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.
From the 1 April China will lower its “consumption tax” on a range products including tyres. The Ministry of Finance and the General Administration of Taxation have decided to lower the consumption tax on passenger car tyres to 3 per cent from its current rate of 10 per cent.
Ford’s Volvo Car Corporation has said it will begin making cars in China this year, at an existing Ford joint venture plant. The initial target is for 10,000 cars a year to be produced in 2007.
Goodyear Tire and Rubber Co. says it expects sales in Asia to rise 6 per cent this year compared with an 8.5 per cent increase in 2005, Asia Pacific President Pierre Cohade told Reuters. “We anticipate the industry in Asia to grow 5 per cent this year and we are aiming to gain 6 per cent,” Pierre Cohade said on the sidelines of an American Chamber of Commerce event in Shanghai. Cohade said the forecast was based on a mild slowdown in growth in the China market, one of its major growth drivers.
(Akron/Tire Review) With its operations in China growing quickly, Cooper Tire & Rubber Co. brought in an outside expert to head that business. Margaret Sheng was named vice president of Cooper’s China operations and will be based in Shanghai, China.
Most recently, Sheng was regional executive director for Lear Corp. in central and southern China, and she has worked as director, general manager and operations manager for automotive manufacturers in China, Spain, the Philippines and US.
Automechanika Shanghai 2006, which is being held at the Shanghai New International Expo Centre from 30 November to 2 December “will be twice the size of its predecessor in 2004”, say the organisers. 23,000 square metres of space in two halls has been earmarked for the show.
The 2004 event was the show’s debut and the fact that National pavilions from Germany, Singapore and Turkey have already confirmed their participation in this year’s show demonstrates the growing importance of China in the world automotive sector.
In 2005 Pirelli & C SpA achieved double digit growth in revenues (+14.6%), operating profit (+32%) and net profit (+31.3%) compared with the previous year. Publishing its 2005 full-year results, the group explained that it had reduced net debt to 1,177 million euros at the end of 2005. At the consolidated level, group revenue totalled 4,546 million euros, an increase of 14.6 per cent from 3,967 million euros in 2004. EBITDA totalled 568 million euros (12.5% of sales), an increase of 21 per cent from 470 million euros in 2004 (11.8% of sales).
The Yokohama Rubber Co., Ltd. has announced changes in its line-up of directors and corporate officers. The assignments will be effective on April 1, 2006.
Korean manufacturer Nexen Tire has strengthened its UK presence by launching its Roadstone brand on the market. This will be exclusively distributed across the UK by award winning wholesaler BITS. Roadstone has been available in the Republic of Ireland through Phillip White tyres since November. The news that Nexen’s Roadstone brand was coming to the UK follows that company’s decision to open a London office at the end of 2005. Tyres & Accessories interviewed Nexen managing director, David Sul, Frankfurt office manager, Anthony Han and new London office manager Bong Lee at BITS’ head office in Bristol.
Much has been written about the emerging Indian, Chinese and Russian markets, but what about South America? This continent is full of potential, something that is demonstrated by the fact that all the major players are there (Pirelli, Goodyear and Bridgestone/Firestone being particularly strong) and are already positioning themselves for the next market explosion. However for all its potential, the continent can also be described as tumultuous – at the end of November 2005, for example, Bridgestone/Firestone had to quell a violent dispute at a plant in Venezuela.
Gloucestershire, UK-based, Watts Industrial Tyres has expanded its production facility in Brazil, together with its joint venture partner, Souza Pinto Ind.& Com. De Artefatos De Borrahca Ltda.
Watts and Souza Pinto commenced manufacturing of a limited range of resilient solid tyres in late 2001, and have expanded the facilities product range over the last four years. The initial strategy in setting up the facility was to service the rapidly growing Brazilian market, as well as taking advantage of the opportunities presented by the Mercosur markets. The Brazilian Watts factory and central warehouse is based in Lorena, on the main Rodovia Presidente Dutra highway between Sao Paolo and Rio de Janeiro, and has grown from a 1,300 square metre facility to its new current size of 4,400 square metres.
The International Rubber Study Group has announced that the Government of India will join the Group on 1 April 2006. India’s total rubber consumption has been increasing steadily since 1960 at a rate of 6.8 per cent/year to reach 968,000 tonnes in 2004. This makes India the fourth largest rubber consuming country, behind China, the USA and Japan.
Michelin, the world’s leading tyre manufacturer, has filed a lawsuit to the Beijing Chaoyang Court accusing Aeolus Tyre Co., Ltd and its agent Best Choice International Trade Co, Ltd of infringement, new sources have reported.
Delphi Product & Service Solutions has established a joint venture with Roulunds Braking Systems SAS, a leading European supplier of OE and aftermarket automotive friction components. The new company, called Alliance Friction Technologies, has already developed a purpose-built manufacturing facility near New Delhi (India), dedicated to supplying Delphi with OE equivalent quality brake pads for sale throughout Europe and to other countries supplied by Delphi’s European operations.
Sales of cars in China during January were better than expected, according to figures from Deutsche Bank. At 307,000 units, this was a 70 per cent increase year on year, due partly to the pull forward effect of the Chinese New Year. Analysts forecast volume growth during this year of 53 per cent for passenger cars, with a string of new models in the pipeline, including the Honda Civic, Peugeot 206, Citroen C3, Nissan Silphy and MPV.
Speciality tyre manufacturer, GPX International Tire Corporation, has become the first tyre manufacturer to open a mixing warehouse facility in China’s newest free trade zone. The new 140,000 square foot facility (13,000 square metres) is designed to support international trade and is strategically located in North East China’s Tanggu Port. Tanggu is the largest man-made port in China and provides GPX with close access to global shipping lanes. The mixing warehouse is critical in further developing leading-edge solutions for GPX customers around the world. GPX says it expects to start offering tyres through its new mixing facility in the first quarter of 2006.
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