On 25 November, Guizhou Tire held a ceremony to mark the start of work on the third construction phase of its Advance Tyre (Vietnam) Co., Ltd. plant. Local government officials attended the ceremony together with counterparts from China and company management. When complete, the expansion will add 6 million semi-steel radial tyres to the plant’s annual production capacity.
Starting from 2022, Chinese tyre manufacturers have chosen to strategically enter the OTR market. ZC Rubber and Zaozhuang Mining Group chose the merger to expand their power in the OTR field. More leading Chinese tyre companies have chosen to significantly increase their OTR production capacity through new construction or production expansion.
On 15 March, the government authorities in Xiuwen County, where Guizhou Tyre (also known as Advance Tyre) is located, fined the tyre manufacturer 500,000 yuan (about £59,000; €67,000). Tyrepress China has found that the punishment was related to a production safety accident half a year ago. On 30 August 2022, a mechanical injury accident occurred in Guizhou Tyre Rubber Compounding Branch, resulting in the death of one person.
Midlands-based wholesaler GB Tyres has grown rapidly despite the challenges of lockdown and logistics during the last couple of years. Indeed, GB Tyre’s annual turnover has skyrocketed from £3 million in 2016 to full-year 2022 predictions of £50 million. Considering the company was only established in 2013, it is fair to say the business has grown to become one of the fastest growing importers and exporters of commercial vehicle tyres in Europe. Tyres & Accessories met up with commercial director Graham Hutchinson to find out more.
The first batch of radial truck tyres rolled off the production line at Guizhou Tire Co Ltd’s Vietnam plant on 1 April 2021, marking the completion of the first phase of the factory project. When Guizhou Tire’s Vietnam tyre factory, which was funded through a share issue in September last year, gets up to speed it will produce 1.2 million radial tyres a year.
During January 2021 more than 50 domestic Chinese tyre businesses announced plans to increase prices. And, according to Robert Ho, marketing officer at Comforser Tire Co. Ltd., we can expect still further prices increases in February and March.
Guizhou Tire recently broke ground on two new tyre production facilities near the firm’s headquarters in Guizhou, Guiyang province. According to Asian Rubber Journal reports, when operational, the first – a $307 million plant – is expected to generate nearly $426 million annually. Capacity is salted to be 3 million truck tyres a year.
Following the initial announcement in April 2017 as well as details given to Tyres & Accessories during an interview in September, Guizhou Advance Tyre has announced further details relating to the expansion of its Vietnam factory plans.
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Guizhou Tyre
E Bouman; Pixabay