Fan Rende, chairman of the China Rubber Industry Association, shares that China has launched a plan to develop ‘green’ tyres. The plan calls for half of China’s tyre makers to be capable of manufacturing fuel-efficient tyres by the end of the country’s current five year guideline in December 2015, and for half of these tyre makers’ output to be green tyres by the same date.
With China accounting for about 34 per cent of global rubber demand in 2011 and with demand for cars slowing last year in the People’ Republic, the varied economic climate is proving to be a challenging environment for the countries fast growing domestic tyre manufacturers.
According to China Daily and Bloomberg reports, China's economy is forecast to grow 8.5 per cent next year, the least in 11 years, according to the Organization for Economic Cooperation and Development (OECD). Vehicle sales may rise by the least in 13 years in 2011, plunging from last year's record 32 per cent, the China Association of Automobile Manufacturers reported.
The first Chinese designed and manufactured super wide truck radial to be marketed in the US was launched at the SEMA show in Las Vegas on November 1. The Double Coin FT125 super wide, a low rolling resistance trailer position tyre, will be distributed in the US by the China Manufacturers Association; the distributor reports the FT125 has already attained EPA SmartWay verification.
The total profits of seven Chinese tyre makers fell in the first half of 2011 compared to a year ago, despite higher revenues. The seven tyre makers included Double Coin Holdings, Aeolus, Qingdao Double Star and ST Yellow Sea. Yellow Sea was reportedly the only one of the seven to report a overall loss, according to news reports.
Double Coin Tires and China Manufacturers Alliance have launched a refreshed US market website. In addition to providing a wider viewing area and all-new tyre imagery, the updated www.doublecoin-us.com website features a resource centre where information and reference material can be downloaded plus a customer testimonial page.
Alliance Tire Americas has launched the Primex LS Xtreme LS-2, a new radial forestry tyre, reports Tire Review. The new tyre features a variable-angle, tapered lug design for “exceptional performance in a wide array of terrain and soil conditions,” Alliance said. “It’s exceptionally stable on steep hillsides, delivering market-leading traction in virtually all soil conditions: sand, mud, clay and everything in between.”
Zafco announced the launch of its India operations at Tyrexpo India 2011, in Chennai, which opened on 5 July. At the trade show Zafco will exhibit the Double Coin as well as Zeetex brands it carries. The set up in India will see the establishment of 84 trucking centres across Northern and Western India that will meet the demands of the industrial and commercial sector. This will also provide a foundation for ZAFCO to eventually launch into the premium segment of the tyre market.
The China Manufacturers Alliance has gained an OE position with Kansas-based manufacturer Landoll Corporation to supply all Landoll trailer models with Double Coin medium truck radials. Standard tyres to be fitted on Landoll’s trailer models include the Double Coin RT500 in sizes 10R17.5, 255/70R22.5, and 235/75R17.5.
News of falling rubber prices should be welcomed by Chinese tyre makers; the Shanghai-based Oriental Morning Post reports that 50 per cent of tyre manufacturers in China have recorded losses in the year to date as a result of continued high natural rubber prices. Most manufacturers have responded to recent high raw material costs with price increases – the China Rubber Industry Association notes that since the Chinese New Year holiday period a number of tyre makers, including Michelin, Bridgestone, and Double Coin Holdings, have raised prices by between five and eight per cent. The association adds that those who have not yet increased prices are planning to do so either in March or April.
The China Manufacturers Association has hired Bob O’Donnell as its new OE and fleet sales manager. O’Donnell comes to CMA with more than 38 years of industry experience, most recently with Xtra Lease and Alcoa Wheel Products.
The China Rubber Industry Association has referred to rising rubber costs as a ‘grim situation’. The CRIA reports that rubber prices, currently approaching RMB 40,000 per ton, have caused tyre production costs to increase by 50 per cent and squeezed profit margins to a record low, with year-on-year profits declining by up to 50 per cent last year. In light of this industry crisis, seven CRIA members met in Beijing on January 13 to discuss possible countermeasures.
One year after their final break up, Double Coin Holdings and Groupe Michelin may be getting back together again for a project in China, reports Tire Review. The US publication says information originally published by SinoCast Daily Business indicates the two companies are in negotiations concerning Double Coin’s planned passenger car tyre plant in Hefei, China. Double Coin announced plans for the plant in December 2010. Michelin, according to SinoCast, denies details of one rumour that has it taking a 30 per cent share in the new plant, but has offered no other statement.
Double Coin Holdings has announced plans to invest at least RMB 3.18 billion (£301.5 million) establishing a wholly owned subsidiary in China’s Anhui Province. Within this subsidiary, known as Double Coin Huili Tire Co., the company will establish a new factory capable of producing 15 million tyres per annum. Double Coin will provide RMB 1 billion of the funds for the factory project, with the remainder coming from bank loans and from a RMB 900 million loan obtained from controlling shareholder Shanghai Huayi (Group) Company.
Liverpool-based wholesaler Kirkby Tyres is promoting the latest additions to its Double Coin range of “non premium” truck tyres. According to the company, three new 19.5-inch low profile tyres in sizes 445/45R19.5, 435/50R19.5 and 385/55R19.5 were recently added to the range. To complement these, a selection of low profile 22.5-inch tyres have also been released in 295/60R22.5, 315/60R22.5 and 385/55R22.5. Double Coin products are already available in 17.5, 20, 22.5, 24 and 24.5 variants.
Kirkby Tyres and Indian manufacturer BKT have announced that they are joining forces at October’s Brityrex International exhibition to promote their new UK distribution agreement. In addition show organisers ECI International have announced that the Tyre Industry Federation (TIF) has confirmed it will be present with a member’s lounge and business briefings during the show, which will run on 5, 6 and 7 October.
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