Haian Group’s giant tyre product lines in context

Haian Group, a Chinese manufacturer of all-steel giant OTR tyres (engineering tyres with rim diameters of 49 inches and above), has commented on the market situation in response to questions from the stock exchange.

Globally, Michelin, Bridgestone and Goodyear are described as the first echelon of giant OTR products. Chinese tyre manufacturers capable of producing all-steel giant tyres include Haian, Sailun, Xingyuan, Triangle, Zhongce, Aeolus and Doublestar. In early January, Linglong’s Jilin plant had the first 49-inch all-steel OTR tyre, also entering this field.

In 2022 and the first half of 2023, Haian Group produced 10,400 and 7,100 giant OTR tyres, respectively. Among the tyres it makes, the sales of large tyres with rim diameters between 57 inches and 63 inches have increased rapidly in recent years. Haian Group said that the sales volume of tyre products with sizes in this range has increased from 21.24 per cent a few years ago to 42.58 per cent.

According to Haian Group’s disclosure, “the current production capacity of each production line is no longer able to meet the incremental market demand”. Therefore, the giant tyre manufacturer hopes to raise funds through listing to expand production capacity further, transform automated production lines, build R&D centres, and supplement working capital.

Not long ago, media reports from local authorities stated that the “Hai’an Group High-end Equipment Industrial Park”, with a total investment of 7 billion yuan, will start construction in the first half of 2024 to build large and giant engineering radial tyre production lines. However, before it is listed on the market, where the funds for this investment of Haian Group come from requires special attention.