A long article in China Tire Dealer outlines some of the issues facing tire dealers when they work with manufacturers, and how they sometimes seek to confuse those manufacturers. A large tire manufacturer can help a tire dealer by providing hardware, software, loans, warehouse storage, training and sometimes personnel. Small tire makers cannot offer this
Sales of two-wheeler tires in China are falling as motorcycle sales drop. In the first eight months of 2015, total sales from the 40 members of the CRIA two-wheeler panel were RMB 9926m, down by 10.37% in value. By category, bicycle tire sales was down by 3.36% to RMB222m. Electric bicycle tire sales were down
Shandong Fengyuan Tire Manufacturing Co (山东丰源轮胎制造股份有限公司 ) said it sold 305,000 tires in January 2016, almost three times the figure sold in Jan 2015. The company aims to sell at least 5.6m units in 2016, and hopes to sell 6m. The company originated as part of the Shandong Mining Group, and has a plan to
A survey of its readers by Tire World revealed that 65% of respondents believe 2016 will be a year of major consolidation in the Chinese tire industry. These will be driven by three factors: Over-capacity Tighter credit controls International business risks Data show that in the first 10 months of 2015, Chinese tire output fell
A long article in China Tire dealer outlines the situation in China’s tire industry. It calls for massive consolidation to eliminate over-capacity in the low-end tires. It recognizes that many Shandong-based tire makers are operating at a loss, but the continuing over-capacity is leading to further price cuts. The report says there are over 300
Further to our report in the 1 January edition, Pirelli’s engineers are becoming more deeply involved in the restructuring and management of Qingdao Yellow Sea. On 19 January the company held a General Assembly to officially announce a plan to set up a department of Industrial engineering and recruit an industrial engineering team. On 27
Rumours are flying in Shandong, ahead of the Spring Break. Two key rumours suggest more factory closures. First, Jia Cheng Rubber Industry Co., Ltd. (佳程橡胶工业有限公司) is reportedly facing bankruptcy. The company, also known as Cascen rubber makes tires and tubes for two-wheelers and employs more than 500 at its factory in Zaozhuang City. The boss
Chairman of Shandong Rubber Industry Association, Zhang Hongmin (张洪民) said 2015 has been the worst-ever year for Chinese tire exports. The vast majority of tire makers in Shandong Province are showing lower sales, lower exports and lower profits, he said. Zhang added that this slow-down has resulted in reduced process for the main raw materials:
Ahead of Chinese New year, Aeolus held a large meeting for over 1000 staff, workers and their families on 31 January. Company chairman Wang Feng (王锋) handed out some prizes and repeated his declaration that Aeolus is seeking world class technology and an international brand success. Wang’s speech was titled, “There are difficulties, there is
Following a severe downturn in August and September, monthly exports of Chinese tires to the United States may have hit bottom and appears to be recovering. However, sales in 2015 are likely to be significantly down on 2014. In the first nine months of 2015, exports of passenger car tires to the US were down
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