Top ten events in China's tire industry in 2022

In 2022, several big things happened in China's tire industry. These things will have a profound impact on the Chinese tire industry not only in 2022, but even in a long time.

1. Many tire factories stopped production and limited production

Since March, tire factories in Shanghai, Jiangsu, Shandong and other provinces have been affected by the epidemic prevention and faced the problem of stopping production and limiting production. Many enterprises are forced to adopt a "closed management" way to cope. However, regional and frequent production shutdowns and production restrictions have undoubtedly had a comprehensive impact on China's tire industry, becoming the first major event in China's tire industry in 2022. With China gradually relaxing the supervision of the epidemic at the end of 2022, the situation of tire companies stopping production and limiting production should be eased in 2023.

2. The Commission reopens its investigation

The General Court of the European Union issued a judgment revoking the European Commission's anti-dumping and countervailing duty order on Chinese truck and bus tires. With the European Commission in July once again on the Chinese production of truck and bus tire products anti-dumping and countervailing investigation, it is too early to say that Chinese tire companies won the trade friction. However, the victory in May seems to offer some hope to the Chinese tire industry. As the China Rubber Association stressed, through judicial relief for enterprises to recover overseas markets, it seems that Chinese tire enterprises can become a new idea to deal with anti-dumping and countervailing investigations.

3. Shandong promotes the development of advanced manufacturing

In November, Shandong Province announced the "Advanced Manufacturing Strong Provincial Action Plan (2022-2025)", emphasizing the promotion of high energy consumption industries, including the tire industry for high-quality development. As a large manufacturing province, the guiding documents of Shandong Province are of great significance. Under the promotion of the government, the transformation and upgrading of the tire industry is imminent. Whether it is active change or passive transformation, "high-quality development" has become a thing that Chinese tire companies have to face.

4. Sailun invested in a factory in Dongjiakou

In June, Cylun said it planned to invest 17.483 billion yuan to set up two factories in Dongjiakou, Qingdao. Among them, the investment of the tire factory is 15.181 billion yuan, involving 20 million sets of high-performance semi-steel radial tires, 10 million sets of high-performance all-steel radial tires, and 150,000 tons of OTR tire projects. The investment of 500,000 tons of functional new material plant is 2.302 billion yuan. The investment is unusual at a time when the entire tire industry is in a downturn. After the completion of the Dongjiakou plant, the annual production capacity of radial tires will exceed 110 million.

5. Linglong Serbia factory production of the first tire

In June, Linglong Serbia factory produced the first all-steel radial tire. This product with the pattern model Eplus-01 is the first tire produced by a Chinese tire company in Europe. According to Linglong, this tire is its ultra-low rolling resistance product, and the label in Europe has obtained an AA rating. The Serbian production base is the first tire factory operated by Chinese enterprises in Europe, which has played a demonstration role for Chinese tire enterprises in entering Europe.

6. Triangle signed the exclusive agent

In September, wholesale distribution company Stapleton's Tyre Services signed an agreement with Triangle Tire to acquire exclusive rights to Triangle brand semi-steel radial tires. It is now known to operate in England, Scotland and Wales. In recent years, Stapleton's has become the largest distributor of Triangle products in Europe. Triangle and Stapleton's signing, so that Chinese tire companies see the hope of entering the middle market in Europe, some Chinese-made tire products are expected to get rid of the "low-end product" label.

7. Sumitomo exits China truck and bus market

In August, Sumitomo Rubber announced the orderly termination of Dunlop brand truck and bus tire operations in the Chinese market. From 2023, the company will no longer produce and sell truck and bus tires for the Chinese market. From April 2024, Sumitomo Rubber (China) will no longer produce truck and bus tire products for overseas markets. Sumitomo Rubber's move shows how foreign tire brands have adjusted their business strategies as the Chinese tire market has changed.

8. China Strategic acquires Tianjin International Union

In April, Zhongce Rubber (Tianjin) officially opened, indicating that Zhongce completed the acquisition of OTR manufacturer Tianjin International Union. News reports at the time said that Zhongce Rubber was ready to invest 2.8 billion yuan for the Tianjin plant in three years to achieve an annual output of 400,000 tires (150,000 tons), 85,000 tons of high-end supporting materials, and sales value of 4 billion yuan. In September, Zhongce Tianjin plant held the opening ceremony of the expansion project. The move by Zhongce Rubber shows that although the entire industry is in a trough, the relatively well-funded head companies are still buying quality assets in the market and looking for opportunities to expand themselves.