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.
Deutsche Bank’s decision to downgrade its advice rating for Bridgestone shares from “buy” to “hold” on 12 September resulted in a 1.4 per cent fall in the Japanese tyre manufacturer’s share price to 3,430 yen in response to the report.
In the latest installment in the on-going Apollo/Cooper merger saga, a Chinese court has postponed a hearing on a case brought against the combination by Chinese manufacturing business Cooper Chengshan.
The Al Dobowi Group, UK importer of Linglong TBR tyres, has announced a new distribution partnership with Essex’s G&S Tyre Services. Al Dobowi says G&S has developed a reputation for providing an exemplary level of service to the UK fleet market and demanding vehicle operators, while G&S identified Linglong as a brand with UK market potential.
Cabot Corporation has said that its Chinese “output capacity” will rise 25 per ecnt along with the operation of a plant in Xingtai, Hebei province. However the company is also quoted by local news sources as saying that it will not seek to go public and make acquisitions in China.
For the second year running, Cheng Shin Rubber Ind. Co. Ltd, trading as Maxxis International, has been named one of Asia's Fab 50 companies by Forbes magazine.
In explaining Maxxis' inclusion on the list, Forbes cited the company's record revenue in 2012, boosted by demand in emerging markets including Indonesia, China and India. Forbes also noted that Maxxis' net profit grew by 86 per cent last year to $530 million.
On 2 September, Kumho Tire opened a new research and development centre near the South Korean capital Seoul. Located in Yongin City and built over the course of five years, the centre covers a 34,873 square metre land area with a total floorspace of 22,823 square metres. This space is shared by a research building and testing facility. Approximately 600 researchers from Korea and abroad will be employed at the site and work with supercomputers, physical testing equipment, chemical and instrumental analysis equipment, performance research equipment and more to develop new products.
Cooper Tire & Rubber shareholders will vote on the company’s acquisition by Apollo Tyres at a meeting scheduled for 30 September. Cooper stockholders of record as of the close of business 30 August 2013 are entitled to vote at the special meeting, which will take place in the US city of Cleveland.
A report in the Financial times says that Hankook will shortly begin work on building its first plant in the USA as part of its plan to increase its presence in North America. The move is seen as a key part of Hankook's ambition to become one of the world's top five tyre manufacturers.
With China now the largest car and tyre producing marketing on earth, and with five Chinese tyre makers in the global top 20 its importance in the global landscape cannot be (and generally isn’t) ignored. In addition to scale, the largest Chinese manufacturers are increasingly investing in up-ing the standards of products they products, with their eyes on the global OE prize. The fact that import tariffs and labelling laws are coming and going in the midst of this means things are far from simple. With this in mind, Tyre & Accessories looks forward to attending this year’s Reifen China exhibition in Shanghai – not only for what goes on show days inside the hall, but for what the connections we make inside the trade fair tell us about what is going on in the rest of the market.
Chinese tyre manufacturer Hangzhou Zhongce Rubber Company Limited (ZC Rubber) believes it is the world’s fourth largest producer of truck and bus tyres with a projected output of over 12 million radial tyres in 2013, while the company’s brand Westlake claims a “market-leading position in China”.
Myanmar’s automotive market is likely to grow to 95,300 units by 2010, a compound annual growth rate (CAGR) of 7.8 per cent (2013-2019). That’s the view of researchers at Frost & Sullivan who suggest that this will be driven by a growing economy, infrastructure development and increasing income as well as better integration with ASEAN nations. Their view is that real growth however is likely to start only after 2014.
All-steel truck radial tyre manufacturer Dynacargo began exporting to the United States earlier this year. According to online news reports, Dynacargo (a member company of Shaanxi Yanchang Petroleum (Group) Co., Ltd.-Kaidi Xixiang Company) has gained permission from Shaanxi Entry-Exit Inspection and Quarantine Bureau to export to the North American market.
Online news sources are reporting that South China Tire & Rubber Co., Ltd. and Guangzhou Yitao Rubber Manufacture Co., Ltd. have signed cooperation agreement at a ceremony celebrating the creation of the Guangzhou Huayiyang Co., Limited joint venture.
Resistance to the acquisition of Cooper Tire and Rubber by Apollo Tyres continues unabated, with workers at the Cooper Chengshan joint venture factory in China's Shandong province locking out their US managers in protest against the deal.
Workers say that the takeover will put their jobs at risk and, according to Yue Chunxue, director of the labour union at the plant, foreign managers could face the risk of "bodily injuries". He added: "unless the deal is cancelled, we will continue to boycott it until the very end. A three-month strike ended on August 17th but the union is continuing to boycott work on Cooper-branded products.
Jiangxi Black Cat Carbon Black (Black Cat Inc.) reports that exports are growing fast after the firm redoubled efforts to improve “product quality, technology innovation” as well as expanding cooperation with certain leading international companies such as Bridgestone and Michelin.
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