Overseas enterprises have a significant position, and domestic leading enterprises have developed rapidly

(1) Global and China's off-highway tire production and sales are booming

Because off-highway tires are a segment of the tire market, and there are many varieties involved, and the company discloses less information, the industry lacks special statistical data on the supply of off-highway tires as a whole market. However, from the prospectus of Haian Rubber, we can see that the production of engineering tires and all-steel giant tires in off-highway tires has a rapid development. With the acceleration of the world's industrialization process, the global production of engineered tires continues to rise. Global off-highway tire engineering tire production basically maintained an upward trend, from 100 million in 2016 to 340 million in 2021, with a compound annual growth rate of 27.73%, according to Frost Sullivan, 2026, global engineering tire production will further increase to 500 million.

In the vigorous development of the global steel giant tire, China is expected to maintain a high growth rate and increase the global market share. Compared with giant bias tires, giant all-steel radial tires have lower heat generation due to structural differences, effectively reducing tread and shoulder delamination, and their service life is more than 2 times that of giant bias tires, greatly improving the service life of tires. Due to the advantages of the structural design of the giant all-steel radial tire, the product refurbishment rate is higher than that of the giant bias tire, and the giant all-steel radial tire is lighter in weight, lower in rolling resistance, more fuel saving and environmental protection, and can obtain better economic benefits, and the all-steel giant tire gradually replaces the bias giant tire, and the output rises rapidly. According to Frost and Sullivan, in terms of output, the global market size of all steel giant tires increased from 163,000 in 2016 to 192,000 in 2021, with a compound annual growth rate of 3.33%, and the market continues to be in short supply. The size of China's all-steel giant tire market increased from 12,000 in 2016 to 26,000 in 2022, with a compound annual growth rate of 13.92%.

(2) Overseas giants occupy a dominant position, and domestic enterprises are growing rapidly

Due to the complex application road conditions and difficult production, the supply of global off-highway tires mainly comes from overseas tire companies. Among them, Bridgestone, Michelin, Goodyear and other enterprises led. In the whole steel giant tire segment, Michelin, Bridgestone, Goodyear three giant enterprises global market share maintained at more than 85%. We sorted out the production capacity of off-highway tires of overseas tire companies. Due to the limitations of the data, we make the following explanations for this data: (1) The data comes from the Tire Business in the United States, which sorted out the number of factories of some tire companies in the world, the product types of each factory, the production capacity of each factory, etc., from which we sorted out the production capacity information related to off-highway tires. (2) We divide the factories related to off-highway tires into two types: the first type only produces off-highway tires (type 1), the second type produces off-highway tires and other tires (type 2), and the sum of the capacity of the first two types of factories is type 3. "Tire Business" does not separately disclose the production capacity of off-road tires in Type 2 factories, so the range of enterprise off-road tire production capacity should be between Type 1 and Type 3. (3) Because the weight difference of a single tire of off-highway tires may be large, the capacity units disclosed by each enterprise are not consistent (tons or strips), so we have two types of unit calibers in statistics, and the two are listed in parallel.

Due to data limitations, "Tire Business" did not disclose the off-highway tire production capacity of Type 2 factories, so we cannot analyze or compare the entire off-highway tire production capacity of enterprises, but we can analyze and compare the production capacity of type 1. We would like to emphasize that the Type 1 capacity is not the total capacity of the company's off-highway tires, but the total capacity of the plant that only produces off-highway tires. From the results of our statistics, the three global tire giants Michelin, Bridgestone and Goodyear all have pure off-highway tire factories (Type 1), Michelin's pure off-highway tire factory capacity of 138,200 tons/year, Bridgestone's 159,300 tons/year + 1.5 million/year, Goodyear's 30,000 / year. Yokohama Japan also has more pure off-highway plant capacity, but it contains a higher percentage of agricultural off-highway tires than Michelin and Bridgestone.

Michelin: Founded in 1889, Michelin has developed innovative technologies in off-road tires. Michelin is a leading company in the all-steel giant tire, and in 2001 Michelin launched the first 63 inch construction machinery tire. In 2018, Michelin completed the acquisition of the Canadian Camso Group, which by 2018 had taken a leading position in "the market for rubber tracks for agricultural equipment and snowmobiles" and "the market for solid and bias tires for material handling equipment assembly". In the "small infrastructure equipment assembly of track and needed tire solutions" market, the top three, net sales reached $1 billion. The acquisition of Camo Speed further helps Michelin lead the non-road tire market. Michelin has 51 factories in 18 countries or regions on 5 continents, of which the production of off-highway tires is mainly located in the United States and France. Bridgestone: Bridgestone is headquartered in Japan. Bridgestone operates 48 plants in 18 countries on five continents, seven of which specialize in off-highway tires, including three in Japan, two in the United States, one in Spain and one in Thailand.