When you look at Tire+’s deliberate proximity to a premium car show such as Auto Guangzhou, the first thing that comes to mind is original equipment (OE). If we take a comparable European equivalent event such as the Geneva Motor Show as an example, most of the leading global tyre players as well as some of the larger up-and-coming brands use Geneva as a way of showcasing new technologies and products in order to generate additional OE tyre sales as well as the benefit of the enhanced ongoing tyre replacement sales that come with the so-called OE pull-through effect. While it is not as linear and transactional an equation as investment in a motor show equals OE contracts, it clearly is an important part of the corporate courtship ritual. Surprisingly, things are a little different in China.
Things are tough in China, but not every company is going under. While some are struggling others are expanding quickly. During the course of the recent Reifen China exhibition in Shanghai, Tyres & Accessories spoke with Qingdao Doublestar representatives and found our more about the company’s ambitious plans for rapid change despite the turbulent market conditions.
The 2015 edition of the China International Tire Expo opened on 9 September in Shanghai with around 350 exhibitors – the show’s most ever. The sustained growth represented by these numbers has led to the decision by organiser Reliable International Exhibition Services to transfer CITExpo to the Shanghai World Expo Exhibition and Convention Center (SWEECC), built in the centre of the 2010 Shanghai World Expo site. The show also boasts strong continuity, with around 80 per cent of 2014 exhibitors back in 2015, according to Reliable; in past years the organiser has come to expect a similar proportion of its customers booking their space for the following year during CITExpo.
Already possessing a convincing claim to being China’s biggest tyre show, the 13th CITExpo on 7-9 September 2015 will be the last at the Shanghai Everbright Convention & Exhibition Centre. Having expanded to include an extra hall in 2014, exhibition organiser, Reliable International Exhibition Services will, in 2016, transfer the show to the modern surroundings of the Shanghai World Expo Exhibition and Convention Center (SWEECC), built in the centre of the 2010 Shanghai World Expo site. The move highlights the strong growth of CITExpo, whose move to a modern, world-class facility caps many years of apparent exhibitor and visitor growth.
Chinese tyre-maker Shandong Deruibao Tire Co., Ltd. has entered “restructuring” proceedings, according to Chinese news sources. China News reported that on 7 February Deruibao Tire applied to its local authority, the Guangrao Economic Development Zone Management Committee Council, asking for the government to restructure the business – making a sale of the tyre manufacturing operation a distinct possibility.
Shandong Deruibao Tire Co., Ltd., produces passenger car radial tyres under two Chinese brands plus the slightly more anglicized Deruibo international export moniker. Deruibao is currently looking for international distribution partners having embarked on an export programme last March. Initially things began with the export of the firm’s truck and bus radials, but moving forward, the company hopes to do the same with passenger car radials in 2012.
The company currently manufactures 3 million all-steel tyres a year across 100 stock keeping units (SKUs), but the company began building a 24 million unit a year plant a couple of years ago. The firm already produces 13 patterns and 13 sizes of truck and bus radials.
Deruibotire (or Shandong Deribao Tire Co, Ltd), a tyre-maker in Guangrao County, a region of China’s Shandong Province has big new production plans in the offing in 2011. Visiting Brityrex 2010 in Manchester with a Chinese delegation, the company’s president Yuan Tingshu told Tyres & Accessories that, while the company is currently producing 3 million radial tyres per year, it is developing a production line to produce 24 million units in 2011.
Brityrex 2010 attracted a group of visitors from Shandong Province’s Guangrao County, which met with Tyres & Accessories on the Tuesday evening in Manchester’s Renaissance Hotel off Deansgate. The delegation included the president of Deruibotire (also known as Shandong Deribao Tire Co Ltd) Yuan Tingshu; Guangrao Shandong vice county magistrate Li Jianjun; and Bureau of Commerce of Guangrao County director and party secretary Zhu Hanqing. The delegation gave a presentation on the strengths of Guangrao County – a location described by Li as “an economic powerhouse within Shandong Province” and one of China’s major tyre and automotive accessory producing regions, as well as the host of China (Guangrao) International Rubber Tire & Auto Accessory Exhibition (ChinaGRTAE), which is due to be staged for the second time in 2011. Along with Tyres & Accessories and other representatives of the UK tyre trade, the delegation met with the NTDA’s Richard Edy and Peter Gaster, also of UK wholesaler Kings Road Tyres.