tyre technologies, has announced it has successfully completed significant portions of the pending FMVSS 139 safety standard testing on its Arcus® run-flat tyre design. FMVSS 139, the NHTSA testing standard for high speed and endurance, will come into effect this July.
UK based manufacturer of automotive and aerospace components, GKN, is taking its expansion within the Chinese market one step further following the acquisition of one of the country’s leading manufacturers of off-highway wheels. GKN has also announced details of a new investment and joint venture.
According to automotive industry analysts, during 2006 China overtook Japan to become the world’s second largest market for cars. During 2006 7.2 million vehicles were sold in China, a 25.1 per cent increase on the previous year’s sales. Japan, now ranked number three, sold a mere 5.7 million vehicles in comparison.
In the US the National Highway Traffic Safety Administration (NHTSA) has ruled that a mislabelled Chinese lorry tyre presents a safety issue and therefore cannot be sold for use in the United States.
In a move that shows that not even up and coming players in the tyre world can afford to be complacent, a large Indian transport provider has ordered a trial run of tyres from China to evaluate their value for money.
Giti Tire (China) Investment Co. Ltd, China’s largest tyremaker, has voiced its intention to raise tyre production capacity at its Hualin factory. The company intends to boost annual capacity there by a further 4.6 million tyres from its current 3.4 million by the end of 2008.
Giti Tire operates six factories in Mainland China, the largest of these being in Anhui and Fujian provinces. The company recently announced plans to sell bonds in order to free up revenue for capital expenditure.
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.
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