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.
Aftermarket parts supplier Motaquip has warned that the flood of ‘bargain batteries’ into the EU from Asian manufacturers pose a direct threat to a vehicle’s starting capability and could invalidate manufacturer vehicle warranties.
Last year 6 million vehicles were sold on the Chinese market, making China the world’s second largest auto market. According to a Reuters report, China produced more vehicles than third-place Japan, but is still behind the US which remains the world’s largest market.
Reports in the Shanghai Daily say that Bridgestone has opened a 1.6 million Yuan (US$ 198,270) “Car Wing” store in Shanghai. The store covers 789 square metres and is Bridgestone’s largest in China. It is also the first built by the tyre manufacturer, as its other stores were built by dealers.
The China Tire Retreading and Utilization Association has changed its name to the China Tire Retreading, Repairing, and Recycling Association (CTRA), in response to a challenge from central government to move towards a resources-saving society and recycling economy.
The Indian tyre lobby has convinced the government to initiate anti-dumping proceedings against imports from China and Thailand. Tyre makers allege that over 35,000 bus and truck tyres are being imported from China and Thailand every month at huge discounts compared to global and domestic prices, India’s Economic Times reported.
Cooper Tire & Rubber Company has announced that all necessary government approvals have been received for its transaction to obtain 51 per cent ownership in China’s third-largest Chinese-owned tyre manufacturer.
(Akron/Tire Review) Michelin North America (MNA) has filed a copyright infringement suit against Dynamic Tire Cor. and its president, Robert Sherkin, in the US District Court for the Northern District of New York.
At the same time, MNA’s Canadian unit filed suit against Dynamic, which is based in Toronto, and Sherkin alleging infringement of two Canadian Industrial Designs by Dynamic’s distribution of Triangle TR696 and Triangle TR689 tyres. Michelin also seeks an injunction to halt distribution of these tires along with an award of damages and costs.
(Akron/Tire Review) Bridgestone Corp plans to spend some $100 million to build a synthetic rubber factory in China, which the company said is necessary to meet growing demand worldwide.
Sumitomo Rubber industries has announced its intention to quadruple its tyre production in China within three years, in order to meet the sharply rising demand in that country.
SRI intends to invest between 10 billion and 15 billion Yen ($85m to $128m) over this period. Production at the SRI plant in Jiangsu province, near Shanghai, will rise from the current 1,500 tonnes a month to 6,000 tonnes.
SRI also said that it plans to build a new factory in China to supply tyres to Japanese car manufacturers with factories in China.
Yokohama has announced that it has entered into two new joint venture operations in China. Shandong Yokohama Rubber Industrial Products Co, Ltd, will produce and sell conveyor belts, and Yokohama Tire Sales (Shanghai) Co, Ltd, will sell tyres, both are set to be established in early 2006.
(India/Rubber Asia) The off-the-road (OTR) tyre makers in India are refusing to take fresh orders “at least for the next few years” in the wake of an avalanche of orders hitting them. The acute shortage of tyres, especially meant for heavy-duty dumpers, raises a serious threat to one of India’s core sectors, the mining industry, especially coal.
Michael R Wessel, an attorney with many years experience as a policy and international trade advisor in Washington, DC, has been elected to Goodyear Tire & Rubber Company’s board of directors.
Singapore’s Stamford Tyres has published first half 2006 results which show the company is ahead of schedule as far as net profits are concerned. In the six month period ended 31 October the company recorded a 114.3 per cent rise in net profits to S$6.5 million.
Natural rubber prices are predicted to keep rising in 2006 for the second straight year, as demand from tyre manufacturers continues to outstrip supply, Rubber World has reported. “Bullishness may persist in the rubber market as demand for the commodity remains quite strong,” Michael Coleman, managing director of Singapore-based Aisling Analytics told Dow Jones newswires.
Michelin is planning to expand a Lexington County, South Carolina plant that makes large earthmover tyres, the associated has press reported. With reference to the current earthmover tyre shortage, Michelin said the company is investing in a South Carolina facility “west of Columbia.” He said capacity will be added there but did not discuss the size of an expansion nor a definitive timetable.
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