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.
China’s first privately-owned regional airline has awarded Birmingham-based Dunlop Aircraft Tyres a three-year deal to supply tyres for its expanding fleet of regional airliners. Under the agreement, Dunlop Aircraft Tyres will support China Express Airlines’ Bombardier CRJ900 NextGen aircraft.
Top listing in the China Petroleum and Chemical Industry Federation’s 2013 ‘Energy Efficiency Frontrunner’ rating for the carbon black manufacturing sector has gone to Cabot Corporation. Local operation Cabot Chemical (Tianjin) Co., Ltd participated in the benchmark ranking for the first time in 2013 and was named the leading carbon black company in China in terms of energy efficiency. Cabot is the first multinational company to take part in the ranking.
In this month’s magazine (July 2014), as well as our the conclusion of our comprehensive review of the Essen Show (see page 40 onwards) plus features on manufacturing (from page 24) and batteries (page 8+), we report on the potential “Return of US tyre import tariffs” (on page 30). Reading this article, you could be forgiven for thinking you had stepped into a time warp to 2009 where proceedings followed a very similar course. This time round, the potential implementation of a second round of import US import tariffs aimed squarely at China have fermented rumours about whether anything similar is likely to happen in Europe. So will it?
According to Greek mythology, Aeolus was the ruler of the winds, and for this reason Aeolus Tyres’ Western Europe general manager considers sponsoring a participant in the Volvo Ocean Race 2014/2015 highly appropriate. At a press conference in the French seaport of Lorient, Thomas Wohlgemuth said the sponsorship deal with the DongFeng Racing Team had “set the sails towards the right direction” and will aid Aeolus in its goal of positioning itself at the apex of its business segment.
Cheng Shin Rubber Ind. Co. Ltd. (the parent company of Maxxis International) is investing over US$500 million in building new plants in Indonesia and Taiwan as well as expanding three existing plants in China.
The Tire Industry Association (TIA) is opposing the International Trade Commission (ITC) that would limit the import of Chinese-made passenger and light truck tyres into the US. TIA previously opposed a similar measure in 2009. According to a statement published today, the association “feels strongly that this measure, despite being well-intentioned, would not help in the preservation of manufacturing jobs, and would be harmful to consumers, as these tyres are often an affordable solution to those drivers with limited budgets. However, the association also reiterates its long-standing position that all tyres – regardless of country of origin – must be held to all applicable Federal Motor Vehicle Safety Standards.”
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.
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