In 2023, China’s tyre industry experienced a number of significant changes among key personnel. Tyrepress China observes that the operations of foreign brands in China are relatively stable, with only Bridgestone China’s leaders having changed. However, several Chinese state-owned enterprises and listed companies have undergone significant personnel changes this year.
On 1 November, Federal Corporation announced that chairman and general manager Chen Heng Kuan resigned. Recently, the tyre manufacturer’s board of directors appointed new leaders. Starting 9 November, Kuo Lin-Liang, chairman of Nankang Tire, will become chairman of Federal. Chung Cheng-Yen, an executive assistant to the chairman of the Federal, assumes the general manager position.
On 1 November, Federal Corporation announced that chairman and general manager Chen Heng Kuan resigned “due to other official duties”.
On 14 March, Federal Tire said it would hold a general shareholder meeting in three months. Tyrepress China found that the tyre manufacturer will issue a “Report on losses up to half of the paid-in capital” at the general meeting of shareholders. Federal explains that “the accumulated losses of the company in 2022…reached one-half of paid-in capital”. This document shows that the Federal business situation in 2022 seems to have fallen into a trough.
On 24 February, Federal signed an off-take agreement with Vietnam XT Tyre. According to the agreement between the two parties, XT Tyre will start to produce tyres for Federal in 2023 by Federal’s orders and production specifications. Federal did not disclose the details of the cooperation with XT Tyre, including the specifications and production capacity involved in the making the agreed products and the specific timetable for the collaboration between the two parties.
On 18 November, Federal Corporation stated that Chiang Ching Hsing, the company’s chairman and general manager, resigned. Chen Heng Kuan, who is also chairman and president of Nankang, held his position. According to analysts, both Chiang Ching Hsing and Chen Heng Kuan are representatives of Nankang Rubber on the Federal Corporation’s board of directors, and Chiang Ching Hsing’s departure will not bring about a massive change in Federal Corporation.
Recently, four Taiwanese tyre manufacturers, Cheng Shin, Nankang, Federal and Kenda, successively announced their September results. In September, Cheng Shin’s operating revenue was approximately NT$8.875 billion (about 244 million pounds, 280 million euros), an increase of 13.03 per cent over the same period last year.
Recently, Taiwanese tyre manufacturer Federal disclosed to the public its recent operations, including land development plans associated with one of its factories. Federal has two factories in Taiwan, located in Chungli and Guanyin, with a total of 535 employees. The tyre maker said the Guanyin plant has an annual capacity of 3 million tyres; the Chungli plant has been suspended due to the implementation of anti-dumping duties by the United States.
In the first week of August, Taiwanese tyre manufacturers Nankang and Federal successively released operating data for July 2022.
Nankang’s operating revenue in July was NT$660 million (about £18.22 million; 21.58 million euros), down 10.8 per cent from NT$740 million (about £20.42 million; 24.2 million euros) in the same period last year. From January to July, the tyre maker’s operating revenue was about NT$4.72 billion (about £130 million; 115 million euros), down 3.08 per cent year-on-year.
According to Federal Corporation’s 2021 annual report, which was published in mid-May 2022, on 15 October 2021, “major shareholder Nankang Rubber Tire Corp. Ltd. Nankang Rubber Tire Corp., Ltd…called an extraordinary shareholders’ meeting to obtain the management right[s].” Federal and Nankang representatives have been contacted by Tyres & Accessories for comment.
Tyre comparison website Tyre Reviews has put ten popular tyres for performance cars to the test, making the brand-new Continental SportContact 7 a winner in its first outing on the independent assessment circuit. Reviewer Jonathan Benson fitted the ten tyre combinations to a BMW-powered Toyota Supra in sizes 255/35 R19 (front) and 275/35 R19 (rear) for the test, which he conducted over nine disciplines at Conti’s Contidrom facility. Given that the tyre was proven at the circuit, and is at least 12 months newer than any other product in this test, it is perhaps a little unsurprising that the SportContact 7 prevailed, but with reasonably comfortable first-place finishes in the dry and wet handling and braking tests, Tyre Reviews concludes that the tyre sets “a new standard for the UUHP segment.”
The best designers and manufacturers of the year were recognised on 3 July at the Red Dot Gala 2017 event in Essen, Germany, and amongst the products selected by the 9-strong Red Dot judging panel were five tyres; these gained ‘Red Dot’ awards in Product Design. The awarded tyres are the Continental PremiumContact 6, Federal 595RS-RR, Laufenn I FIT, Kumho Crugen HP71 and Nexen N’Fera RU1.
In addition to reporting a pause in production at its Chungli plant due to a fire at the site, Federal Corporation also says it is readying its new factory in Taoyuan City’s Guanyin Industrial Park for its operational debut in February 2017. The Guanyin plant is Federal’s second on the island of Taiwan and the company’s third – Federal also operates a plant in Nanchang (Jingxi Province, China), which it acquired from Hero Tire in 1997.
Federal Corporation reports that production at its main factory in Chungli, Taiwan has been halted due to a fire at the site on 17 January. Warehouse facilities were damaged during the blaze, however the Chungli plant’s manufacturing facilities were unaffected and Federal confirms there were no casualties.
The leading Taiwanese tyre manufactures are reportedly planning to raise prices by between 8-12 per cent during 2017. According to local news reports, the price hike is a reaction to the jump in synthetic rubber and natural rubber prices.
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