During January 2021 more than 50 domestic Chinese tyre businesses announced plans to increase prices. And, according to Robert Ho, marketing officer at Comforser Tire Co. Ltd., we can expect still further prices increases in February and March.
While the challenges of the pandemic to the light vehicle markets are familiar due to the day-to-day experiences of people around Europe, commercial, industrial and agricultural markets experienced different levels of lockdown, as many companies in these sectors worked hard to reinforce supply chains. In the tyre wholesale sector, this meant distributors of products and services to these segments needed to stay strong to supply the rubber that kept countries rolling. Michael Rosenthal, marketing director of the UK and Ireland’s largest and most comprehensive distributor of off-highway tyre and wheel solutions, Kirkby Tyres, told Tyres & Accessories about the latest news from the Speke-based wholesaler.
Double Coin has expanded its distribution infrastructure in the USA with the addition of a new warehouse in Houston, Texas. The new facility, Double Coin’s largest warehouse in North America, began operations on 15 September 2020. It includes office space, 29 dock doors and two drive up ramps. According to the company, the warehouse will serve the growing demand for Double Coin’s comprehensive range of truck and OTR tyres.
Double Coin Tires engineers praised the benefits of Eastman’s Eastman Crystex Cure Pro insoluble sulphur alongside scientists from the chemicals manufacturer Eastman during a joint speech at the China Rubber Industry Association (CRIA) conference on 15 September. Around 200 professionals from tyre-related enterprises gathered at the conference to discuss the latest industry technologies and market status.
The second edition of the Tire+ exhibition, organised by China United Rubber Company, got underway today in Guangzhou, Guangdong Province China at the world-famous Canton show ground. The show runs in parallel with the large-scale Guangzhou Autoshow (itself a top three automotive event in China) as well as the China Essen Motor Show and continues until 19 November.
Prometeon Tyre Group’s recent appointment of Kirkby Tyres as its official wholesale partner for Pirelli truck & bus product is “a landmark in Kirkby’s history as with this agreement, this is Kirkby’s first appointment as a national distributor of a major tier-1 tyre brand”, according to Dave Dorrity, managing director of Kirkby Tyres.
Michelin has announced the sale of its 40 per cent equity in Double Coin (Anhui) Warrior Tire Co. Ltd. Specifically, as the tyre maker reported today, Huayi Group (Hong Kong) Co., Ltd. will purchase 30 per cent of the equity in the business held by Compagnie Financière Michelin SCmA, and Double Coin Tire Group Co., Ltd. will purchase the remaining ten per cent of the equity, currently held by Michelin (China) Investment Co. Ltd.
Huayi, which trades under the Double Coin brand name has established Huayi Tire Canada in Vancouver, British Columbia. According to reports, the location reduces delivery times for the firm’s truck and bus and OTR tyres.
As a tyre wholesaler specialising in commercial tyre segments, Kirkby Tyres has progressively expanded its range of OTR tyres and wheels; the company states that its range of radial and bias tyres for earthmovers and construction vehicles is now “enormous and varied”. The wholesaler has distribution partnerships with several rising manufacturers, such as Alliance, BKT, and Double Coin, which have supported Kirkby’s competitive pricing strategy.
UK wholesaler and specialist in commercial vehicle products Kirkby Tyres continues to leverage its exclusive distribution deals in order to deliver the right tyres to the UK’s evolving commercial vehicle segment. The Speke, Liverpool based company has exclusive distribution agreements with Double Coin, Sailun and Longmarch, and these relationships are allowing it to fulfil customer requirements. “We believe that long-standing business relationships are essential,” Kirkby’s spokesman told Tyres & Accessories. “It is through such relationships that we are able to offer our customers assurance of quality, continuity of supply and a full manufacturers’ warranty.”
China’s Ministry of Finance and Commerce (MOFCOM) has hit back at the US Department of Commerce’s (DOC) decision to preliminarily introduce anti-dumping tariffs of around 20 per cent on Chinese truck tyres exported to the US. Indeed MOFCOM called the ruling, which is in addition to roughly 20 per cent countervailing duties, “an abuse of trade measures” on Friday 2 September. “Chinese tyre companies strongly oppose the US’s abuse of trade measures,” ministry of commerce spokesperson told reports during a briefing in Beijing.
In 2015, the implementation of Sailun Plus, the Kirkby and Sailun TBR dealership network, was a huge step forward for both parties and something led to demonstrably strong sales growth for both the tyre wholesaler and the brand.
Under China’s ‘Belt and Road’ development strategy (Silk Road Economic Belt and the 21st-century Maritime Silk Road, to give its full name), excess production capacity within the country is being exported to locations within Eurasia, Asia and parts of Africa. An advantage of this policy for tyre makers is that setting up production facilities outside of China offers a means of avoiding the tariffs applied to Chinese-made tyres in numerous markets. Shanghai Huayi (Group) Company, majority owner of Shanghai Huayi Group Corporation Limited (the entity known until recently as Double Coin Holdings), signed a deal in May that will see it supply the North American and Southeast Asian markets with tyres produced at a brand new factory in Thailand.