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.
Chinese bus fleet operator Guangzhou Jumbo Bus Co Ltd. intends to convert its entire fleet of LNG-powered buses to electric propulsion over the coming three years, and as it does so will exclusively shod its fleet with Hankook tyres. Jumbo Bus, which operates six city bus companies and a total of 4,500 buses, signed a memorandum of understanding with Hankook Tire this month covering the supply of tyres specifically developed for electric buses.
Through the installation of six new testing machines at its Tire and Wheel testing lab in Suzhou, China, rubber and plastics testing and consulting service provider Smithers Rapra has increased the facility’s ability to server tyre and wheel customers. The new equipment is said to boost capacity at the lab by 35 per cent and broadens its testing capabilities to include cleated tyre and wheel endurance testing, wheel impact, salt spray and tyre air permeation tests.
The integration of Prometeon Tyre Group (the former Pirelli Industrial business) and Aeolus Tyre Co. Ltd has stalled after Aeolus’ pending acquisition of a 90 per cent stake in Prometeon failed to gain overseas acquisition approval from Chinese authorities before the 31 December 2017 deadline.
Qingdao Doublestar broke ground on an industry 4.0 scrap rubber recycling plant in December 2017. When fully operational, the $92.7 million plant will process 200,000 tons of scrap rubber annually.
Linglong Tire is working on a research project to develop radial tyres for large aircraft used in China’s civil aviation industry.
As Linglong Tire notes, China imports more than 80 per cent of the natural rubber its manufacturers use. The company views rubber sourced from dandelions as a potential strategic raw material in the coming years, and in order to promote the industrialisation of dandelion rubber, it plans to invest RMB 30 million (£3.4 million) to set up a new company. The tentative name for this firm is Linglong Dandelion Science and Technology Development Company.
The establishment of Atlas as Shandong Linglong Tire’s flagship tyre brand in China has been further reinforced by the opening of the first Atlas-branded retail outlet within the country. The centre in Guangzhou aims to meet the “highest industry standards” in regards to design, equipment, products, service, scale and professionality, comments the tyre maker.
Following on from its release of a publication for Shanghai last year, Michelin has announced it will extend Michelin Guide coverage to a further city in China. A Michelin guide for Guangzhou will be available in 2018, and Michelin says it will allow everyone – locals, tourists, and business travellers alike – to benefit from the inspectors’ recommendations whatever their desires, tastes and budgets may be. The guide for Guangzhou will be the world’s 31st Michelin guide selection and the seventh in Asia, excluding Japan.
The 13th edition of Automechanika Shanghai, which took place from 29 November to 2 December 2017, has posted its most successful results to date. Visitors totalled 130, 928 (2016: 120,671), a 9 per cent increase. Exhibitors were up 5 per cent to 6,051 (2016: 5,756).
Lighting and electronics expert HELLA and Chinese BAIC Group company Beijing HAINACHUAN Automotive Parts Co. Ltd. (BHAP) have announced, through a joint statement, that they intend to expand their existing collaboration, which has focused on the development and production of lighting systems for the Chinese market, to cover the electronics and aftermarket business.
Following the initial announcement in April 2017 as well as details given to Tyres & Accessories during an interview in September, Guizhou Advance Tyre has announced further details relating to the expansion of its Vietnam factory plans.
On 20 November 2017 the United States District Court for the Central District of California held Chinese tyre factories Doublestar Dong Feng Tyre Co., Ltd. (DDF) and Qingdao Doublestar Tire Industrial Co., Ltd. (QDT) in contempt for violating a 2014 Final Judgment prohibiting the manufacture and sale of tyres using a confusingly similar tread to that of Toyo’s best-selling Open Country M/T. DDF and QDT were held in contempt for selling the AMP M/T tyre, which was deemed to be too similar.
Talk to westerners and they see China as a relative newcomer to the global tyre industry table. Talk to Chinese people and they may just point out that China has been the world’s leading tyre producing nation since 2005. Indeed, full-year 2016 figures show that 600 million tyres were “made in China”, many of which were passenger car and light truck products. However, China now wants to move on from its reputation as being the biggest tyre producing nation and progress towards a renewed emphasis on quality and technology. Tyres & Accessories spoke with Mary Xu, the China Rubber Industry Association (CRIA) deputy secretary general, in order to find out more about how the Chinese tyre industry wants to move from biggest to best.
Goodyear Tire & Rubber’s presence in China’s replacement tyre market has gained a significant boost by the forging of a strategic partnership with e-commerce giant JD.com. Signed 1 December, the agreement with China’s largest e-commerce platform (by revenue) will place selected Goodyear products on a Goodyear-branded JD.com channel and also see the company’s tyre and automotive services centres, which currently operate in ten cities in China, collaborate with the JD.com automotive platform. Goodyear states that this partnership will result in “seamless omni-channel experiences.”
In August Chinese tyre manufacturer Jiangsu General Science Technology Co. Ltd established a base in the USA. At the same businesses unfamiliar with the firm took an interest. With this in mind, during a recent visit to China, Tyres & Accessories met with Jiangsu General general manager Wang Xiao Jun in order to find out more about the company.
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