ZC Rubber reported today that production at its plant in Hangzhou, China resumed on 10 February following a pause taken in response to concerns regarding coronavirus (COVID-19). The manufacturer of the Westlake, Goodride, Arisun and Chaoyang tyre brands says production is now at 70 per cent capacity and is expected to return to normal levels soon. Triangle Tyre says its production also restarted on 10 February.
As of 5 February 2020, the World Health Organization (WHO) reports that there have been 24,554 confirmed cases of coronavirus across 25 countries since the outbreak began on 23 January 2020. Governments all round the world are taking steps to contain the spread of the virus as well as to develop treatment, but China is bearing the brunt of it with 24,363 cases within its borders alone. As a result, the transport systems of at least 10 cities in the People’s Republic have been shut down and public gatherings are being discouraged. As a result, home-working rates have shot through the roof and there has been an inevitable impact on the manufacturing industry. Considering China is the world’s largest manufacturer of tyres by unit volume, what impact is the coronavirus having on the tyre industry?