Jinyu Tire Group hosted the groundbreaking ceremony of Jinyu (Vietnam) Tire Company Ltd’s 2 million tyre a year factory in Phuoc Dong Industrial Park, Tay Ninh Province, Vietnam on 18 June 2020. Local industrial park leaders as well as customer, supplier and construction representatives attended on the behalf of Jinyu Tire Group partners in light of the Covid pandemic
In the USA the United Steelworkers (USW) union has filed antidumping (AD) and countervailing duty (CVD) petitions on dumped and subsidized passenger vehicle and light truck (PVLT) tyres with the Department of Commerce and the International Trade Commission
Guizhou Tire recently broke ground on two new tyre production facilities near the firm’s headquarters in Guizhou, Guiyang province. According to Asian Rubber Journal reports, when operational, the first – a $307 million plant – is expected to generate nearly $426 million annually. Capacity is salted to be 3 million truck tyres a year.
It’s almost two years since we first heard of Guizhou Tyre Co. Ltd’s intention to establish a plant in Vietnam, and plans have been taking shape since then. On 4 March, the Chinese tyre maker’s Board of Directors approved the establishment of a new wholly-owned subsidiary.
Cooper Tire & Rubber Company is to form a joint venture with Sailun Vietnam Co, Ltd to build a 2 million capacity truck and bus radial manufacturing plant. Subject to closing and government approvals, the facility will be located near Ho Chi Minh City, Vietnam, at the site of Sailun Vietnam’s existing operations, which early in 2018 signed an offtake agreement to produce Roadmaster, Dean and Starfire brand tyres for Cooper. The new announcement represents the latest move in a series of cooperative moves between the two firms – Sailun Jinyu invested in joining Cooper in its GRT JV in September.
Visiting CITExpo in 2018 had the potential to be a gloomy affair. A trade show that has specifically targeted medium-sized tyre Chinese manufacturers as a gateway for raising global interest, the trading environment in major export markets in Europe and North America have not been the most hospitable, with tariffs or anti-dumping duties affecting various product segments. In the UK, we heard from a major Chinese truck tyre importer that business had effectively been put on hold with the announcement that the EU was imposing tariffs in May. Pressure had also been mounting domestically, as the Chinese government moved to bring a halt to production at factories it considered to be too polluting, which led to upstream supply chain problems, as raw materials suppliers to the tyre industry were among those affected.
Singapore-based Firenza’s truck and bus tyres are manufactured manufacturing facilities in both Vietnam and Thailand which incorporate “the very latest technological advancements in tyre building technology and design”, according to the company.
All Firenza commercial tyre patterns include a solid shoulder construction complete with a zero angled steel band that is designed to significantly reduce irregular wear whilst a unique tread groove arrangement effectively safeguards against casing damage and stone retention.
At the end of May, anti-Chinese truck tyre tariffs were implemented. They included nominal (as opposed to percentage) tariffs at levels that surprised many. As a result, supply shortages and challenges at distributors were predicted. Shuttering of some of the lowest cost Chinese tyremakers is also expected. However, speaking to affected firms during the recent Tire Cologne reveals that many are already prepared to source tyres elsewhere. Indeed, the largest manufacturers have been off-shoring for some time. As a result, virtually all the leading Chinese tyre manufacturers already have non-Chinese tyre production in place. Let’s take a look at who’s got what.
Vietnamese tyre exports were worth US$920 million in 2017, up 44.2 per cent from 2016. Meanwhile, local tyre production enjoyed a trade surplus of $564 million in 2017, doubling the amount gained in the previous year.
Contract tyre supplier Firenza showcased five of the firm’s most popular ranges from car through to truck tyres.
Under a new multi-year manufacturing offtake agreement, the Sailun tyre plant in Vietnam will produce truck and bus radial (TBR) tyres for Cooper Tire & Rubber. Tyres produced for Cooper in the Sailun Vietnam Co., Ltd. plant will be manufactured under the Roadmaster, Dean and Starfire brand names and be sold in global markets. Cooper says the offtake agreement gives it a “third global source of TBR tyre production to meet growing customer needs.”
Vietnam Rubber Group (VRG), a state-owned business and country’s largest rubber producer/exporter, is scheduled to launch an initial public offering (IPO) on 2 February 2018 with shares being listed on the Ho Chi Minh Stock Exchange in June or July.
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