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.
Reifen Essen 2006 sees the launch of a new private brand label tyre, named Infinity. The rights for world-wide distribution are held by the Al Dobowi Group, based in Dubai and its divisional Company responsible for marketing in Europe is Goldspark Trading Ltd.
Having exhibited at Reifen 2004, The Netherlands-based specialist in industrial tyres – Bandengroothandel Mast B.V. – will once again be inviting both established customers and new contacts to visit their stand at this year’s Essen Show. Examples of the company’s well-established CargoMaster brand of industrial and harbour tyres will be on display and be supported by the LiftGuard brand, which specialises within the budget sector of the industrial market.
Kyoto Japan Tire Corporation Ltd. is a Japanese company specialising in the development, design, manufacture and marketing of various sizes of automotive pneumatic tyres and car batteries for international markets. The company designs and develops its tyres in Japan and produces them in China. Kyoto Japan has marketing offices in strategic countries throughout the world to better serve its demanding clients.
Toyo Engineering Corp. has received a contract for a synthetic rubber plant to be built by Bridgestone (Huizhou) Synthetic Rubber Co., Ltd., a Bridgestone Corp. affiliate, in China. The plant will be constructed in the Huizhou Dayawan Economic and Technological Development Zone in Guangdong Province to produce 50,000 tonnes a year styrene-butadiene rubber (SBR). The Rubber World report said Toyo is responsible for engineering, procurement of equipment and materials, and construction on a lump-sum basis, plus commissioning assistance. The plant is scheduled for completion in the first half of 2008.
Total Chinese tyre production will reach 3 billion units annually in the next five years, according to China Rubber Industry Association (CRIA) figures. Of these 70 per cent are expected to be radial tyres, with radialisation set to spread to the construction field. The huge production figures will also be predominantly made up of tubeless truck and bus and high-speed passenger car radials, according to the association. As far as machinery is concerned 11 out of the world’s top 12 tyre producers use Chinese-made rubber machinery in their production, according to CRIA chairman, Ju Hongzhen.
Once again, Dutch tyre wholesaler De Klok Banden will be present at the Reifen 2006 exhibition in Essen. De Klok handles all of the well-known, premium tyre brands and also has a number of exclusive agencies for imported brands.
Included in the names in the De Klok portfolio are Nokian, Nankang (for which De Klok is the exclusive supplier for Germany and the Benelux countries), Delfin, GT Radial (for the Benelux countries) and Runway; a brand manufactured in China.
At first sight it is difficult to tell whether the Tires & Rubber show, held for the ninth time in Moscow recently, is a show for the industry or the trade. Compared with the number of new tyre manufacturers, material suppliers, machinery and equipment providers, the tyre trade seems to have gained some ground at this year’s show compared to 2005. This statement applies to Russian as well as European companies.
For example this year Dutch company Van den Ban Autobanden was exhibiting in Moscow for the very first time. The goal was to introduce the company and sound out the market. “First we want to present ourselves here,” explains commercial manager Cyril Versteeg in an interview with Tyres & Accessories. In fact, there have been business contacts with Russian companies in the past but Van den Ban concentrated mainly on the Eastern markets of the recently enlarged European Union. “These markets are more accessible,” Versteeg adds. At Van den Ban’s headquarter in Hellevoetsluis there are sales personnel that speak all the local languages of these markets, he adds.
The market for cast aluminium wheels is reaching saturation point. While the low-volume, image focused brands are defending their territory in a crumbling segment, the mid-price segment has almost disappeared. At the same time, while the low-price segment may continue to move significant volumes of wheels, branding is to a large extent interchangeable.
Alloy wheels may still be most common tuning part, but that’s just it. Being the most frequently upgraded part means that it loses its exclusivity. Cast aluminium wheels have become a commodity and in some cases are already cheaper than steel wheels.
Federal Corporation shipped 1.7 million tyres in the first quarter of 2006 – the largest quarterly total in the company’s 52-year history. The figure reflects increased production at Federal’s Taiwanese and Chinese bases. In March alone the company delivered 670,000 tyres.
Over the years Autopromotec has established itself as one of, if not the, most important international exhibition of products, garage equipment and servicing. The 22nd show will be held in the Bologna Trade Fair Centre from 23 – 27 May 2007 and will feature all vehicle repairing and maintenance sectors: from garage equipment and products, to testing lines, diagnostic tools, tyres, spare parts, gas station and car wash equipment, tyre retreading and engine reconditioning materials and plants, multi-purpose equipment, car servicing, official and independent service networks.
China Wheel runs four chrome-plating factories with an overall annual capacity of 945,000 units. In Taian (Shandong province) approximately 240 employees produce 240,000 units; in the Donghua chrome-plating factory 120 co-workers make 300,000 units; in Donghui 80 people make 105,000 units; and in Zengcheng 200 produce 300,000 wheels annually (all three locations can be found in Guangdong province).
The Yokohama Rubber Co, Ltd, has announced that it established Suzhou Yokohama Tire Co., Ltd. earlier this month in Suzhou City, Jiangsu Province, China. Beginning October 2007, the new company will manufacture and sell steel radial truck and bus (TB) tyres. The company invested US$81 million in the facility and expects to produces 350,000 tyres. Up till now Yokohama has exported Japanese produced replacement tyres into the Chinese market.
The huge Republic of China is an automotive growth market par excellence. And that applies to the automobile manufacturers as well as their suppliers. The country is not only at the centre of low-price manufacturing for “the rest of the world,” but has also become an enormous sales market in its own right. The cluster of cities in the east of the country is home to millions upon millions of inhabitants and the streetscape is shaped by the sight of premium segment cars and their upper middle class owners. These cities also have well-developed road systems. Rush-hour traffic jams are another familiar sight for anyone used to driving in western metropolises – and that’s despite the numerous additional lanes alongside just as numerous skyscrapers.
Gacosia, owned by the Tsui brothers, has its headquarters in Hong Kong and a subsidiary in California. China Wheel produces Gacosia its alloy wheels, and in turn the manufacturer considers Gacosia as one of its two self-brands (the other being “Finn”). Stephen Tsui, Gacosia managing director, and his team, spend most of their time in China Wheel’s office space in Guangzhou: “We are very close partners,” he says. The relationship between the wheel brand and its manufacturer – and this is not uncommon in China – is not based on actual contractual agreements, as is the standard in the western countries. Instead it’s a case of “you scratch my back and I’ll scratch yours,” so to speak.
Zhang Sheng is the “King of Moulds,” he and business partner Wang Ying lead the Foshan Nanhai Superband Mould Co., Ltd., based at an industrial estate in Foshan town centre (Nanhai district, Guangdong province). And what’s more it is probably the largest manufacturer of moulds for aluminium wheel casting in the world. The factory produces six moulds a day or 2000 per year says managing director Zhang Sheng – that’s not the capacity, but the actual output. In addition the company produces moulds for well-known international companies such as General Electric, Toshiba, Sharp and Sanyo in order to service their non-wheel casting needs.
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