Now one of the largest tyre-producing countries in the world, China has an indisputable influence on the direction of global tyre trade. The home of both fast-growing up-and-coming brands as well as a burgeoning domestic market, this tag chronicles China’s involvement with the tyre business.
Recent growth in European market sales across both the passenger car and radial truck tyre sectors has led to an upgrade of the Sailun’s tyre logistics strategy.
According to the company, in order to meet increased demand and to maintain service level agreements and delivery standards, Sailun has opened a new enhanced warehousing facility next to its Qingdao research, development, testing and manufacturing centre.
According to China’s National Bureau of Statistics, last year the country spent RMB 861 billion (£85.7 billion) on research and development, a figure equal to 1.83 per cent of its gross domestic product. One area of investment was work towards establishing around 100 ‘National Engineering Laboratories’ that will specialise in facilitating innovation in a range of industries. The interests of China’s tyre industry will be served by a dedicated laboratory, and in August 2011 China’s government appointed the Triangle Group the host company for a joint-funded facility, the National Engineering Laboratory for Radial Tire Design and Manufacturing Technologies (NEL). At the Triangle Group’s 2012 Global Automotive and Tire Industry Forum & Business Summit, held in Beijing on 11 April, NEL associate director Harry Gong explained the laboratory’s purpose in greater detail.
Nico Rosberg has stamped his name on the 2012 Formula One season with a dominant weekend in China, during which Pirelli says the Mercedes driver managed his allocation of the P Zero White medium tyre and P Zero Yellow soft tyre perfectly. With Ross Brawn behind him – as he was for teammate, Michael Schumacher’s seven Championship titles – Rosberg is now firmly marked out as a contender, claiming pole position by half a second, and taking his debut victory over 20 seconds ahead of the pursuing McLarens of Jensen Button and Lewis Hamilton. Both British drivers showed masterful use of pit stops and tyre compounds as Button, Hamilton and Mark Webber all passed defending champion Sebastian Vettel, who used a two-stop strategy, on fresher sets of P Zero White medium tyres.
Pirelli has taken its P Zero Yellow soft and P Zero White medium tyres to China for the forthcoming Grand Prix weekend, and it looks likely that the softer tyre will provide drivers with around 0.6 seconds per lap following Friday practice. Mercedes driver, Michael Schumacher used the P Zero Yellow to set the fastest time of the day during the second session, setting a time of 1:35:973 on his first flying lap. Pirelli said this display underlines the rapid warm-up of the soft compound.
Three of Yokohama Rubber Co., Ltd’s plants in Japan and China obtained JISHA (Japan Industrial Safety and Health Association) Standards Certification for Occupational Health and Safety Management System (OSHMS) in January 2012. They are the Onomichi plant, which makes tyres for construction and industrial vehicles in Japan, Hangzhou Yokohama Tire Co., Ltd. (passenger car tyres), and Suzhou Yokohama Tire Co., Ltd. (truck and bus tyres).
There are probably not too many experts on Greek mythology working in the tyre industry, but most people in the business are nevertheless familiar with the name Aeolus. This particular personage was revered by the ancient Greeks as ruler of the winds; more recently, the name has been adopted by a tyre maker whose profile in Europe is growing. First established in the mid-1960s, Chinese manufacturer Aeolus Tyre Co. Ltd. is today an important company within the government-owned conglomerate ChemChina (China National Chemical Corporation). In recent months the company has also merged with another tyre maker from within the ChemChina portfolio, Yellow Sea Rubber.
At present the Italian retreading market, following years of crisis, is experiencing a new birth. “From this and the coming years we expect that industry will recognise retreading in terms of its quality and its utility to the market,” comments Brenno Benaglia, vice-president of the Italian retreading association AIRP (Associazione Italiana Ricostruttori Pneumatici) and the European association Bipaver.
Goodride Tyres, manufactured by China’s Hangzhou Zhongce and distributed exclusively in the UK by Grouptyre, has agreed to sponsor rookie driver, Rob Smith in the AirAsia Renault Clio Cup, beginning 31 March – 1 April. Smith’s Clio will feature Goodride branding, alongside the logos of Grouptyre and its individual member companies, as he begins his tour round the country for one of the motorsport calendar’s most exciting race championships. The championship runs on control tyres supplied by Michelin, and supports the Dunlop MSA British Touring Car Championship.
On 28 March Continental celebrated the groundbreaking of not just one, but two tyre factories. Along with the new plant in the US state of South Carolina, reported yesterday by Tyrepress.com, the company broke ground on extensions to its passenger car factory in Hefei, China. The project calls for a 134 million euro investment, and this will allow for a doubling of capacity to eight million passenger car tyres per annum. Hefei plant output includes the ContiComfortContact 5, which it began producing last year, and ContiMaxContact 5, which entered production in 2012; both of these tyres have been tailored for the Chinese market.
At the end of 2011 Double Star Tires based in Qingdao, Shandong province, China announced plans to produce a range of multi-coloured tyres. According to local news reports, Double Star has dared to differ from the overwhelming trend towards manufacturing black tyres having developed a patented process to make tyres of any colour. This range has been appropriately dubbed “Rainbow” and is set for imminent market release.
During the first couple of months of 2012 Belgian firm Deldo has, like others active in the European tyre wholesaling scene, observed that this year may be different – more complicated – than the past couple of years. However the Antwerp-based wholesaler is not unduly concerned; during a recent visit, Deldo’s international sales and marketing manager Rutger Veerman discussed the company’s growth plans for 2012 and beyond.
Transense Technologies plc has announced that its trading division, IntelliSAW has entered into an exclusive distribution agreement with EL PE Engineers, headquartered in Vadodara, India. EL PE currently provides advanced systems technology and engineering support for the electric power industry.
As part of this agreement EL PE will provide exclusive distribution for IntelliSAW’s innovative wireless/passive temperature monitoring system in the Indian market. In return for exclusive terms EL PE has agreed to a minimum revenue target over the next two years of US$375,000.
Schaeffler Group has reported record 2011 sales of 10.7 billion euros and a 12 per cent increase in pre-tax profits to 1.7 billion euros. It is the first time in the company’s history that sales topped the 10 billion euro mark. Schaeffler Group directly owns a 49.9 per cent stake in Continental AG.
Commenting at the press conference where the news was announced, Schaeffler AG CEO Dr Juergen Geissinger said: “Following our success in 2010, we were able to further improve our earnings across the board in 2011. That demonstrates the dedicated commitment of our employees around the world. Our wide range of components and systems for the automotive and the industrial sectors puts us in a very good strategic position as a globally oriented company.”
This month US wholesaler Tire Group International celebrates 20 years in the business. On 3 March 1992 the Miami-based company opened its doors and began trading; TGI says its main objective since that day has been to offer its customers the entire spectrum of tyre sizes and patterns at reasonable price points, to build long-term relationships with customers and suppliers and to exceed their expectations every time they deal with TGI. For this reason, TGI says it has developed a very close relationship with all its partners around the world.
A year ago the newly appointed managing director of Euro-Tyre BV, Frank van Leeuwen, reported that the Netherlands-based wholesaler enjoyed growth in excess of 25 per cent in 2010. Yet the company, like many in the business, needed to remain on the ball in order to avoid the widespread tyre availability issues brought on by an improving economy. Now, 12 months later, Euro-Tyre says that while the problem of availability and supply lies in the past, the pattern of strong growth has continued.
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