Giti Tire
Giti Tire, a large-scale tyre manufacturer based in China and headquartered in Singapore, has joined the International Rubber Study Group (IRSG). Giti, with businesses in many parts of the world, is presently exporting its tyres to more than 80 countries. Lion Copolymer L.L.C., reputed to be one of the largest SBR producers in the US, has also joined the IRSG.
Pricing of GITI Tire’s $200 million secured note concluded a day late on 19 January in Hong Kong. The bond will list in Singapore. Apart from helping its parent, the proceeds are expected to be used for capital expenditure, general corporate purposes and possible acquisition of other tyre businesses.
Giti Tire Pte Ltd’s $200 million bond issue has attracted about $500 million in orders, a source close to the deal told Reuters. The five-year bond issue, not callable for three years, is expected to be priced during London trading hours today. A yield guidance of around 12.5 per cent has reportedly been indicated. The company received requests for 30 one-on-one meetings with potential investors, the source said, a strong number given the size of the deal. S&P said the funds would be used to extend a $160 million loan to GITI’s parent company, for future investments and for working capital requirements.
Giti Tire (China) Investment Co. Ltd, China’s largest tyremaker, has voiced its intention to raise tyre production capacity at its Hualin factory. The company intends to boost annual capacity there by a further 4.6 million tyres from its current 3.4 million by the end of 2008.
Giti Tire operates six factories in Mainland China, the largest of these being in Anhui and Fujian provinces. The company recently announced plans to sell bonds in order to free up revenue for capital expenditure.
Giti Tire, the largest manufacturer of tyres in China, reportedly intends to raise US$200 million from its first bond sale, being held to raise revenue for capital expenditure and possible acquisitions.
(Akron/Tire Review) Longtime tyre industry veteran and current Giti Tire sales director Don Driver died unexpectedly on Oct. 14. The well-known and respected tireman was 56, and apparently suffered a heart attack. Driver began his tyre career as a territory sales representative with Michelin in the early 1970s, moving on to Canada’s Active Green+Ross as a commercial salesman later that decade. He then joined Bridgestone/Firestone Canada and spent 17 years with the tyremaker, including a stint as national sales manager. Driver then moved on to Maine Industrial Tire as vice president of sales and marketing before joining Giti Tire in 2003. He leaves wife, Carolyn, and sons, David and Shane.
For a company like Shandong Linglong Rubber Co., Ltd. presence at the CITExpo is obligatory. In the past other major Chinese manufacturers like Giti Tire or Chengshan used the CITExpo for their purposes. This year Linglong was by far the biggest manufacturer exhibiting at the Shanghai tyre show with all the other tyre majors missing. For export manager Merry Wang this doens’t mean that Linglong has to act like its competitors. On the contrary: “We want to build a brand,” she says with self-confidence.
The increasing product quality and the level of distribution of Chinese tyres in the UK and Europe clearly demonstrates how the Far Eastern manufacturers are closing the gap between themselves and the European/US markets. Another important indicator is the existence of a renowned tyre exhibition, a title which by all accounts has already been given to China International Tire Expo (CITExpo) in the eyes of visitors. This show has developed strongly in the four years since it was first held in Shanghai. Today CITExpo could be considered as one of the leading tyre exhibitions in China and even in Asia. This year the show again set new standards although CITExpo is still far away from an international reputation held by the Reifen show in Germany or the SEMA show in Las Vegas. However, the CITExpo clearly is on-track towards becoming a fixed entry on the international tyre agenda. The organisers have once again proved themselves capable of offering the right show to the ever-increasing number of exhibitors and visitors.
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Although demand for road freight transport in Europe is predicted to increase substantially by 2020, the road ahead looks difficult for many established transport companies. Spiralling fuel prices, increased competition following enlargement of the EU and stricter environmental and safety legislation are squeezing margins. As a result price and overall economy are as important as ever for truck tyre consumers. Tyres & Accessories collated all the recent UK market data and asked what effect this ‘cost culture’ is having on the UK market.
US importer and distributor, Orteck International, is suing Shanghai-based Giti Tire (GT) for fraud. In a lawsuit filed in the federal district court in Greenbelt, Orteck claims the GT undertook a scheme to eliminate the company as the exclusive distributor of its tyres in the US.
China’s rich culture and long history make it one of the most fascinating and legendary countries in the world. After a few days of travelling in China, the differences between east and west become obvious. Some things are similar to what we experience in our everyday lives in Europe, other things are vastly different. One fact is apparent, there is a Great Wall of China sized gap in Western countries’ understanding of this enormous nation. Subscribers to Tyres & Accessories can read online or download the supplement by clicking "more."
Nokian Tyres and Giti Tire (China) have signed an offtake agreement which will see Giti Tire manufacture passenger car tyres on Nokian’s behalf. Based in Shanghai, Giti Tire is one of the biggest producers in China and is part of the Indonesian Gajah Tunggal group.
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