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.
Former champion of the US tariff on Chinese-made consumer tyres, the United Steelworkers, claims the trade barrier is no longer needed. In this, the week in which the tariffs first introduced on 26 September 2009 are due to expire, the USW issued a statement addressing its right to request an extension. The USW shares that it told the US Government as far back as March that it would not seek an extension.
Over the last decade China’s tyre industry has worked hard to overcome the scepticism of many market observers in the West, and today the country boasts a number of brands established as credible players in Europe and North America. Their journey to domestic and international success has been aided by Chinese trade shows, including the annual China International Tire Expo, or CITExpo show. In September, the tenth edition of CITExpo took place in Shanghai. Speaking with Tyres & Accessories at its conclusion, the managing director of the company behind CITExpo reported a very successful show.
Bridgestone Corporation held its third annual Bridgestone Global Total Quality Management (TQM) Conference on Friday, 14 September, at the company's Global Manufacturing Education Center (G-MEC) building in Kodaira City, Tokyo. The motto for this year's event was "Standards are Our Guiding Principle,” and a focus was placed upon ‘kaizen’ – the Japanese word describing improvement or change for the better – throughout the Bridgestone Group. In that context, Bridgestone Europe’s Burgos plant in Spain was given a TQM award, in particular thanks to “open and close standard based kaizen” in the plant’s curing department.”
Although not a tyre maker in its own right, Lanxess supplies its synthetic rubbers to major manufacturers around the world. But to demonstrate the company’s competence in product innovation and its solutions for green tyres, Lanxess has entered the tyre making business, albeit on a very small scale – the German specialty chemicals company has produced an ‘AA’ rated concept tyre.
The China Rubber Industry Association says Michelin is assisting it in formulating the provisions of a new tyre label for China. A news release on the CRIA’s Chinese language website reports the French tyre maker is contributing its experience of European labeling to the project.
The latest figures from the US light vehicle replacement tyre wholesale markets suggest shipments declined 1.9 per cent in August, according to the RMA. However, financial analysts from Deutsche Bank believe there are “several factors contributing to temporary weakness in the market” and that wholesalers are currently inclined towards de-stocking (due to recent raw material cost declines, and the nearing end of Chinese tyre import tariffs. As a result many anticipate lower prices in the months ahead.
Shanghai-based manufacturer, SD International has introduced winter tyre models across several of the company's established private brands – Pace, Zeta and Maxtrek.
During a visit to Bridgestone’s Sweden Proving Ground earlier in the year, Tyres & Accessories drove in temperatures way below freezing in some of the most extreme conditions in Europe, using the manufacturer’s current Blizzak LM-30 winter rubber, and the prototype of its successor to be, the LM-32, which remains in development for the moment, as well as a comparative summer weather tyre, which behaved about as well as one would expect on heavy snow. There was, however, an intermediate all-weather tyre option, which the company is particularly focusing on in Oceanic climates such as that found in the UK.
Rubber supplier Lanxess has announced plans to make its biggest investment in China to date with the construction of a 235 million euro, 160,000 tonne a year synthetic rubber plant. The factory, which will be situated in Changzhou, Jiangsu Province, will specialise in the production of EPDM synthetic rubber, which is used largely in the automotive and construction industries.
When Reifen China opens the doors to the Shanghai New International Exhibition Center for the show between 14 and 16 November 2012, it will mark the sixth time that international tyre trade event has been held. And it comes at a good time for European buyers looking to connect with Chinese manufacturers as it is set against a backdrop of continuously increasing capacity and the relaxation of import tariffs against Chinese passenger car tyres bound for America.
Aeolus Tyre has confirmed the appointment of Wang Feng as chairman of the company’s Board, effective 30 August. Mr. Wang, who is general manager of Aeolus Tyre, was previously named acting chairman following the resignation of incumbent chairman Cao Zhaoyang on 21 August.
For the first half of the 2012 financial year, Giti Tire Corporation has reported revenue of RMB 2.06 billion (£205.0 million), a year-on-year decrease of 7.0 per cent. The Giti Tire Pte. Ltd. subsidiary says this decline was a combined effect mainly attributable to decrease in sales volume and increase of average selling price. Lower sales mainly reflected a slowdown in China related to the construction and property sectors, coupled with measures undertaken by the Chinese government to restrict credit availability. The export market decrease was largely brought about by the financial crisis in European markets, Giti Tire Corporation added.
Shandong Linglong Tyre Co. Ltd. first introduced its Green-Max passenger car tyre range in 2011, and said the new line-up met with wide acclaim. During 2012, the company has continued to expand the range, and at present a total of 69 Green-Max dimensions are available for 13 to 20-inch diameters. Recent additions include more high performance dimensions, including the increasingly popular 245/45WR17.
Say Ni Hao to two of Hefei’s newest ‘honourary citizens’. At a recent ceremony in the capital of China’s Anhui Province, Mr. Burkhardt Koeller, Continental Tire division’s executive vice-president Finance and Controlling, and Dr. Tobias Kerle, general manager of the company’s Hefei tyre plant, were awarded Hefei City ‘honourary citizenship.’ This distinction, says Continental, is an official award acknowledging the Continental Tire division’s contribution and long-term commitment to Hefei city’s economic development. Mr. Wu Cunrong, secretary of the Hefei Municipal Party Committee, presented the award to Koeller and Kerle.
Triangle Tyre reports that between 24 July and 1 August an eleven-person company delegation, led by Triangle president and chairman Ding Yuhua, visited several regions of Russia on a fact-finding mission. Topics of focus during the visit were issues regarding investment and related policy, Russia’s tyre market and vehicle manufacturers. Triangle says the group was warmly welcomed by government departments and officials.
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