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 full report on the circumstances and arguments behind the decision to approve antidumping and countervailing duties against passenger car and light commercial vehicles tyres from China has been published by the US International Trade Commission. The report, titled ‘Certain Passenger Vehicle and Light Truck Tires from China’, can be read here.
While ChemChina’s deal with Camfin to take over Pirelli officially got under way this month, not everyone connected to the economy in the People’s Republic was looking so positive. The stock market has been in freefall and industrial production looks to have taken a big hit. The Chinese state’s answer? To devalue the national currency (the yuan renminbi or RMB) three times in a week and make already cheap Chinese exports even cheaper.
Davanti has released two new tyres, the DX420, designed specifically for Hackney Carriages and the DX440 a rugged van tyre. The new tyres will be officially launched at China International Tyre Expo in Shanghai from 9 – 11 September where Davanti is at stand 5010, West Hall.
CNRC (ChemChina), Camfin and its shareholders have announced that all the necessary antitrust and regulatory approvals for ChemChina’s purchase of the majority of Pirelli (as announced on 22 March 2015) have been obtained. Therefore the aforementioned parties have agreed to complete the transaction on 11 August 2015. As a result, the pre-announced mandatory tender offer for the remaining shares (at 15 euros each) will be triggered.
Between 2 and 4 June Qingdao Nama Industrial Co. Ltd. presented new ranges of passenger car and truck and bus radials at Automechanika Dubai 2015.
The US Department of Commerce will issue antidumping and countervailing duty orders on certain passenger car and light truck tyres imported from China after a three-to-three vote by the United States International Trade Commission (ITC) determined the domestic tyre industry is “materially injured” by imports of “subsidised” Chinese tyres that are sold in the USA at “less than fair value.”
Cooper Tire & Rubber has shared news of its work with tyre dealers in China to elevate Cooper brand awareness amongst consumers, including the many first-time car buyers in this enormous market. The tyre maker says that over the past eight months it has collaborated with dealers to introduce a new retail concept. So far this has led to the opening of four Cooper ‘Superfeel Centers’ in China. The first of these outlets opened in Shanghai in November 2014, and this was followed by centres in Shandong (January 2015), Beijing (March 2015) and Chengdu (July 2015). These four sites will be joined by two more Superfeel Centers, in Baoding and Inner Mongolia, by the end of this year.
Automechanika Shanghai sees Asia’s largest trade fair for automotive parts, accessories, equipment and services move to a new location – the National Exhibition and Convention Center, Puxi, Shanghai. The event, which will be held 2 – 5 December 2015 hopes to capitalise on the expanded venue with 280,000 square metres of exhibition space, up 27 per cent from 2014. Indeed the Parts & Components sector will expand exhibition space to 146,000 sqm alone.
Reports suggest that struggling Shandong, China-based tyre manufacturing Deruibao tyre has now officially declared bankruptcy. As Tyres & Accessories reported in February, the company called on local Grungrao County officials for support who tried to restructure the business. Qingdao Doublestar and Hengfeng tyre were also linked to the firm as possible buyers.
The association representing the interests of four tyre majors in South Africa would like to see anti-dumping duties imposed on cheap tyres entering the country. The South African Tyre Manufacturers Conference (SATMC), which acts as the ‘generic face’ of Bridgestone, Continental, Goodyear and Sumitomo in their dealings with government, the motor industry and the public, intends to petition the International Trade Administration Commission of South Africa (ITAC) for protection against these imports.
With more low-cost Asian-produced imports entering key European markets than ever, many within the retreading and wider truck tyre industry are anxious to address what they see as a growing concern. For them there are several problems with the continuing influx of Chinese tyres, but two points are particularly key: the increasing cost difference and increased quality disparities seen in the market. Both undermine the retread market and even its long-term future. As far as retreaders are concerned, the problem is that good quality and environmentally sound retreads are being priced out of the market by cheap first-life truck tyres bought as “disposable” items at virtually cost-price levels. All this raises questions that impact the whole market: How bad is the situation now? How has it got to this stage? What is the impact on new truck tyres and retreads alike? Tyres & Accessories recently met with representatives of the Retread Manufacturers Association (RMA) as well as leading retread and new tyre manufacturers in order to find out more.
Already possessing a convincing claim to being China’s biggest tyre show, the 13th CITExpo on 7-9 September 2015 will be the last at the Shanghai Everbright Convention & Exhibition Centre. Having expanded to include an extra hall in 2014, exhibition organiser, Reliable International Exhibition Services will, in 2016, transfer the show to the modern surroundings of the Shanghai World Expo Exhibition and Convention Center (SWEECC), built in the centre of the 2010 Shanghai World Expo site. The move highlights the strong growth of CITExpo, whose move to a modern, world-class facility caps many years of apparent exhibitor and visitor growth.
On 29 June ZC Rubber Group hosted the grand opening ceremony of ZC Rubber Thailand, the leading Chinese manufacturers’ first overseas manufacturing subsidiary, located in Rayong, Thailand. At the same time the company’s top executives took the opportunity to announce the foundation of new TBR production line in order to meet ”the quickly increasing demand on medium and heavy truck tyres from Southeast Asia and South Asia. ZC Rubber will keep on the globalization strategy for a better future.”
Qingdao Nama Industrial Co., Ltd., a Chinese tyre supplier whose brand portfolio (led by NAMA), has established distribution networks in the Middle East and Africa, gave its car and truck tyre ranges a European debut at May’s Autopromotec.
The Pakistani tyre market is subject to widespread under-invoicing, which continues to lead to smuggling and illegal cross border trade. It’s nothing new, but local news sources are reporting that it is now happening at a “colossal” scale due to the Afghanistan-Pakistan Transit Trade Agreement (APTTA), citing data produced by the Pakistan Business Council (PBC).
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