Cheng Shin launching 40 million tyre capacity expansion in China
Luo Yongli, deputy general manager of the company, recently told a briefing that he is optimistic about the operation of Cheng Shin in 2023. In the past, Cheng Shin has reportedly significantly reduced capital expenditures to combat adversity in the operating environment. But with the overall situation expected to improve, the tyre maker will start expanding production capacity, including launching a 40 million tyre capacity expansion plan at factories in mainland China.
What 2022’s most popular tyre industry stories tell us about the future
Those that don’t learn from history are doomed to repeat it. The well-known saying might not be completely transferable to this column, but as we kick-start 2023 analysing the most popular stories on our Tyrepress.com website does help us understand what the major themes of last year were. And a closer look at those themes will reveal which issues are continuing into this year. January’s magazine focuses on the ever-resilient agricultural tyre sector (see Tyres & Accessories, January, page 36 onwards) as well as the latest developments in the TPMS and sensor technology segment (see page 20), but first let’s take a look at the biggest stories of 2022 as recorded online.
Goodyear Tire & Rubber is working to ensure its former employees in the USA receive their company pensions following issues with some payments being made. According to the Akron Beacon Journal, a daily newspaper based in Goodyear’s hometown, pensions were due to be paid last Saturday. The publication quotes Doug Grassian, Goodyears director of global external and digital communications, as saying the company is working to fix the problem.
Not only does the DTM touring car championship have a new home as part of Europe’s largest motoring association, the ADAC, changes are also afoot in the tyre department. Pirelli, who has long equipped another ADAC-backed series, is taking over from Michelin as exclusive DTM tyre supplier in 2023.
Thomas Harbo returns as CEO of Euromaster Danmark A/S
Effective 4 January 2023, Thomas Harbo has been appointed as CEO of Euromaster Danmark A/S. Thomas replaces Henrik Fusager, who since August 2022 has held the dual role of CEO of both Euromaster Denmark and Euromaster Switzerland.
China cancels preferential tariffs on import tyre products
On 28 December 2022, the Customs Tariff Commission of China’s State Council issued an announcement stating that from 1 January 2023, import tariffs on some commodities will be adjusted. In 2023, the products that can still enjoy preferential tariffs are retreaded tyres for aircraft. As in the previous year, such products will be subject to a provisional import duty of 4 per cent. Under normal circumstances, Chinese customs should impose a 20 per cent tariff on retreaded tyres for aircraft.
On 30 December Linglong announced that it would adjust the construction of its seventh production base in China. The construction location of the project was changed from Lujiang, Anhui, to Lu’an, Anhui. At the same time, the tyre manufacturer’s Lu’an factory is preparing to build a project with an annual output of 14 million sets of high-performance radial tyres and a project to regenerate via retreading and material recovery 30,000 tons of waste tyres. In the original design, Linglong’s seventh factory in China was intended to have an annual production capacity of 14.6 million sets of radial tyres.
With the first post-pandemic TyreXpo Asia getting underway in a little over two months’ time, the organiser of the B2B tyre trade show shares that it can “no longer guarantee floorspace” due to overwhelming demand. It has therefore begun a waitlist for exhibitors who wish to be present when TyreXpo Asia takes place at the Marina Bay Sands Convention Centre on 8 to 10 March.
Sales of Bandag retreaded tyres increased 9% in North America during 2022, with more than seven million units sold during the year. A US$60 million investment in capacities & debut of a new programme for small and mid-sized fleets should ensure continued growth in 2023.
According to export data released by China Customs, China exported 40.72 million new pneumatic rubber tyres (a term that includes all pneumatic tyres including bicycles as well as enginen-drive tyre products) in November. The exported tyres weighed 550,000 tons and were worth 9.88 billion yuan (about £1.18 billion; 1.33 billion euros).
Chinese tyre maker Jiangsu General Science Technology intends to open its new plant in Cambodia during the first half of this year. The General Tire Technology (Cambodia) Co., Ltd. facility now being set up in the Sihanoukville Special Economic Zone is expected to enter production in May with a capacity to manufacture 5 million semi-steel radial tyres and 900,000 all-steel radial tyres.
First Stop names Marais as UK and Ireland franchise manager
First Stop Tyres & Car Services has confirmed that Brenden Marais has been appointed as the new national franchise manager for First Stop in the UK and Ireland. He will also act as the country manager for the First Stop network in Ireland.
On 2 January 2023, Warren Rudman left his role as general manager Sentury Tire Spain. Rudman’s departure follows Sentury’s 30 December announcement that the company is planning to invest in a new tyre factory in Morocco. Signing off his departure announcement, Rudman noted “I will start a new journey soon”.