[Editor's note] On July 28, the company announced the official launch of the Hefei tyres. Up to now, tire giants including Bridgestone, Michelin, and Pirelli have ranked among the top 10 tire manufacturers in the world. Recently, all tire giants have indicated that they will increase investment in China and bet against the Chinese market. As of the end of 2006, there were 19 foreign-funded tire companies in China, and China’s tire production reached 280 million. It has become the world’s largest tire producer and the Chinese market accounts for 18% of the world’s total. Foreign companies such as Bridgestone, Hankook, Kumho, and Giti have all stated that they will target the first place in the Chinese market, that is, more than 20%, which means that the four foreign brands want to share 80% of the Chinese market. However, in the face of a huge market, Chinese domestic tire companies are still in a weak position. The total output and market coverage only accounted for 25% of the country, and the rest of the market share was divided by foreign brands.
It was rumored that the horse tires in China more than half a year had finally been built in China. On August 6, Hefei City Development and Reform Commission Industry Department told the reporter: “The German mainland brand tires have been built in Hefei and submitted to the National Development and Reform Commission for approval. There are basically no obstacles to the company's approval of the company's national tire approval. There was news at the end of August."
It is understood that commissioned by the National Development and Reform Commission, the China Petroleum and Chemical Industry Planning Institute will evaluate the technology, product solutions, comprehensive utilization of resources, land use, energy conservation, and social impact of the Continental Horse Brand Tire Project.
Up to now, tire giants including Bridgestone, Michelin, and Pirelli have ranked among the top 10 tire manufacturers in the world. Recently, all tire giants have indicated that they will increase investment in China and bet against the Chinese market.
First investment 150 million euros game China
On July 28, the horse brand tires announced the official launch of Hefei plant. The company's new office in Hefei will be fully responsible for the company's investment in Hefei.
It is understood that the Malaysian brand tire project has basically settled in Nangang Town, Hefei High-tech Zone, with an investment of 150 million euros. It will build an annual production capacity of 4.25 million passenger car radial tire projects. The project is scheduled to be completed in 2010 and is a horse brand tire investment in China. The first tire production base.
The factory is equipped with the most advanced tire production and environmental protection technologies. It mainly produces tires for passenger vehicles to meet the needs of the Chinese market for high-end passenger vehicle tires. In addition to the production lines for the preparation of plastics and semi-finished products, the project also includes construction of environmental protection facilities such as smelting hot gas biochemical treatment odor equipment and vulcanizing flue gas treatment equipment.
According to the plan, after the completion of the Continental Horse Brand Tire Project, the annual sales income will reach 1.87 billion yuan, and the investment profit rate will be as high as 31.9%. The economic benefits will be better.
Hefei City Development and Reform Commission, said the person in charge of the industry, a year ago, the horse brand tires and Hefei Hefei company negotiated to invest in Hefei, mainly to see Hefei's location advantages, resource optimization, human resources and government services, horse brand Investment in factories will also promote the development of the Anhui automobile industry.
Hefei automobile and rubber tire industry has a strong industrial foundation, and the industrial agglomeration effect is becoming increasingly apparent. The mainland horse brand tires project is positioned as mid-to-high end passenger car tires. After the mainland horse brand tires are completed and put into production, Hefei will be selected from horse brand and Jiatong. "Wheel Drive" became China's largest tire manufacturing site.
According to the Hefei Development and Reform Commission, in the negotiations with the Malaysian brand tires, the Malaysian brand tires indicated that there are further capital increase plans, which all require national approval, or wait until the approval of the project.
In order to meet the new factory's annual production capacity of 4 million pieces in the future, and the large demand for technology and production personnel, Klaus Luetzenkirchen, the human resources director of the Malaysian brand Tyre tyres, has recently begun to inspect the local colleges and universities in Hefei, hoping to do a good job through relevant channels. Human resources selection and employment.
Tire giants gamble on the Chinese market
With the finalization of the construction of the Malaysian brand tires in China, the top ten tire manufacturers in the world will land in China. Like major auto makers who have aggressively seized the market in China, foreign tire giants have been in no hurry and have pointed to the first position.
As of the end of 2006, there were 19 foreign-funded tire companies in China with 36 factories. In 2006, China's tire production reached 280 million, and sales reached more than 123.5 billion yuan. China has become the world's largest tire producer. The Chinese market accounts for 18% of the world's total. By 2010, the total demand for tires in the Chinese market will reach 300 million.
Foreign companies such as Bridgestone, Hankook, Kumho, and Giti have all stated that they will target the first place in the Chinese market, that is, more than 20%, which means that the four foreign brands want to share 80% of the Chinese market.
China’s huge market is even more capable of spurring the desire of giants to invest. Foreign giants have just passed this year and made promises. In early June, South Korea’s Kumho Asiana Group decided to add another radial tire production line to increase its original annual capacity of 7 million tires to 12 million to 13 million. At present, the second phase of capital increase construction has been completed from the originally scheduled completion of the end of 2009 to the end of June this year.
In late June, Goodyear officially announced that it will invest US$500 million to expand its production base in Dalian. According to the plan, Goodyear's new commercial vehicle tire production line will be introduced into China and its passenger car tire production line will be expanded.
On July 10, Pirelli said: "In the next two years, Pirelli will invest an additional 100 million U.S. dollars in China to increase the production capacity of tires in China (including trucks and cars) to 11 million by 2011. We will double the capacity of car tires. It will also increase truck tire production capacity. If it can achieve 11 million annual production in China, China will become Pirelli's second largest global market."
Hai Tong Securities analyst Liu Jin believes that as the world tire industry gradually shifts to developing countries such as China, developing countries will highlight more advantages in tire manufacturing. From the 2007 list of the world's top 75 tires, the three world tire giants Bridgestone, Michelin and Goodyear are still in the first group; China's top 16 tires further advance, such as Hangzhou Zhongce in 2006 sales growth Nearly 50%, for the first time, exceeded 1 billion U.S. dollars, reaching 1.08 billion U.S. dollars, ranking from 23rd to 14th, and the rankings of other dozen companies also rose. In this way, the total revenue of the top 16 tires in China exceeded the number four German mainland company in 2006.
However, in the face of a huge market, Chinese domestic tire companies are still in a weak position. The six major self-owned brand products recommended by the China Rubber Industry Association this year to the community include Wanli, Triangle, Delicatessen, Lucky, BCT, and Haida. The total production and market coverage only accounted for 25% of the country's total market share. Foreign brands divide up.