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.
When the twelfth China International Tire Expo (CITExpo) kicks off on 10, 11 and 12 September 2014 the organiser (Reliable International Exhibition Services Co, Ltd.) hopes to be able to claim the title of “largest Far Eastern tyre trade show”. And in order to this the company is increasing available floor space by some 20 per cent.
Hankook has slowed its production in response to amassing a record inventory glut. Seoul’s Yonhap News Agency reports that the manufacturer has 660,000 unsold tyres, or 8.5 per cent of its monthly 7.75 million production capacity. The agency quotes an unnamed Hankook source as saying that the growth in demand expected after March had failed to materialise, leading to the surplus.
China-based Triangle Group Co. Ltd. may already be the world’s 15th largest tyre manufacturer, according to Tyres & Accessories’ latest global tyre manufacturer ranking, but it is clear that the company is intending to go far further than this. Rhetoric to this effect is not uncommon amongst Far Eastern businesses, but as is always the case, actions speak louder than words. With its latest appearance in Essen Triangle has begun fleshing out its plans to take the company from being a Chinese manufacturer with export sales to being a large international manufacturer with global reach.
When Tyres & Accessories spoke with Bertus Heuver earlier this year, he shared that Heuver Tyrewholesale was adopting a more geographic-based strategy in regards to its marketing, and was in the process of appointing new team members to enable the wholesaler’s national teams to cover all areas of Europe where it regularly does business. Four members have been added to the Heuver team in recent months.
Cooper Tire executives have confirmed that reports of a fire at the company’s Cooper Chengshan (Shandong)Tire Company Ltd. (CCT) manufacturing plant in Rongcheng, China were correct. As far as the details are concerned, writing in an official statement Cooper Tire officials confirmed that the fire took place on 28 May outside of the factory site proper. According to the company, there were no injuries and “minimal damage to property”.
At the time photographs of the fire were published alongside local Chinese reports, however these provided no details of what damage the fire caused or where it actually took place. Cooper has now explained that “the fire involved a scrap tyre area outside the main manufacturing plant structure”. As a result production was temporarily suspended. It has now returned to normal.
A fire broke out at the Cooper and Chengshan’s Rongcheng factory in Shandong Province, Eastern China on Tuesday 27 May. Several local news sources including the Xinhua news agency have reported the news and photographs showing a large plume of smoke rising about the factory have also been published.
The 5th China (Guangrao) International Rubber Tire & Auto Accessory Exhibition talkes place between 15 and 17 May 2014. According to organiser the China International Trade Promotion Committee, more than 600 exhibitors from China and overseas are expected at this year’s show. The previous exhibition in Guangrao, Shandong Province hosted more than 40,000 visitors, the organiser reports. […]
Volkswagen has delivered nearly two million passenger cars in the first four months of 2014, setting a new record for the period. 1.99 million vehicles were handed over to customers in the period to April, representing an increase of 4.6 per cent (January-April 2013: 1.91 million). Christian Klingler, board member for sales and marketing for the Volkswagen Group, attributed the success to “good sales developments in China and Europe” and “sustained high demand” for heritage products such as the Golf, now in its seventh generation.
Carlisle based tyre brand Dmack has been awarded a place in the final of the Cathay Pacific China Business Awards. Local news source North West Evening Mail reports that the company is shortlisted in the Rising Star category. The awards recognise UK and Irish businesses demonstrating existing positive returns and ongoing plans for future investment in China and Hong Kong, with the Rising Star award given to those opening Chinese operations in the last five years.
Under restructuring measures Bridgestone is undertaking in the Asia region, Bridgestone Asia Pacific Pte Ltd. (BSAP) will expand its area of responsibility to include tyre operations in China. From 1 July, Bridgestone Asia Pacific – henceforth abbreviated to BSCAP – will become the head office in charge of both BSAP and Bridgestone (China) Investment Co. Ltd., the company’s current Chinese head office.
Yokohama Rubber reports that its operating income reached a record high in the first quarter of 2014. On the back of net income of net sales that were up 9.6 per cent year-on-year to 139.9 billion yen (£810.9 million), operating income jumped 54.6 to 11.7 billion yen (£67.8 million). Net income, at 6.5 billion yen (£37.7 million), was 14.8 per cent higher than in the first quarter of 2013. Sales and earnings increased in each of Yokohama’s three business sectors: tyres, industrial products, and other products. The company says its tyre business’ strong performance reflected robust growth in Japan and sales growth overseas. Operating income benefited in each business sector from a downward trend in raw material prices and from the weakening of the yen, as well as from sales growth.
As Cooper Tire & Rubber enters its centennial year, the US tyre maker has reported first quarter operating profit slightly below the record result achieved last year. On the back of net sales of US$796 million, 7.5 per cent lower than a year earlier, Cooper achieved a quarter operating profit of $81 million, 16.5 per cent down on the first quarter 2013 operating profit, which was the highest ever in the company’s 100-year history. Operating profit was 10.2 per cent of net sales. The company reported net income attributable to Cooper Tire & Rubber Company of $0.71 per share, or $45 million, in the first quarter. This compares with $56 million, or $0.87 per share, for the same period last year.
Reifen 2014 organiser Messe Essen says preparations for this month’s trade fair are in “full swing” ahead of the show’s opening on 27 May. As of the start of May, 660 exhibitors from 44 countries have signed up for Reifen 2014, with oversees exhibitors accounting for around 70 per cent of the companies with a presence at the Essen show. Messe Essen says than China is the best-represented country in terms of exhibitor numbers, followed by Germany, Italy, the Netherlands and the USA. In regards to visitors, Messe Essen is expecting members of the tyre and related trades from some 130 countries to visit Reifen 2014.
Revenue and operating profit at Hankook Tire was marginally lower year-on-year in the first quarter of 2014, the company reported on 30 April. Global sales revenue amounted to KRW 1.675 trillion (£958.9 million) between 1 January and 31 March, 0.3 per cent lower than the revenue achieved in the first quarter of 2013. Operating profit in Q1 2014 was KRW 260.1 billion (£148.9 million), 0.7 per cent less than a year earlier. Operating profit to sales ratio was 15.5 per cent.
During the first quarter of the 2014 fiscal year, Michelin experienced a 3.4 per cent rise in volumes, with fast original equipment segment momentum and growth in the truck tyre business, while weak mining tyre sales were offset by growth in aviation and two-wheel tyre business within the specialty tyre segment. This increase in volumes did not translate to higher net sales, however.
Overall Michelin Group sales declined 2.4 per cent year-on-year to €4.76 billion.
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.
