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 addition to announcing its final decision on measures related to Case AD640, its anti-dumping proceeding on new and retreaded truck and bus tyres manufactured in China, the European Commission has commented briefly on Case AS641, the anti-subsidy investigation focusing on these products.
The European Union has made its conclusive statement on the introduction of anti-dumping tariffs on truck and bus tyres and retreads manufactured in China. As previously announced, the EU will impose fixed rate anti-dumping duties on the products, with the final regulation 2018/1579 implemented from 23 October. This ends speculation that percentage rates could be applied. In fact, the EU has revised tariff levels up, almost across the board.
Yokohama Advan Sport V105 tyres made at Yokohama Rubber’s factory in Suzhou, China will be supplied as original equipment for BMW X3 models manufactured in China. The Suzhou plant began shipping size 245/50R19 105W OE tyres bearing the BMW ‘star’ mark on the sidewall in May.
While presenting its nine-month 2018 results, Michelin has predicted a significant slowdown in passenger and truck tyre market conditions in the second half of the year. However, the well-known tyre manufacturer also predicted “sustained growth” in the speciality sector, which consists of OTR, two-wheel, aircraft and agricultural tyres.
The vast majority of Sailun Jinyu Group shareholders have approved the adoption of a new company name and changes to the company’s articles of association. Votes held during an extraordinary meeting of shareholders on 12 October resulted in a 99.1 per cent turnout in favour of both measures. The tyre maker will thus adopt the name Sailun Group Co., Ltd.
On 1 October Cabot Corporation acquired NSCC Carbon (Jiangsu) Co., Ltd. from Nippon Steel Carbon Co., Ltd., a subsidiary of Nippon Steel Chemical & Material Co., Ltd. The carbon black manufacturing facility in Pizhou, Jiangsu Province, China, was originally commissioned in 2015. The purchase price and certain equipment and technology upgrades are expected to result in spending of approximately $50 million over the next two years.
The striking of a ceremonial gong at precisely 9:30am this morning marked the listing of Prinx Chengshan (Cayman) Holding Limited on the Hong Kong Stock Exchange. Today’s listing follows nearly a year of preparations and represents an important step in the company’s growth and internationalisation strategy. Trading under stock code 1809, Prinx Chengshan is the first China-based tyre manufacturer to join the HKEX.
Jiangsu General Science Technology Co. Ltd. is set to invest around US$300 million in the construction of a tyre manufacturing facility in Thailand. The news follows earlier reports published in the Spring that Jiangsu General was considering Cambodia for the investment.
In 2016, Cooper Tire & Rubber invested some US$93 million to acquire a 65 per cent shareholding in Qingdao Ge Rui Da Rubber Co., Ltd (GRT). The remaining 35 per cent share in the China-based truck and bus radial manufacturing operation was retained by Qingdao Yiyuan Investment Co., Ltd. (QYI), however QYI is now selling its stake in the business. Sailun Jinyu Group Co., Ltd. has signed a share transfer agreement with QYI to acquire its 35 per cent interest in GRT for RMB 220 million (£24.4 million, US$32.0 million), subject to government approval.
The Trump administration upped the ante once again in the ongoing trade war between the USA and China on 18 September with the introduction of tariffs on all US$200 billion of imports including basically all categories of tyres, retreads and inner tubes. At President Trump’s direction the additional tariffs will initially be set at 10 per cent and will take effect on 24 September 2018. However, as of 1 January 2019, the level of additional tariffs will increase to 25 per cent.
With hybrid vehicles set to capture a significantly greater market share during the transition to electrified transportation, Ricardo will share its vision as to how high efficiency, low-cost Dedicated Hybrid Transmissions (DHTs) can be created using the company’s highly advanced Select-R transmission design toolchain.
On 1 September 2018, Chinese vehicle manufacturer FAW Group Corporation signed a product technical cooperation framework agreement with Shandong Linglong Tire. The two parties intend to collaborate on the development of tyres for new models produced by FAW.
Visiting CITExpo in 2018 had the potential to be a gloomy affair. A trade show that has specifically targeted medium-sized tyre Chinese manufacturers as a gateway for raising global interest, the trading environment in major export markets in Europe and North America have not been the most hospitable, with tariffs or anti-dumping duties affecting various product segments. In the UK, we heard from a major Chinese truck tyre importer that business had effectively been put on hold with the announcement that the EU was imposing tariffs in May. Pressure had also been mounting domestically, as the Chinese government moved to bring a halt to production at factories it considered to be too polluting, which led to upstream supply chain problems, as raw materials suppliers to the tyre industry were among those affected.
The Section 301 Committee of the Office of the US Trade Representative (USTR) is holding hearings at the US International Trade Commission as part of a consultation process ahead of proposed import duties on certain Chinese produced tyres.
On 10 August 2018 China’s Ministry of Commerce announced plans to implement anti-dumping duties ranging from 23.1 per cent to 75.5 per cent on synthetic halogenated butyl rubber from the United States, the European Union and Singapore starting 20 August 2018.
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