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The Chinese auto market, which has begun to slow down, is still the most valuable market for tire companies.
On January 24th, in Yuzui Industrial Park, Yuzui Town, Liangjiang New District, Chongqing, the first phase of Hankook Tire’s Chongqing plant was put into operation; one day after another, the northeastern town of Shenyang Economic and Technological Development Zone, thousands of miles away, was another tire industry giant, Michelin. The new factory also held the opening ceremony.
At present, China’s huge car ownership and stable new vehicle growth rate have caused tire companies to feel that they have insufficient capacity. In addition, sales of luxury vehicles in recent years have soared in the domestic market, and the market’s demand for high-performance tires has grown. Some tire brands have thus significantly expanded. Capacity, while improving the production of high-performance tires. Take the above two new tire factories as an example, their annual production capacity exceeds 10 million.
Hantai Chongqing Plant Locks Western Market
The first phase of Hankook Tire's third plant in China, the Chongqing Plant, was officially put into production last week and is currently planned to produce 800 tires per day. It is reported that the plant will be built in four phases with a total investment of 954 million U.S. dollars. It will be completed by the end of 2015. The total annual production capacity will reach 11.6 million pieces, and the annual sales will reach 1 billion U.S. dollars, with the exception of 1.6 million passenger and car tires. The rest are passenger car tires. Zhang Menggen, general manager of Chongqing Hantai Tire Co., Ltd., said that the second phase of the Chongqing plant will start construction in the second half of this year, and will first consider the related supporting businesses of the Changan Automobile Group.
Kim Lun, general manager of sales strategy for Hankook Tire's headquarters in China, told reporters that Hankook set up a factory in Chongqing, focusing on the Midwestern market, where China has a key development and consumption potential. As Chongqing Yufu Industrial Park is the location of the project of the “100 billion international automobile city†which is a key development in the Liangjiang New District, the automobile city is mainly based on famous automobile groups at home and abroad. Hankook Tire will use the resources of the Auto City to further expand its scope. Supporting cooperation of western automakers.
Hantai sales account for 60% of large-size tires
At present, Hankook has two production bases in Huai'an, Jiangsu Province, and Jiaxing, Zhejiang Province in eastern China. Jin Lun pointed out that last year Hankook's global production reached 95 million, of which 30 million were produced in China, accounting for 33% of the company's total annual production. After the completion of the fourth phase of the Chongqing plant in 2015, Hankook Tire's China plant will have an annual production capacity of 42 million pieces.
With the booming sales in the domestic luxury car market in the past two years, consumers’ demand for high-performance tires has grown significantly. Hankook Tire has continuously increased the research and development and promotion of high-end products, and its subsidiary, Wante S1evo2, has provided for the new BMW 3 Series. Support will be provided for the new Audi A6L in 2013. In 2012, the proportion of sales of large-sized tires with a size of more than 15 inches will increase to 60%. Currently, Hankook Tire's share in the Chinese market has exceeded 20%, while ultra-high performance tires (UHPT) accounted for 26% of sales.
Michelin's new factory invests 1.5 billion U.S. dollars
The Hankook and Chongqing plants are slightly different from the new factory in China. They are located in the northeastern town of Shenyang, thousands of miles away. The new Michelin Shenyang tire plant is Michelin's high-performance radial tire relocation and expansion project. The total investment of the new plant is close to 1.5 billion U.S. dollars, and it has introduced the world's most advanced technology, equipment and production processes. This is the company's largest investment project in China.
In the second half of last year, Wan Yi, who had been the president of Michelin China, told reporters that Michelin currently has a production base in Shanghai in addition to the old and new factories in Shenyang. The relocated Shenyang new plant is mainly engaged in the production of high performance, low rolling resistance green tires. Its production capacity will gradually increase with the progress of the project. The final annual production capacity will reach 10 million tires for passenger cars and light trucks, 1.8 million for truck and bus tires, and 295,000 for retreading trucks and passenger cars. After the Shenyang plant is fully put into operation and the tire production capacity of the Shanghai plant is added, the annual tire production capacity of Michelin in China will be expanded to 170,800,000 tires for passenger cars and light trucks and 1.8 million for truck and bus tires.
Michelin Aims at High Performance, Green Tire Market
This reporter learned that Michelin's new plant has three production lines, one is a semi-finished product line; one is a car tire production line, the main production of Michelin brand car radial tire, size is 15-19 inches, tire width is 195-275 mm; One is a truck and bus tire production line. Among them, high-performance tires are the mainstay of passenger cars and light truck tires. While maintaining the load-bearing and speed performance, the weight will be reduced by 10% to reduce rolling resistance and energy consumption. Card passenger car tires are all high-performance radial tires, and no tube tires Tire-based. Wan Nengyi told Nandu reporter that at present, the products of Michelin's new factory in Shenyang are basically only for the domestic market. In his view, the tire production capacity of the company's two factories has not yet met the needs of the Chinese market.
A responsible person of the Michelin brand and communication department pointed out that in recent years, the demand for tires by consumers has developed to a “large sizeâ€, which is also an important reason why tire companies have continuously increased the production capacity of high-performance tire products in recent years.