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.
On 10 and 11 October, a team from Volkswagen Group evaluated Shandong Linglong Tire co. Ltd.’s suitability as an original equipment supplier. The Chinese tyre maker reports that it has passed this audit, and in doing so comes one step closer to having its tyres fitted on Volkswagen vehicles manufactured in China. At present, no tyres produced by domestic Chinese tyre makers come with Volkswagen cars as original equipment.
ZC Rubber has hosted its 2016 dealer meeting in Brazil. The Hangzhou based manufacturer outlined its new strategic plan focusing on business development. According to Ge Guorong, vice president of ZC Rubber, the company has continued steady development with output reaching more than 7 million truck and bus tyres and more than 14 million car and light truck tyres in the first half of 2016, accounting for 17.57 per cent and 13.21 per cent respectively within the Chinese tyre industry.
Birmingham-based Dunlop Aircraft Tyres Ltd (DATL) has confirmed that the company is looking for new investors. And this means that “initial discussions” with “a number of interested parties” are already underway.
According to the company’s executive chairman Ian Edmondson, the goal is to find a suitable partner to help the company continue to move forward at its current rate of positive growth: “Our shareholders are now seeking to find a new investor who is in a position to help the business maintain the outstanding growth record that it has delivered in recent years.”
While the vast majority of the UK’s tyre production and retreading capacity refers to trucks and a relatively small amount of car tyre retreading still takes place as well as some specialist earthmover retreading, one of the nation’s largest retreaders makes aircraft tyres. Dunlop Aircraft Tyre Ltd or DATL as it is known has demonstrated strong growth in recent years and is majority-owned by private equity. Put the two together and it begs the question – is Dunlop Aircraft Tyre Ltd (DATL) up for sale?
A new Michelin subsidiary has been set up to facilitate the expansion of the company’s activities within China’s aviation segment. Frank Moreau, president of Michelin Aircraft Tyre, describes the establishment of Michelin (Shanghai) Aircraft Tire Trading Co. Ltd (MSAT) as “an important step” for the Michelin’s aviation tyre business in China.
Triangle Tire’s initial public offering (IPO) got underway as planned on 9 September with the company becoming a public traded entity on the Shanghai Stock Exchange. The listing became active 10 September 2016 following approval by the China Securities Regulatory Commission (CSRC) on 19 August 2016.
Linglong Tire reports that a team from the tyre maker was amongst the more than 40 experts that met last month to discuss the utilisation of dandelions as a source of rubber. The Council of Dandelion Rubber Industrial Technology Innovation Strategic Alliance was held in Harbin, China between 15 and 17 August, and was attended by representatives from Linglong, the China Petroleum and Chemical Industry Association, Linglong Tire and Beijing University of Chemical Technology, along with attendees from Russia and the US.
Mesnac reports that its subsidiary Beijing Jingyie Mechanical Equipment Co. Ltd. has introduced a new generation of fully-automated, two-stage passenger car tyre building machines. The new line was introduced during a celebration of Beijing Jingyie’s 20th anniversary on 27 August, and a delegation of senior officials from China’s rubber industry later witnessed the machines in action at Beijing Jingyie’s factory in Tianjin.
ZC Rubber’s new bike tyre factory in Anji, Zhejiang province, has commenced production. The Anji factory is associated with an investment of up to US$620 million and covers 860,000 square metres, focusing on the motorcycle tyres, e-bike tyres and inner tubes etc. Shen Jinrong, president of ZC Rubber, says that the factory‘s output value amounts to more than $1 billion.
Sentury Tire has selected a plot of land just outside LaGrange, Georgia as the location for its US$500 million US tyre factory, according to various local news sources. Reports in local US newspapers suggest that the decision was made on Thursday 1 September – at which point the choice was between the shortlist of the reportedly successful Georgia location and the Memphis Regional Megasite in Tennessee.
It’s tariff time again. The US government has imposed trade sanctions on US-produced OTR and industrial tyres before. They have done so with car tyres twice before. This time it’s truck tyres. But are they effective? Will they halt the rise of Chinese tyre manufacturers in general? And what does it mean for those doing business with truck tyres in the UK and Europe?
China’s Ministry of Finance and Commerce (MOFCOM) has hit back at the US Department of Commerce’s (DOC) decision to preliminarily introduce anti-dumping tariffs of around 20 per cent on Chinese truck tyres exported to the US. Indeed MOFCOM called the ruling, which is in addition to roughly 20 per cent countervailing duties, “an abuse of trade measures” on Friday 2 September. “Chinese tyre companies strongly oppose the US’s abuse of trade measures,” ministry of commerce spokesperson told reports during a briefing in Beijing.
Ricardo has signed an agreement with Anhui Quanchai Engine Co., Ltd. (“Quanchai”) – one of China’s largest diesel engine makers – to support the development of a new generation common rail diesel engine platform for commercial applications.
The US Department of Commerce (DOC) has imposed anti-dumping duties on Chinese-made truck and bus tyres imported into the USA.
In a preliminary determination, DOC anti-dumping duties of between 20.87 per cent to 22.57 per cent would be applied to products. These duties are in addition to countervailing duties recommend for the same products in June. As a result, total import tariffs of around 40 per cent are expected.
To meet the growing demand of Asian vehicle manufacturers for surrounding sensors, production of short-range radar sensors was launched in Calamba in the Philippines towards the end of 2015. Short-range radar sensors perform functions like Blind Spot Detection, Lane Change Assist and Rear Cross Traffic Assist. Driving forces include legal requirements, but the customers’ demands for more safety and comfort are also of key importance. Additionally, the production of the Multi Function Camera with Lidar will be launched in autumn this year. The plan is to produce over ten million short range radar sensors and one million camera systems in Calamba in the future.
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