Goodtyre Presses Forward Into Europe
Although the domestic Chinese tyre market is growing at an enormous rate, export markets are also offering an ever more tempting business opportunity for tyre manufacturers from China. In light of major production over-capacities in particular in the PC tyre segment European and American tyre markets almost assure profitable and relatively easy growth perspectives to Chinese tyre companies. The Yinbao Tyre Group for example is one company that is currently adjusting its own growth strategy towards a more international standing. The company is based in the city of Shouguang in Shandong province. Export manager Sino He explains that the company, which was founded in 1994 has sold its truck, OTR and industrial tyres on the domestic market until very recently. It is offering the tyre brands Goodtyre, Yinbao and Huibao.
With the introduction of radial tyre technology three years ago the domestic business strategy had to change. Today the Yinbao Tyre Group produces about 1 million radial truck and bus tyres every year. At the same time it continues to produce bias tyres in its production facilities as well. The company now has an annual turnover of about $100 million of which 20 per cent is generated on export markets. And this is only after the company has begun to sell tyres abroad earlier this year.
Today the Goodtyre brand is generally regarded as the export tyre brand. The Yinbao brand in turn will remain the dominating brand for the Chinese tyre business. In the mid-term, export manager Sino He says, the export share will increase up to 50 per cent of the company’s turnover although he doesn’t specify when this would be. In either case the Yinbao Tyre Group wants to increasingly promote its Goodtyre brand on the European and American tyre brands. Right now the company is looking for tyre importers as well as new business partners in general. The radial truck tyre portfolio gives the impression that there is room for improvement, although at first sight all the most important tread patterns and sizes for the European market are available from the Yinbao Tyre Group.
It is an outspoken secret that the company has taken the decision to produce radial passenger car tyres in the very near future. It is “very likely” that the Yinbao Tyre Group is going to invest about 35 million euros into the construction of a new radial PC tyre factory, acknowledges the export manager. The production capacity of this new factory also fits Chinese dimensions: Yinbao will install an annual production capacity of about 5 million units in this new facility.