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.
In light of the Covid-19 pandemic, and in order to protect the health of exhibitors, visitors and partners the 11th China (Guangrao) International Rubber Tire & Auto Accessory Exhibition (referred to as China GRTAE 2020), which was originally scheduled to be held at Guangrao International Expo Center, Shandong from 15-17 May has been rescheduled for 8-10 September 2020.
The last few months have been a challenging time for the tyre industry, but some of the first companies affected by the COVID-19 crisis are now reporting a return to normality. Zhongce Rubber Group (ZC Rubber) says its production at its plant in Hangzhou, China is now “in full swing” and its more than 9,200 employees back at work.
As the Chinese Government announces it will maintain subsidies for electric vehicles and plug-in hybrids, an indication that it will support the industry in recovery, David Leggett, automotive analyst at GlobalData, says “all eyes will be on China, being the first country hit by the crisis and the first to attempt to navigate a way out.”
Triangle Tyre is reporting that its four manufacturing plants in China are now back to operating at 90 per cent after the Chinese New Year and coronavirus shutdown.
Earlier this month, Zhongce Rubber Group Co., Ltd. (ZC Rubber) and Nanjing Lvjinren Rubber & Plastic High-tech Co., Ltd. (Nanjing Lvjinren Rubber) agreed to expand their capacity to produce recycled rubber from end of life tyres. The two companies are working on a project to boost capacity for recycled rubber at their pilot plant by 20,000 tonnes a year. ZC Rubber says this will be “fully operational” by September 2020 and will be the “leading” Industry 4.0 recycled rubber intelligent plant and pilot recycling project within China’s tyre industry.
The coronavirus-related restrictions we’re now experiencing in the UK and Europe were first seen in China. Many changes have taken place there since the COVID-19 outbreak began. Ge Guorong, vice president of Zhongce Rubber Group, sent a live video message to the retailers of its products in China, urging them to face the current difficulties together.
Goodyear is donating 2 million yuan (approximately $285,000) to support the fight against the COVID-19 in China where the company has a factory in Dalian. Working with the Dalian Chapter of the China Youth Development Fund (CYDF), the donation will be used to support frontline doctors and nurses stationed in Hubei province and Dalian city hospitals.
The Sailun Group is investing around RMB 1 billion (£110.6 million) to boost passenger car tyre capacity at its factory in Dongying, Shandong Province to 27 million tyres a year. This growth will take place as part of Sailun’s ‘HP Tire Expansion Project’ and is considered a “necessary guarantee for the group to impact the domestic mid/high-end OE market.”
Linglong Tire has been working hard to make good production shortfalls resulting from the coronavirus outbreak. The tyre maker reports that it shipped a record 280,000 tyres on 29 February, with nearly 300 employees working over the weekend at several of Linglong’s sites in China to ensure as many deliveries as possible.
Production at two of Pirelli’s three factories in China remains suspended in response to the spread of coronavirus (COVID-19). The tyre maker reports that its entire expatriate workforce has left the country along with their families, and only the car and motorcycle tyre in Yanzhou remains in operation, albeit at “a reduced pace”.
ZC Rubber reported today that production at its plant in Hangzhou, China resumed on 10 February following a pause taken in response to concerns regarding coronavirus (COVID-19). The manufacturer of the Westlake, Goodride, Arisun and Chaoyang tyre brands says production is now at 70 per cent capacity and is expected to return to normal levels soon. Triangle Tyre says its production also restarted on 10 February.
At the end of January 2020, Aeolus Tyres announced that the company successfully broke the 57-inch radial OTR tyre barrier. The Aeolus 46/90R57 AG01 earthmover tyre is now the “largest engineering radial tyre” that the company has ever produced.
In September 2019, Tyrepress.com broke the news that Yokohama is set to buy the ex-Pirelli industrial tyre business Prometeon. Back then, we reported that the deal was at an advanced stage and could be completed before the end of 2019. That clearly didn’t happen, but the deal is still live and the latest news is that it is nearing completion, but now also involves Aeolus Tyres.
Another tyre maker contributing to coronavirus relief efforts is Sumitomo Rubber Industries, Ltd. The Japanese tyre maker shared yesterday that it has donated RMB 2 million (£220,000) to non-governmental organisation the China Charity Federation. The donation supports the charitable organisation’s ongoing efforts to provide relief to those who are suffering from pneumonia and other ailments caused by the strain of coronavirus that continues to spread in China’s Hubei Province and beyond.
In order to support China’s anti-coronavirus epidemic actions, the Sailun Group has donated 10 million yuan to the Qingdao Red Cross for emergency assistance and to help mitigate the spread of the virus. Of the 10 million yuan donation, 4 million yuan came from the group’s management team and employees.
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