Giti Tire
The Primewell range of tyres is manufactured by GITI Tire, one of the world’s top ten largest tyre makers. The Chinese manufacturer produces a complete and modern range that is exported to over 100 countries. In the UK Primewell is exclusive brand of Stapleton’s Tyre Services, and the distributor has recently launched its Primewell Key Dealer Programme.
In January 2009 GITI Tire Europe incorporated a new UK truck tyre subsidiary, a move taken to enable the company to better focus upon the specialist needs of this market segment. The independent company took over the truck tyre business from Romney International/Compass Group (who continue to distribute GITI’s passenger car range). GITI has now decided to adopt this British model in Germany, and as of October 26 the company has taken over distribution of truck tyres in the German market from Reifen Gundlach, who had served as exclusive importer since 1994.
Now President Barack Obama has stuck 35 per cent import duty on all passenger car and light truck tyres from China for the next three years what happens next? Chinese tyre manufacturers won’t want to sell fewer tyres each year. But US importers, consumers and manufacturers are equally unlikely to want to pay or absorb the additional costs. Tyres & Accessories spoke to a range of US, Far Eastern and Chinese companies and found that manufacturers are having to rely heavily on production flexibility, while traders are now setting their sights on one market in particular – Europe.
Stephen Wu, managing director of Chinese tyre trading operation, Best Choice International, reports that orders from the US stopped came to a virtual standstill in July. Their strategy is now openly towards producing more European market orientated products: “We stopped an SUV/LT project and waited for the decision. And we produced more European UHP tyre sizes, not US sizes.” Companies like Best Choice are now prioritising orders in other markets – especially Europe – where they aim to sell the most popular sizes, UHP and winter tyres. Best Choice is apparently interested in other markets as well, but Wu refused to give further details at this time. As far as Best Choice is concerned there is now zero chance of getting orders in the first year of the tariff, except in the 19-inch and over category. As a result competition is likely to be based on just two factors: price and delivery time.
Tire Review has compiled a variety of news stories based around the introduction of tariffs on imported China-made passenger tyres. Here is a sampling of the most relevant items from the past day:
As part of GITI Tire’s ongoing programme of product developments (see June Tyres & Accessories for further details), the company has added four patterns to its Primewell and GTRadial branded truck ranges. Three of the four new patterns (PTL711, PDM331 and PAM532) are being added to the Primewell range.
Group International and GITI Tire USA have announced a distribution arrangement through which TGI will distribute GT Radial branded tires in South Florida. TGI will carry the full line of GT Radial tyres, including the Maxtour line, Champiro 128, Champiro 228, Champiro 328, Champiro 528, Savero H/T, Adventuro A/T II and Adventuro M/T lines. The GT Radial line up will be stocked in the company’s Miami distribution centre.
Duties of up to 55 per cent may be imposed upon Chinese tyres imported into the US in an attempt to reduce their effect on local manufacturers. On June 29 the US International Trade Commission ruled 4 to 2 in favour of imposing tariffs upon passenger car and light commercial vehicle tyres imported from China for a three-year period. Proposed duties for the first year have been set at 55 per cent of the tyre’s value, while in the second and third years the rate would drop to 45 and 35 per cent respectively. These tariffs would be charged on top of the current rate of duty.
In a somewhat unexpected change in direction the US International Trade Commission will recommend a series of duty increases on Chinese-produced passenger and light truck/SUV tyres exported to the US. Monday’s decision, which is being forwarded to President Obama for his consideration, would place a three-tiered additional duty on the tyres based on their value – 55 per cent in the first year, 45 per cent in the second year, and 35 per cent in the third year. The fees would presumably make the retail cost of Chinese tyres more expensive in the US.
The duty plan was not sought by the United Steelworkers, which petitioned the government for a rollback in the number of consumer tyres imported from China. On June 18, the ITC ruled in favor of the USW by a 4-2 vote. That same 4-2 majority made the duty recommendation. In addition to the duty, the ITC recommends that the President direct the US Department of Labor and the U.S. Department of Commerce to provide expedited consideration of Trade Adjustment Assistance for firms and/or workers that are affected by the imported tyres. (Tire Review/Akron)
The quantity of Chinese made consumer tyres is indeed harming the local industry, the US International Trade Decision has ruled. On June 18 the ITC voted 4-2 in favour of a United Steelworkers initiated petition, which seeks to restrict permissible imports to 2005 levels. A ruling in favour of the petition means the ITC will meet again later in June to decide upon recommendations for the Obama administration.
In order to strengthen its place in the lucrative European replacement market, and with a view to positioning itself for OE contracts, GITI Tire has invested significantly in the expansion of both the company’s main R&D centre in China and the development of a world-class European Technical Centre (ETC). The ETC is based at the renowned MIRA Ltd. facility near Birmingham in the UK where company representatives emphasised that they are already making thorough use of state of the art test facilities a highly experienced test engineers.
For the team, which is led by experienced tyre R&D expert Eddie Young, the first step was to undertake an extensive benchmark programme in order to gain a full understanding of the main competitor’s current performance levels and strengths and weaknesses with the clear objective of designing and engineering GITI products to reach and even surpass these premium competitor’s performance levels. And when you consider that the global R&D is both international in its representation and comprised of technicians who have previously worked at the highest levels of leading tyre brands, you can understand why the bar has been set so high.
GITI Tire (Europe) B.V. has announced that it will completely replace its passenger car and truck product offerings by the opening months of 2010. The brand overhaul also includes the renewal of GT Radial brand positioning this as the company’s flagship brand identity. During a detailed briefing, the company produced data apparently showing that GITI’s ambitious aims of competing on the same level as the premium tyre manufacturers, with the launch of the new range of products, are now within reach. According to the company, large-scale investment in research and development has enabled GITI to markedly improve its product’s performance compared with the previous generation and – crucially – to be prepared for forthcoming legislative requirements.
Speaking from the company’s European Technical Centre at MIRA in the UK, company representatives told Tyres & Accessories that the R&D department has been planning compliance to the forthcoming s-marking requirements since 2006 and is on-track to conform to the next round of legislation in 2012.
On 26th January 2009 GiTi Tire Europe BV incorporated a new UK truck tyre subsidiary. Company representatives report that the Chinese tyre manufacturer initiated the move in order to enable the company to focus better on the specialist needs of the truck tyre market.
Planning for the new subsidiary began in mid-2008, and the company now has premises, a third party logistics operation and three sales people on the road. The next appointment scheduled in the company’s lean business plan is the recruitment of an operations manager to oversee the truck tyre subsidiary’s back office operations.
Giti Tire USA has introduced the GT876, a wide base all-position radial. Designed for on-/off-highway and heavy haul applications, the GT876 features a wide footprint, chip and cut resistant tread compound, and a deep, aggressive tread. The tyre is now available in sizes 385/65R22.5 18PR, 425/65R22.5 20PR and 445/65R22.5 20PR. (Tire Review/Akron)
Giti Tire USA has introduced the Champiro 228, a “performance touring” line of 15 H- and V-rated sizes. The new tyre features Giti’s “Nanotek” silica tread compound for wet/dry grip and lower rolling resistance, four circumferential grooves for water dispersion, shoulder grooves to resist hydroplaning, and a low noise tread design. The Champiro 228 is now available to dealers in 16- and 17-inch wheel diameters. (Tire Review/Akron)
China Sunsine Chemical Holdings is one of China’s largest rubber accelerator producers. At present the company possesses a total annual production capacity of 50,000 tons of rubber accelerators per annum, plus a further 10,000 tons of insoluble sulphur and 10,000 tons of anti-oxidant. These chemicals are sold to the leading global tyre manufacturers, including Bridgestone, Michelin, Goodyear, Continental, Pirelli, Sumitomo Rubber, Yokohama, Hankook, Cooper and Kumho. In China, the company supplies – amongst others – Giti Tire, Aeolus Tyre, Shanghai Tyre, Hangzhou Zhongce Rubber and Chengshan Corporation. Worldwide, China Sunsine boasts more than 400 customers in over 30 countries.
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