Chinese tire companies have gaining rewards from their overseas projects.
The overall tire cover output, exports and sales income of Qingdao Sentury Tire’s Thailand branch accounted for 23.91%, 26.97% and 23.59% of its total, respectively.
The tire output of Sailun Jinyu Group Co., Ltd.’s Vietnam branch totaled 3.88 million tires, accounting for 20.5% of its total; and the output of Shandong Linglong Tire Co., Ltd.’s Thailand plant reached 5.43 million tires, accounting for 21.3% of its total.
The contributions of overseas branches eased the impacts of the U.S. anti-dumping and anti-subsidy tariffs on China’s tire industry.
Chinese tire producer’s zeal for investment has been better than last year. Although there are no new projects, expansion and supplementary projects are plenty.
In addition, Shandong province approved Haohua Tire’s all-steel tire project with annual capacity of 2 million tires, which is expected to start construction in the near future.
Chinese tire producers are less interested in domestic investment, while their overseas investments are different.
The U.S. anti-dumping and anti-subsidy measures against tires from China and the good examples of Chinese tire producers’ overseas branch establishment encouraged more tire producers to the same, building overseas plants.
Last year, five overseas tire investment projects were launched by Chinese tire producers.
This year, their steps continue and the major projects include Sentury Tire’s U.S. project, Wanli Group’s U.S. project, Zhaoqing Sonny Tire’s Vietnam project, and Sailun Jinyu Group’s Vietnam all-steel tire expansion project.
Lately, it is reported that Prinx Chengshan (Shandong) Tire, Tianjin Wanda Tyre, and Shandong Huasheng Rubber are also planning to set up overseas plants.
In the second half of this year, China’s rubber machinery industry received more orders, largely contributed by Chinese tire producers’ overseas investment.
