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.
“I just don’t get China!”, “As a foreigner, how do you get anything done in that country?”, “How can you trust the Chinese?” Having worked with China for nearly two decades now, I get many of these questions from friends and colleagues. They realise the need to do business with China and are having some trouble navigating the choppy waters. So here are some of my thoughts – in the hope I don’t offend any of my Chinese friends!
On August 1, 2017 China National Chemical Equipment (CNCE; also known as ChemChian) and Fraunhofer Institute for Manufacturing Engineering and Automation (Fraunhofer) under Fraunhofer-Gesellschaft signed a strategic cooperation memorandum of understanding (MOU) in Munich. According to the MOU, the two sides will cooperate with each other in the fields of new chemical materials, intelligent manufacturing, automation and information technology.
With a headline like that, you could be forgiven for thinking that this month’s column refers to the ongoing geopolitical sabre rattling taking place between China’s North Korean neighbours and the USA. However, as important as the hint of nuclear escalation is, here we focus on how the overheating Chinese tyre market is as close as it has ever been to boiling over. Two key subjects have raised the temperature in the People’s Republic during the last month or so: The European Commission’s (EC) decision to initiate an anti-dumping investigation against Chinese-produced truck and bus tyres; and the even more imminent effects of local environmental emissions investigations within China itself, which have led to the suspension and even closure of numerous businesses in the country (see below).
Stamford Tyres (Hong Kong) Ltd., a subsidiary of Singapore-based Stamford Tyres Corporation Limited, has set up a wholly-owned subsidiary in China. The new company, Stamford Tyres Dongguan Co Ltd., was set up with a registered capital of US$1 million and will principally engage in the wholesale and distribution of tyres, wheels and automotive accessories.
The 15th edition of the China International Tire Expo has opened at the Shanghai World Expo Exhibition & Convention Center. Exhibitors at the show comprise a mix of growing tyre manufacturers from the Chinese market, international trading companies, wheel suppliers and others, while. In addition to Chinese industry players, Europe is represented by UK distributor Oak Tyres’ Davanti tyre brand, FM Tyres from the Netherlands, and Italian distributor Franco Gomme, while Singapore’s Stamford Tyres and Taiwan’s Nankang add to the international exhibitor base. The internationalism of the show is also reflected in the visitors arriving today from five continents.
Fulda, Germany-based UTH GmbH is set to exhibit its extended range of products, covering both roll-ex fine-mesh straining systems and roll-ex gear pump technology at RubberTech China 2017. RubberTech China is set to run from 20 to 22 September New International Exhibition Centre in Shanghai.
The European Commission has issued notice that it will initiate an anti-dumping proceeding focusing on imports of truck and bus tyres originating in the People’s Republic of China. The Commission is taking this course of action as a result of a complaint received on 30 June by the “coalition against unfair tyres imports,” a group representing the interests of manufacturers who account for more than 45 per cent of all new and retreaded truck and bus tyre production in the European Union.
Days after India’s Directorate General of Anti-Dumping published its final findings into truck and bus tyres imported from China and recommended the introduction of anti-dumping duties for certain products, the chairman and managing director of the country’s largest domestic producer of truck and bus radials supported the measure with comments of his own. During his speech at JK Tyre & Industries Ltd’s annual general meeting on 4 August, Dr Raghupati Singhania declared it is “high time” India’s government undertook such a step.
Days after India’s Directorate General of Anti-Dumping published its final findings into truck and bus tyres imported from China and recommended the introduction of anti-dumping duties for certain products, the chairman and managing director of the country’s largest domestic producer of truck and bus radials supported the measure with comments of his own. During his speech at JK Tyre & Industries Ltd’s annual general meeting on 4 August, Dr Raghupati Singhania declared it is “high time” India’s government undertook such a step.
Safe-Run has announced that it has made “significant progress” in the patent invalidation and patent litigation process against VMI Holland B.V. Safe-Run explained that the Patent Reexamination Board of State Intellectual Property Office declared that the VMI’s invention patent “Assembly for and Method of Making a Tyre Component” is “entirely invalid”. According to the company, the patent declared invalid is deemed to have “not existed from the very beginning”. In addition, the court has dismissed VMI’s litigation action against Safe-Run for this patent infringement. For its part, VMI stated that it made progress in the same series of cases and that it would appeal a number of adverse verdicts.
Qingdao Sentury Tire reports that its aviation tyres have gained MDA (Modification Design Approval) certification by the Civil Aviation Administration of China (CAAC) following take-off and landing tests conducted using a Boeing 737 at Yantai Laishan Airport in Shandong Province late last year. This MDA certification, the first given to a privately-owned tyre manufacturer in China, approves Sentury aviation tyres for sale and use within the country.
The body within India’s Department of Commerce established to investigate unfair trade practices has recommended the introduction of anti-dumping duties on certain tyres imported from China. In the recently published findings of its report into truck and bus tyres with rim diameters above 16-inches that originate in or are exported from the People’s Republic, the Directorate General of Anti-Dumping (DGAD) states it is “of the view that imposition of definitive anti-dumping duty is necessary to offset dumping and injury.”
China’s Patent Re-examination Board has upheld important patents relating to tyre building technology developed by VMI. Commenting on the board’s decision, VMI Group chief executive officer Harm Voortman said “this decision further strengthens our position in the legal dispute with Safe-Run and reaffirms our confidence in the Chinese legal system.”
Triangle Tyre held its “2017 Global Summit” in the coastal city of Rongcheng – China, not far from the firm’s headquarters in Weihai between 27 and 29 June. The Global Summit’s aim was to foster and strengthen relationships with worldwide business partners, share the next stages of the companies’ evolution and in particular the targeted acceleration of the company’s presence in the global market.
ZC Rubber has installed a smart factory project based on the ET industrial brain artificial-intelligence (AI) service system for manufacturing launched by Alibaba Cloud. The goal is to “greatly improve the production in the factories”, according to the company. The cooperation between ZC Rubber and Alibaba Cloud reportedly started at the end of 2016.
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