Yellow Sea to Expand Capacity
Approximately £90 million is said to be earmarked for Qingdao Yellow Sea Rubber to assist it move production to a new facility. This money is to come from controlling company China National Chemical Corporation (ChemChina), and the move of production from its headquarters to an industrial park will allow an increase of all-steel radial capacity to 1.8 million units per annum in 2008, and when its semi-steel radial production moves later the overall annual capacity in the facility will be 3 million units. Additional all steel and semi-steel capacity will be added, with all construction expected to be completed by the end of next year.
Continue ReadingSameer Importing Chinese Tyres to Meet Local Demand
Kenyan manufacturer Sameer Africa has begun importing tyres from China to meet a strong demand for low priced products in its home market. This, however, says Kenya’s Business Daily newspaper, is a measure placing the company in deeper debt as it must borrow heavily to pay invoices. The company installed a new £84,000 light truck tyre assembly machine last July and also increased capacity, however the company continues to struggle, as it has since changing its name from Firestone to Yana tyres three years ago. We were not making enough money from our tyre production unit so we borrowed to finance the importation of tyres that we dont make said Sameer managing director, Eric Kimani. The Chinese brands imported, says Mr. Kimani, include Dyna and Triangle. “The tyres are affordable but very durable. When we import we dont just bring anything, we buy quality, he added.
Continue ReadingShanghai Baolong Supplies Leading OEMs
As an official supplier of tyre service products to Ford, GM and Chrysler, Shanghai Baolong Automotive Corporation hopes to maximise the value of these contracts when it comes to marketing its Digitire aftermarket TPMS products. Baolong started its business working with the trade, and now after 10 years of development the company has grown into a corporation covering R&D, investment, production and trade. As a way of offering top quality products to our customers, Shanghai Baolong Automotive Corporation and its subsidiaries follow the requirements of ISO9002, QS9000, VAD6.1, ISO/TS16949 and established a strict QC system.
Continue ReadingPneu-Logic to Supply 2 million RFID Chips to Mesnac in China
Advanced ID, a leading supplier of RFID systems to the tyre industry, is to supply millions of RFID chips to Mesnac through its Pneu-Logic division. Mesnac, a leading Chinese tyre production equipment and software maker yesterday signed a memorandum of understanding to buy a minimum of 2 million chips. The agreement also includes a quantity of RFID readers. Tyres & Accessories understands that Qingdao-based Mesnac is already working through a stock of 100,000 chips bought for use in a “range of testing purposes.” No details of the financial terms have been disclosed. The deal is something of a coup for the Swadlincote, UK-based Pneu-Logic for two reasons: Firstly the scale of the deal ensures that there is a bright future for RFID use in tyre production, with signs that take-up could increase rapidly and substantially; and secondly because Mesnac is already applying the technology in both truck/bus tyres and passenger car products.
Continue ReadingAdvanced ID to Supply 2 million RFID Chips to Mesnac in China
Advanced ID, a leading supplier of RFID systems to the tyre industry, is to supply millions of RFID chips to Mesnac through its Pneu-Logic division. Mesnac, a leading Chinese tyre production equipment and software maker yesterday signed a memorandum of understanding to buy a minimum of 2 million chips. The agreement also includes a quantity of RFID readers. Tyres & Accessories understands that Qingdao-based Mesnac is already working through a stock of 100,000 chips bought for use in a “range of testing purposes.” No details of the financial terms have been disclosed. The deal is something of a coup for the Swadlincote, UK-based Pneu-Logic for two reasons: Firstly the scale of the deal ensures that there is a bright future for RFID use in tyre production, with signs that take-up could increase rapidly and substantially; and secondly because Mesnac is already applying the technology in both truck/bus tyres and passenger car products. Yuan Zhongxhue, the chairman of the board at Mesnac, explained that the concept at this stage is to tag the tyres throughout the production process, with a view to uploading tyre data to a central and even web-based system. The UHF RFID technology is intended to establish a new level of transparency in tyre production and throughout the whole tyre life, which is key improving perceptions of the reliability and traceability of Chinese-produced tyres. Asked how long he thinks it will take for RFID to filter throughout the 300 million tyre Chinese market, Mr Yuan told T&A: “The projection is it shouldn’t take too long to filter through. In the Chinese philosophy when [one] decides something, you just do it.” The first stage of what Mesnac hopes will soon be a nation-wide roll out already underway trials. The crucial next stage is a national standardisation programme. In a market as large and diverse as the Chinese tyre business, this could be seen as something of a challenge. However, Mr Yuan’s decision to go down the RFID route carries a fair bit of weight in the Chinese market. In addition to being chairman of the board at Mesnac, Yuan Zhongxue is also a director of the Shandong Province Technical Center of Rubber Industry and Qingdao Municipal Major Laboratory of Industrial Information Technology. Even more importantly, from a lobbying perspective, the Mesnac chairman has a close working relationship with China Rubber Industry Association (CRIA) president, Ju Hong Zhen. Speaking to T&A, Mr Ju explained that the CRIA is in the process of determining the relevant RFID requirements in China, adding that the industry’s interest in this area demonstrates the attention it is giving to improving the quality of and confidence in Chinese produced tyres. Chinese manufacturer to RFID-tag car tyres too In March Pneu-Logic sold a five-digit quantity of chips to an as-yet unnamed European tyre manufacturer for evaluation purposes for three-month long commercial vehicle tyre trials in Germany, Italy and the UK. It is understood that most of the leading manufacturers in Europe are in or approaching similar positions, but the logic here had previously been that RFID would be most useful for truck casing tracking in the retreading process. The Mesnac deal sees movement within the Chinese industry to include RFID tags virtually across the board, and specifically including passenger car products. In order to demonstrate this the Mesnac stand at the China International Rubber & Tyre Industry (Qingdao) Exhibition featured a car tyre and a 4x4 tyre with up to six RFID tags built in. Pneu-Logic managing director Laren Yeomans, explained that this was for demonstration purposes only and, when it comes to mass production, only one chip will be used in each tyre. Teamwork Qingdao Mesnac Co., Ltd, was established in 2000, but in this short time the company has developed key relationships with organisations both at home and internationally. At home Mesnac is involved with a postdoctoral research programme that sees the company join hands with CRIA and the Shandong Rubber Industry Association in the establishment of the Qingdao Rubber and Tire Engineering College. In addition, Mesnac has established a number of international cooperation agreements in order to keep up with worldwide technological advances. According to company literature, the Chinese manufacturing systems supplier has cooperated with Matador Machinery and Konstrukta in Slovakia and US-based Farrel in relation to the development of informatization equipment and technology of radial tyres. Furthermore the Mesnac brochure reports that it has strategic partnerships with world-renowned suppliers such as Siemens, Rockwell and Mitsubishi on the subject of industrial automation production. Mesnac’s relationships with Slovakian companies Matador and Konstrukta are well established and have been going for some time. Both deals agreements were formalized in November 2002, with the Chinese company cooperating with Konstrukta in the production of a 15-70 degree steel ply cutting machine and inner-liner extrusion line. By March 2003 the company was working with Matador on an all-steel, three-drum, radial tyre building machine. By May 2004 this particularly cooperation had expanded to include the establishment of an international technical centre and the manufacture of hydraulic curing machines and radial passenger tyre building machines with Matador. The Matador-Mesnac Technical Centre was opened at the same time, in parallel with the Shandong Rubber & Tyre Technical Centre.
Continue ReadingNew Record as 530 Exhibitors Sign-up for Reifen 2008
As the Essen show celebrates its silver jubilee (Reifen 2008 will be the 25th time the leading tyre trade exhibition has taken place), show organisers are reporting that this year’s show will be the biggest yet. This means that Reifen 2008 will have a record number of exhibitors (530), with this year’s show breaking the 500 barrier for this first time. At the same time exhibition area has increased 16 per cent in comparison with the last Essen show two years ago. And furthermore, 65 per cent more international exhibitors (2006:57%) are taking stands at a show that has become Europe’s leading tyre trade exhibition.
Continue ReadingDon’t Mention the War
When online tyre retailer Blackcircles.com launched its new Meinreifen.de website for German consumers this month, you could be forgiven for interpreting the move as a strategically aggressive act. Hannover-based Delticom AG has been selling tyres online in Germany (and 29 other countries) for years and if its latest financial results are anything to go by, they have been making a rather good job of it. However, Tyres & Accessories has learnt that Blackcircles has been researching a possible entry into the German market for the last three years. So, could we be witnessing the start of an online tyre war?
Continue Reading80% of Nigerian Tyre Market Imported
An estimated 80 per cent the 3.3 million tyres used in Nigeria are imported, according to Dunlop Nigeria Plc, Nigeria’s only domestic tyre manufacturer. The company also said over 150 different brands of tyres are imported into the country from Europe and Asia, among others. Dunlop Nigeria Managing Director Mohammed Yinusa blamed the figures on […]
Continue ReadingPremium tyre manufacturers taking the lead in Russia
It is apparent that the Russian tyre market is one of the most vibrant and emerging in Europe. Not only is this market, with a volume of 40 million passenger car tyres (replacement market) among the largest of the world (and soon will even overtake the German tyre market, traditionally Europe’s strongest), the position of market players in the competitive environment that is the Russian tyre market is changing, and new players are taking over from the well-established. While Russian tyre manufacturers are struggling to position themselves and their products in the profitable branded market segments, companies such as Nokian Tyres and Continental, along with Bridgestone, Michelin and Goodyear continue to dominate the game with their premium and secondary tyre brands (e.g. Gislaved from Continental). These manufacturers are successful in increasing their relevance to the Russian tyre market to a large extent because they benefit from controlled distribution, as the example of Nokian shows.
Continue ReadingSameer’s Yana Tyres Struggling to Take Off
Sameer Africa recently raised its tyre prices by between four and six per cent, the Nairobi Nation reports. However, price increases are unlikely to help sales of the manufacturers Yana brand. Local news reports that stiff competition from cheap imports, especially from the Korea, Egypt and South Africa have left the company at a disadvantage, following the price increase. Kenya has no competitive advantage, and you can get any tyre you want from China at any price, managing director Eric Kimani told journalists. The influx of imported tyres from these destinations reportedly increased significantly in 2005, following the introduction of the East African Communitys (EAC) Common External Tariff (CET). Under the CET, the EAC member states (Kenya, Uganda and Tanzania) agreed to a common tax rate of 10 per cent on imports of new rubber tyres for buses and lorries. Initially, the import duty on tyres stood at between 25 and 35 per cent as a way of protecting local manufacturers.
Continue ReadingPlanned Bekaert Facility to Meet Russian Tyremakers’ Needs
Demand in Russia for the steel cord used to reinforce tyres is rising, and to meet this growing market Bekaert has taken the decision to invest in a new production facility in the country’s Lipetsk Special Economic Zone. More than 97 million euros will be invested in this project in a series of stages over the period 2008 to 2013, with the first stage scheduled to enter production in 2010. The Lipetsk region, about 400 kilometres south of Moscow, is strategically located close to the target markets, reports Bekaert, and features good logistics, ready access to energy supplies and a skilled labour force. Bekaert already has an established portfolio of customers in Russia, including tyre manufacturers. These Russian customers are currently being supplied by factories in Central Europe.
Continue ReadingFormer Goodyear Division Forms China Joint Venture
Veyance Technologies Inc., formerly Goodyear Tire & Rubber’s Engineered Products division, has entered into a joint venture with Ruiyuan Rubber and Plastics Co. Ltd. to make conveyor belts in Yanzhou, China. Veyance said the new entity, Shandong Aneng Conveyor Belt & Rubber Co. Ltd., is the largest manufacturer of conveyor belts in China, with 20 production lines producing more than 12 million square metres of conveyor belts each year.
Continue ReadingTwice as much in half the time – Giti’s plan to penetrate European tyre market in five years
Goodyear and Michelin penetration into Europe took a few decades, Bridgestone more than halved that, Hankook and Kumho did it in about 12 years, Giti Tire want to do it in five. The largest Chinese manufacturers are growing quickly, they have their sights set breaking into the US and Europe, and what’s more they plan to do it quicker than any company has before. Speaking to Tyres & Accessories, Dr Enki Tan predicted that Giti Tire will soon be known as the manufacturer to emerge from China. Giti is already a global scale operation, with 2007 sales totalling the best part of $2 billion. And while the fact that the group’s holding company is registered in Singapore means it can’t be officially be called a Chinese domiciled manufacturer, semantics can’t stop Giti from being the largest manufacturer of tyres in China. The company’s biggest production base is in Hefei, Anhui province (not a long way from where Continental recently announced it will build a Greenfield site of its own). The manufacturing complex here employs around 6400 staff and covers some 1.11 million square metres – only 350,000 m2 of which is currently covered. At the end of 2007 production totalled 34,000 passenger/light truck, 6500 truck and bus, and 4000 bias tyres per day.
Continue Reading“Smuggled” Tyres Trouble Pakistan Retail Market
Tyre retailers in Lahore, Pakistan have noticed a sharp increase in the number of “smuggled” tyres from India, China, and Dubai, causing putting locally produced brands at a disadvantage, according to The Post. One report suggested that the illegal business continues unchecked in the city, “perhaps in connivance with the law-enforcing agencies”. When asked, Bismillah Tyres at Ravioli Cinema told The Post that in earlier days, the profit margin was not as good but now, “we are doing a roaring business. It is because every other family has their own car,” he said.
Continue ReadingSentaida International Acquires ZT Wholesale
The Zisser Tire Company has entered into an agreement with Sentaida International for the purchase of the Zisser Tire Wholesale operation. The acquisition by Sentaida International will be limited to Zisser’s wholesale division, and the transaction is scheduled to be completed on November 21. Sentaida International, part of the China based Sentaida Group, is currently headquartered in Southern California and owns the private brands Sentaida and Delinte. It also acts as the agent for a number of brands in the US, including Linglong UHP.
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