In 2023, China’s tyre industry experienced a number of significant changes among key personnel. Tyrepress China observes that the operations of foreign brands in China are relatively stable, with only Bridgestone China’s leaders having changed. However, several Chinese state-owned enterprises and listed companies have undergone significant personnel changes this year.
Recently, the authorities of Henan Province in China established a comprehensive cross-border e-commerce pilot zone in Jiaozuo City. Tyrepress China noted that as a local company in Jiaozuo, Aeolus would be guided to expand its cross-border e-commerce business.
On 3 August, 68 items of machinery and equipment of Aeolus were put up for auction online. Equipment auctioned included: setting machines and vulcanisation tanks, and the base price is 2.46 million yuan (about £268,000; €311,000).
Aeolus has set up two new subsidiaries in Chile and Indonesia to be responsible for tyre import and export and wholesale. Tyrepress China learned that the tyre manufacturer wants to “adapt to the needs of strategic planning and business development, promote the company’s exchanges and cooperation with the international market, continuously expand business fields, accelerate the process of internationalisation, and enhance international competitiveness.”
Doublestar, Guizhou Tyre, Linglong, Triangle, and Aeolus recently disclosed their semi-annual results forecasts. Doublestar was in the red in the first half of 2023. The other four tyre companies estimated that their performance would rise. Tyrepress China found that adjusting market and product structure became essential reasons for the net profit growth of several Chinese tyre companies. At the same time, the decline in raw material prices and shipping costs benefited tyre manufacturers in the first half of the year.
Aeolus’s first batch of 63-inch OTR tyres was shipped from the company’s Jiaozuo manufacturing base on 11 March. The specification model of this batch of tyres is 59/80R63. Aeolus said that these giant tyres were sent to key overseas markets. The manufacturer said that a giant tyre weighs nearly 6 tons with a diameter for more than 4 metres and is mainly used for mining dump trucks, around 400 tons.
On 19 January 2023, Aeolus stated that Wang Feng resigned from the role of general manager due to work needs. However, while he has left that position, Wang Feng remains chairman of Aeolus. On 5 December 2022, Wang Feng was appointed as the chairman of China National Tire & Rubber Co., Ltd. (CNRC), the controlling shareholder of Aeolus
At a dealer meeting held by Aeolus on 16 December 2022, Wang Feng delivered a speech as “Chairman of China National Tire & Rubber Co., Ltd. (CNRC) and Chairman of Aeolus”. Wang Feng emphasised that in 2021, the sales revenue of Aeolus, Prometeon Tyre Group S.r.l. (PTG), and Pirelli ranked fifth in the world and first in China. The sales revenue of Aeolus and PTG ranked among the top three in China’s domestic industry.
Recently, several tyre manufacturers have released recruitment information, which is not enough to be strong evidence that China’s tyre industry is gradually recovering. However, the recruitment information shows that some Chinese tyre companies have not hesitated in the challenging environment.
2022 has been a challenging year for the Chinese tyre industry. This year is coming to an end, but a feeling of anxiety is crossing regions and classes and spreads throughout the industry. From manufacturers to distributors, from vulcanisation workshop workers to corporate executives, many professionals are asking the question: Where is the future of China’s tyre industry?
On its 10 November board meeting, Aeolus approved a project with a total investment of 610 million yuan (about 73.12 million pounds, 82.93 million euros) at its manufacturing base in Jiaozuo, China. It is reported that the tyre company plans to increase the annual production capacity of 80,000 tyres through reconstruction, including giant tyres and engineering radial tyres. The construction period is expected to be 18 months.
Based on stock market reporting for the third quarter of 2022, the top nine Chinese listed tyre companies ranked by revenue are Sailun, Linglong, Triangle, Huayi (the holding company of Double Coin), Guizhou Tyre, Sentury, Aeolus, Jiangsu General, and Doublestar. (The leading Chinese tyre company according to Tyrepress global rankings is ZC Rubber (Hangzhou Zhongce), but it is not listed.) The figures show that Sailun has completed a meteoric rise this year to become the Chinese tyre industry’s stock market leader, with an income of more than 6 billion yuan in the quarter, putting it within reach of the global top 10 tyre manufacturers.
At the end of October, several listed companies, including Linglong, Triangle, Sailun, Aeolus, Jiangsu General, Guizhou Tyre (Advance), Doulestar and Sentury, released their operating results for the third quarter. In the third quarter, Linglong produced 17,015,900 tyres and sold 16,623,600 tyres, with a revenue of about 4.37 billion yuan (about 520 million pounds, 600 million euros) and a net profit of about 110 million yuan (about 13.1 million pounds, 15.22 million euros).