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.
Continental has opened its first training centre in the APAC region in Hefei, Anhui province in China. The facility is located in Anhui Province, in the Hefei Hi-tech Industry Development Zone, beside the company’s tyre plant and R&D test centre.
Leading Italian brake manufacturer, Brembo has reported revenues of 1,146.8 million euros, up 10 per cent compared with the first half of 2015 (+12.2 per cent on a like-for-like exchange rate basis). During the same period, pre-tax profits (EBIT) grew +42.9 per cent to 173.3 million euros.
It seems reports of the demise of the Department for Transport (DfT) were over stated. On 16 July – coincidently the day of the annual TyreSafe briefing – the new post-Brexit UK Prime Minister, Theresa May, embarked on a cabinet reshuffle. As it turned out this was no simple parlour shuffle, but a full-on single-hand pharaoh shuffle. As heads rolled and others moved in, while still others moved around, unnamed sources told The Telegraph that the Department for Transport (DfT) was being shut down. At the time, it looked like the Department of Business, Innovation and Skills and the Department for Energy and Climate Change were also being axed to make way for more streamlined departments for Industry and Infrastructure.
Yinbao Tyre Group, a company that has been manufacturing tyres in China for 20 years now, is aiming to grow sales in mainland Europe. The decision comes around a year after the US renewed its policy of levying import tariffs against Chinese renewed products and thus made it impossible for some Chinese tyre makers to continue to do business in the US.
Automechanika Shanghai is said to be experiencing “sweeping growth” ahead of the 2016 show, which will be held at the National Exhibition and Convention Center, Puxi, Shanghai from 30 November – 3 December. The organisers are highlighting the show’s Connectivity and Electronics & Systems zones. However, in addition to the gains seen by the Electronics & Systems sector, for the first time the show’s West Hall will be housing the Wheel Rim/Tyre sectors.
When the Shandong Linglong Tire Co., Ltd. IPO went live on 6 July and the tyre maker’s shares became available on the Shanghai Stock Exchange, their value increased by 44 per cent on the first day. The company reports that by 19 July the total market capitalisation in Linglong Tire had reached RMB 50.508 billion (£5.7 billion), giving the company the top ranking from 33 ‘A’ share (mainland China-based) listed companies in Yantai, the number three spot amongst ‘A’ listed companies in Shandong and 128th position in China as a whole.
Goodyear Tire & Rubber has released a new mid-range commercial vehicle tyre brand in China. The Remington Tire brand enters the market this month, and with it Goodyear is aiming to cater to long-haul fleets looking for cost-effective quality. The launch portfolio consists of two steer tyres and a drive tyre.
Two tyres from the Yokohama Geolandar range have been selected as original equipment fitments for Mazda SUVs sold in certain global markets. The Geolandar H/T G056 will be available as an original equipment tyre on the CX-9 crossover when it goes on sale in North America this spring, and buyers will be able to receive the Geolandar in size P255/60R18 107H or 255/60R18 108H. In China, Yokohama Rubber will ship its Geolandar G91 to Mazda for fitment on the new CX-4. The crossover SUV will receive the Yokohama tyre in size 225/55R19 99V.
The official opening of Continental’s newest test centre took place last Friday, and the tyre maker and automotive supplier says this facility, which is located in Yancheng, Jiangsu province, will “provide Continental with a more solid foundation for technical support and product development in China.”
This year the China International Tire Expo returns to Shanghai for the 14th time, and 2016 is a significant year for the show as it represents the start of a new era.Instead of taking place at the Shanghai Everbright Convention & Exhibition Centre, where it has been held for the past decade, on 26 September CITExpo – arguably China’s most significant tyre industry fair – will open its doors at the Shanghai World Expo Exhibition and Convention Center (SWEECC). The change of venue offers a substantial increase in available exhibitor floorspace, and visitors will benefit from modern, attractive facilities and easier transport connections.
The Chinese Intellectual Property Court has upheld VMI’s claims against Shuangjun Plastic and Rubber Machinery Ltd. and awarded the full compensation requested by VMI to be paid by Shuangjun. The Chinese Patent Management Bureau ruled that Shuangjun was guilty of patent infringement against VMI’s patent for its tyre building drum back in 2015.
In recent months we have heard much about the decline of retread demand and production at the same time that Chinese truck tyre prices have plumbed to new depths. Of course this paints a very negative picture for the retreading business in the UK – where low-costs imports have historically been more popular than the average European state – and also across the European tyre markets. The premium new tyre makers have suggested they will weather the storm by pointing out their uniquely strong position with regard to large fleet customers. Because they also produce their own retreads, these firms pointed out that their businesses will remain relatively sheltered by the low quality, oversupply problems facing other independent retreaders. However, such a reading of recent history relies on two premises: 1) that the market remains in undeniable decline and 2) that premium manufacturers with their own retreading options are best positioned to get over this particular bump in the road.
Chinese firm CIMC Vehicles has acquired Northern Irish firm Retlan Manufacturing Limited, which includes well-known trailer manufacturer SDC Trailers
Local news sources quote David Li, general manager and director of the board of CIMC Vehicles, as saying: “We are delighted to have acquired the Retlan Group. The acquisition will mark an exciting new chapter in its history. We look forward to working with the existing management to continue its fine tradition of high quality UK-based manufacturing and to the opportunity for further investment to help grow the business.”
On 21 June Shandong Linglong Tyre Co Ltd announced it would issue 200 million shares of common stock at 12.98 yuan per share as part of its initial public offering (IPO) on the Shanghai Stock Exchange. At the time, the company said it expected to raise roughly 2.60 billion yuan, which various news sources suggest is intended to fund investment in new tyre production lines.
As senior management from Aeolus Tyre disclosed during a Reifen 2016 press conference, the Chinese tyre maker will soon be part of the world’s fourth-largest industrial tyre manufacturing company. This new tyre firm, which has yet to be named, will exist under the umbrella of state-owned concern ChemChina. In addition to Aeolus Tyre, the company will be comprised of Pirelli, which ChemChina acquired last year, and the Italian tyre maker’s new sister companies, Qingdao Yellow Sea Rubber and Double Happiness.
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.
