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.
The Arlanxeo synthetic rubber joint venture opened a new facility in China last month. Called the Rubber Technology Centre, the premises within the Changzhou National Hi-Tech District contains five labs and brings together its testing, mixing and production capabilities under one roof. With the new facility, Arlanxeo aims to position itself as an end-to-end technology platform leading the industry.
Qingdao, China-based Doublestar Tire recently announced that it has launched an aramid-reinforced puncture-sealing passenger car tyre under the Crossleader brand.
Qingdao Doublestar’s machinery division is a regular exhibitor at the RubberTech exhibition in Shanghai and the 2016 edition was no different for the factory equipment supplier. However, while the Reifen China exhibition was taking place in the neighbouring hall to RubberTech, Doublestar’s tyre manufacturing operation was hosting its “PCR Tire Industry 4.0 Intelligent Factory Completion & Safe Tire Global Strategy Conference” on 3 December in Qingdao, Shandong Province.
When Reifen China 2016 opened the doors of the Shanghai New International Exhibition Centre on the 1 December, it was immediately apparent that several significant changes are afoot in the Chinese tyre show sector. As the name suggests, Reifen China has always been organised by Messe Essen in partnership with China United Rubber Company (CURC) and co-located with CURC’s always-well-attended RubberTech. But next year that will change and the Reifen name has been licensed to Messe Frankfurt for use alongside its Automechanika Shanghai show. This move, which began as a ripple-effect emanating from the Reifen versus The Tire, Cologne competition that has been going on in Germany, has caused repercussions as far away as China. As a result CURC (the exhibition firm behind RubberTech and Messe Essen/Reifen China’s former partner) will also be launching a new tyre event in 2017.
Dongying Fangxing Rubber Co., Ltd. was founded in 2000 in Shandong Province’s Guangrao county. According to the company, Fangxing is one of the national top 100 companies in Shandong Province. The firm’s tyre factory covers an area of 600,000 square metres and has over 2000 employees, including 200 technical personnel. The firm describes itself as “a new enterprise specialising in tyre research and development, manufacture and sales -with 2 billion yuan of fixed assets”.
China’s Supreme People’s Court has ruled in favour of Bridgestone Corporation in a lawsuit that investigated the alleged infringement of its tyre tread design rights by Chinese manufacturer Triangle Tyre Co., Ltd.
Exmile Tyre may be the OTR tyre OE supplier you have never heard of. However, according to the company, Exmile provides OE services to “more than 20 global and domestic machinery and equipment manufacturers” such as: Jungheinrich, Doosan, Terex, Manitou and Tailift. In the replacement market, Exmile tyre reports that it enjoys a good reputation and growth in countries like Australia, USA, South East Asia, East Europe, Mexico, Colombia and Chile.
Cooper Tire & Rubber has completed its purchase of a 65 per cent interest in China-based Qingdao Ge Rui Da Rubber Co., Ltd. (GRT). GRT produces truck and bus radial tyres for global markets and will manufacture these to meet Cooper’s customer needs in North America, as well as in Asia and other markets. In the future, passenger car tyres may also be manufactured at the one-million-square-foot GRT facility, which has room for further expansion.
Reifen China 2016 open its doors at the Shanghai New International exhibition centre today – 1 December. The show organised by Messe Essen in partnership with CURC and co-located with RubberTech appears to have attracted similar numbers of exhibitors and visitors as it did 12 months ago, with much talk at the show related to the pressure overcapacity and US import tariffs have put on the manufacturing business.
One Chinese and two Thai partners have agreed to invest in a new joint venture passenger car and truck tyre factory in Thailand to supply both the domestic and export markets. The joint venture company hasn’t yet been named and will be established by June 2017. A total of 1 billion baht (£22.5 million) is to be invested in the new facility.
Kobe Steel, Ltd. has launched a new tyre testing machine, a tyre uniformity machine called the Librota-GS. According to the company, the new model has the world’s fastest cycle time of 18 seconds per tyre and the world’s highest repeated measurement accuracy.
Kobe Steel is regarded as a top manufacturer in the field of uniformity machines, with an estimated 30 per cent global market share. Kobe Steel plans to supply the new model to tyre makers in North America, Europe and regions throughout the world, aiming to capture further share of the market.
No review of 2016 would be complete without some reference to Brexit. Before the referendum result on 23 June, few people thought it would happen. Now the vote of 52 per cent in favour of leaving the European Union has long been counted, we can’t avoid talking about Brexit. Furthermore, with Donald Trump having won the US presidential election on 8 November in what he predicted would be “Brexit+++” the impact of the UK vote has taken on even greater significance.
Reifen China, which is described as “the trade fair for the Asian tyre market” is ready to run from 1 to 3 December 2016. The show is being held at the Shanghai New International Expo Centre in the Pudong area of the city.
Reifen China, which is organised by China United Rubber Corporation and Messe Essen will present wheels, tyres, repair material, valves, garage equipment and accessories amongst other products.
Following the implementation of US import tariffs in the last year (car tyres 2015; truck tyres 2016) and the widespread recognition of vast oversupply in the Chinese manufacturing base, there has been talk of consolidation of tyre industry in the People’s Republic for some time.
In the last few weeks however, it has become apparent that several Dongying, Shandong-based tyre manufacturers (especially those found in the Gungrao district) have experienced serious difficulties resulting in bankruptcies, buyouts and mergers. Now the consolidation trend appears to be gathering speed.
Deruibao Tire was the first to go pop more than a year ago, taking the private brand orders of some well-known wholesalers and importers with it, before its assets were taken on by fast-growing Qingdao Doublestar in what some characterised as a shotgun wedding, but was also a sign of things to come. Several local Chinese news sources named Dongying-based Hengyu Tire as the next to go (with the latter apparently declaring bankruptcy on 14 February), followed by the smaller and younger O’Green and Watson Tyre factories.
At the same time, various Chinese tyre distributors report that Yongtai Chemical’s tyre operations have shut down. Company representatives were not available for comment. However, we do know that Yongtai-owned Covpress (a Coventry-based panel metal supplier to well-known OEMs including Jaguar Land Rover) has entered administration. And furthermore, DMack – which had made itself popular selling World Rally Championship tyres made at Yongtai Chemical – switched production of its tarmac competition tyres to Cooper Tire Europe’s Avon Motorsport division in Melksham in mid-August (see “Yongtai Chemical-owned Covpress in administration” for further details).
Dunlop-shod Signatech Alpine became 2016 FIA World Endurance (WEC) LMP2 champions at 6 Hours of Shanghai, the penultimate round of the championship, having finished fourth. The race was won by G-Drive Racing, also on Dunlop rubber, in its second consecutive victory. Additionally the ByKolles CLM claimed its first win of 2016 in the LMP1 Privateer class.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.