T I Res Report Title: China’s Tire Industry 2015-2018 Length: 200 pages / 250 tables, charts & diagrams Price: Single licence: GBP 2950 / € 3950 / US$ 4950 Publisher: Tire Industry Research Find out more: http://ChinaTireReport.com Your unique insight into China’s Tire Industry Learn about ❖❖ ❖❖ ❖❖ ❖❖ ❖❖ ❖❖ ❖❖ ❖❖ ❖❖ ❖❖ ❖❖ ❖❖ ❖❖ Tubeless truck tires Truck tire size changes Rim sizes and profitability Segmentation and profitability Government policies Legislation Land prices and their influence Case studies on Linglong and Triangle Company profiles Tire factories in China Expansion plans Capacity Operating rates Out Now! China’s Tire Industry 2015-2018 http://ChinaTireReport.com Probably the biggest question in the global tire industry today is this: How quickly will China move to high-tech tires? Currently there are only a very limited number of tire makers in China who make anything but low-tech, low added-value tires. If and when the majority of the hundreds of tire makers in the region move toward silica treads, low mass and other high technology, that will have implications both for global tire markets and upstream suppliers. The latest report from Tire Industry Research (TIRes) attempts to give comprehensive answers to that question. Unfortunately, there is no simple answer. The most simplistic answer is that the Chinese government and its quasi-governmental agency the China Rubber Industry Association (CRIA) want the transition to happen as quickly as possible – in the next three to five years. They are putting in place legislation to make it happen; top management at State-controlled companies are being told to make it happen. Banks are being instructed to make capital available only to tire makers who want to make it happen. A new strategy document from the CRIA outlines in 800 Tire Industry Research pages how the industry will develop until 2025. That document, published in October 2014 predicts annual growth rates of 7% until 2020 and 6% annually until 2025. It also addresses energy conservation; water usage; reducing reliance on fossil-fuel-derived materials; bio-sourcing of monomers and other aspects of the industry. The new TIRes report argues that it will be a lot more than 5 years before the bulk of China’s tire makers have switched to high-tech designs; silica-silane treads and advanced reinforcement systems. Putting a time-scale on that transition is impossible. It will depend on a series of individual decisions by powerful men who run some of the largest tire makers in China. China’s tire industry is about individuals and their relationships with other individuals. China’s Tire Industry 2015-2018 http://ChinaTireReport.com Who benefits from the report The report is of key interest to those in the tire industry supply chain, both as buyers from tire makers and sellers into tire manufacture. Supply Chain Professionals will benefit by learning about latest developments this key market. Tire makers in the developed world and those in China and other developing countries will learn how the industry is developing and the steps neeed to better understand the Chinese and international markets. Corporate management in premium tire makers will appreciate the in-depth yet broad-based overview of the industry - analysing strategies, distributiobn, pricing and segmentation. Contents Executive Summary Retreading Exports 03: What tire makers Key take-aways: Chapter 00 say Marketing and its place Key take-aways: Chapter 03 in China Nexen (Korean tire maker) Targetting good business German tire wholesaler partners in China Tech King Keep marketing function Aeolus in-house What do Chinese manageInternational companies ment think of you? Truck tire segment Yuelong How will China move to TOEE Haida Tyre high-tech tires? Shengtai Tire 01: Introduction Dongying-based tire maker Key take-aways: Chapter 01 Hangzhou Zhongce China’s place in the world GiTi operations in Europe China’s tire industry. Winning OE contracts Commercial vehicle markets Brand promotion Legislation On line sales Truck tire markets Winrun Retreads are low-quality Chapter 04: Vehicle Cultural differences markets Legislation Car markets Government policies Aim to become the world’s 05: Legislation largest tire producer Key take-aways: Chapter 05 Industry competition Tax and legislation Tire Industry Policy 02: China Tire industry Limits on energy, water Key take-aways: Chapter 02 and resources China’s tire industry Environmental standards: Current industry structure. Energy, water limits The main players: Energy Consumption Price weakness in China Water consumption International tire makers Enforcement Marketing databases Kumho and non-comLeveraging Price-Mix pliance Domestic tire makers Testing and compliance Over-Capacity Bias-play and capacity Land and speculation Tire Industry Policy (2010) Inventories and stocks Green Tire Specification Mergers and Acquisitions XXZB/LT-102-2014 Working conditions Tire Industry Access CondiWorkers earnings tions (2014) Standards + branding 06: Trade Tariffs Production quality Key take-aways: Chapter 06 Tread pattern database Why tariffs? New markets Low manufacturing costs Charts and diagrams 01: Introduction Map of China with Provinces Tire production in China 2013 Tire production worldwide 2013-2020 Car tire demand worldwide 2010-2035 Car tire demand (All) worldwide 2015 Car tire demand (RE) worldwide 2015 Car tire demand (OE) worldwide 2015 Truck tire demand (All) 2015 Truck tire demand (Repl.) 2015 Truck tire demand (OE) 2015 World’s top tire makers China’s top tire makers Passenger car tire price in China – v – Germany Brazil targets car, truck Impact will be significant CRIA welcomes tariffs Not just the United States India taxes Chinese-made tires Egyptian measures too Argentina lifts tariffs on TBR, PCR tires Columbia sets minimum prices Russia, Belarus, Kazakhstan to investigate 07: recycling Tire buyers and chassis engineers in vehicle makers and tire distribution will learn the key drivers in China and how to spot good potential partners. The report provides up-to-date information about legislation, capacity, expansion plans and Government Policy. Suppliers to the tire industry will learn about the development of domestic players and their international rivals. Doing business in China is never easy. This report gives insight about how to approach business deals with Chinese partners in China and elsewhere. Author David Shaw’s expertise has allowed him to meet with thought leaders around the world and bring their wisdom to a global audience. Environmental analysis Asset analysis R&D projects R&D spending Quality Certification Remuneration Full Financial analysis: Inventory analysis Development goals. Profitability Analysis Sensitivity analyses Specific energy consumption Equipment inventory New truck tire factory costs analysis Key take-aways: Chapter 07 Introduction. Environmental hazard. Chapter 10: Company Rubber recycling: profiles Legislation Aeolus Financial support Company Overview Capability History Rubber recycling industry. Revenue Analysis Shandong province. Tyre Factories Applications. Corporate Strategy Research developments Brand Reputation Second hand tires Strengths Companies: Threats Fuquan Rubber (Laiwu City, Technology And Innovation Shandong Province) CSR Achievements Chaoyang Long March 08: Linglong case Profile study Awards & Achievements Lingong case study Cheng Shin Tire Co. Consolidated income History Technology Factory 09: Triangle case Revenue Analysis study Strategy Employee count and profile Brand Reception Main Business Overview Maxxis As A Supplier 2003 – 2008: Innovations 2009 – present Sponsorships R&D Double Coin. Manufacturing advantages Company Overview Competitive disadvantages History Production flexibility Revenue Analysis Sales model and channels Tyre Factories Promotion – domestic Corporate Strategy Promotion – International Brand Reputation Raw materials analysis Strengths Technology And Innovation History Revenues Analysis Factory Corporate Strategy Brand Reputation R&D And Innovation Profile Federal Tire Corp (Taiwan) Profile Awards & Achievements GiTi Tire Corp History Revenue Analysis Factories Corporate Strategy Brand Reputation GITI Quality Inspection CSR Activities Guizhou Tire Corp. Profile Financials Outlook Hangzhou Zhongce Company Overview History Revenue Analysis Corporate Strategy Brand Reputation Strengths Threats Factory Jiangsu GST Profile Kenda Rubber History Revenue Analysis Factories Strategy R&D Triple-Helix Projects undertaken by Kenda Brand Reputation Kenda’s Awards LingLong Tire Company Company Overview History Revenue Analysis Factories Corporate Strategy Xingyuan Group Ltd R&D Initiatives History Brand Reputation Factory Strengths Corporate Strategy CSR Activities Brand Reputation Nankang Rubber Tire Co Strengths Profile R&D And Innovation Revenue Short profiles CSR Activities Beijing Capital Tire Awards Duratti Certifications Guilin Tire Sailun Hua Wu History Jixing Tire R&D Luntal (Luntai A) Factory Pearl River Tire Revenue Analysis Qingdao Yellow Sea: Corporate Strategy Shaanxi Yanchang Brand Reputation Shandong Bayi Certifications achieved Shandong Fengyuan Tire by Sailun Shandong Leling Weigel Sentaida (Qingdao Sentury) Shandong Yinbao Testing Shenhua – ITR Manufacturing Shenyang Peace Radial. New Factory in Thailand YongSheng group Shandong Hengfeng (Zhengxing) WuYi Profile Zhejiang Cotan Tyre Co Shandong Jinyu Group Other tire makers: Profile Shandong Wanda Tyre Co 11 – Business in China: practicalities Profile Key take-aways: Chapter 11 Summary: Chinese history Shengtai Group Confucius Profile Silk Road South China Tire Great Age of Discovery Profile Western attacks R&D Opium Wars Strategy & Brand Japanese atrocities Certifications Post-War period Awards & Recognition Working practices in China Triangle Group Working in China Company Overview Chinese businessman: History Western engineer: Revenue Analysis Western businessman Factory Western businessman: Corporate Strategy Chinese businessman: Brand Reputation Chinese businessman Innovation Chinese businessman R&D Initiatives Leadership and marketing CSR Tire production in China 2004-2015 Costs at top tire makers 04: Vehicle markets NR price development 2012-2015 Global brands car tire capacity in China 2013-2019 Car parc in China 2008 – 2016 China Passenger car tire prices 2011-2014 Light tire manufacturing capacity in China 2013 Vehicle sales in China 1995 – 2016 Fragmentation in China’s tire manufacturing sector Heavy tire price development in China 2011-2014 Monthly car registrations in China 2005 – 2014 Car, truck Tire production in China 2013 SUV, MPV dominate vehicle growth in car segment Light tire price development in China 2011-2014 Market shares of Intl car tire companies in China Truck sales in China 2005 – 2014 Light tire price development in UK 2011-2014 Tire size development in China 2009-2018 Car ownership by Province Light tire prices in China depends on rim size Regional concentration of tire production Price and rim diameters: China and Germany 05: Legislation Tire prices in China - 185/60R14 European tire makers in China: margins Specific Energy consumption targets Tire prices in China - 205/60R16 Top TBR tire makers in China 2014 – exports Specific Energy consumption by company Tire prices in China - 185/60R15 Top car tire makers in China 2014 – exports Environmental footprint of a tire-1 Tire prices in China - 225/45R17 Radialisation rate in China 2004 – 2013 Environmental footprint of a tire-2 Tire prices in China - 225/45R18 Car tire demand in China 2008 – 2016 Specific Water consumption targets Tire prices in China - 255/40R20 Tire prices in China - 245/55R19 03: What tire makers say Chapter 06: Trade Tariffs 02: China Tire industry situation China tire makers add limited value Export exposure - China car tire makers http://ChinaTireReport.com Tire Industry Research China’s Tire Industry 2015-2018 Tire Industry Research http://ChinaTireReport.com International brands Domestic brands/export Domestic brands/ domestic sales $35000 mill $30000 mill $31,725m $27,390m $25000 mill Qingdao Doublestar Industrial $878m Shandong Deruibo $992m Sailun Co. Ltd. $996m Guizhou Tyre Co. Ltd. $1068m Shandong Shengtai Tyre Co. $1090m Shandong Jinyu Tyre Co. $1139m $20000 mill Tianjin United Tire & Rubber Co. (TUTRIC) $112m Haoyou Tire co $120m Beijing Shouchuang Tire Co. $201m Shandong Bayi $201m Shandong TaiShan $211m Xinjiang Kunlun Tire Co. $244m Qingdao Sentury Tire Co $287m Chaoyang Long March Tyre Co. $316m Sichuan Haida Tyre Group Co. $366m Xuzhou Xugong Tyre Co. $394m Shandong Sangong Tyre Co. Ltd. $461m Shanxi Suanxi Tyre Co. Ltd. $571m South China Tire & Rubber Co. $574m Shandong Hengyu. $623m Shandong Wanda Tyre Co. $781m Jiangsu Tongyong Tire Ltd. $874m 158m units PCR/LT 88m units 132m units Sample charts 2013 total: 377m units A wide range of charts, tables and info boxes help describe the state of the 2013 total: market and its development. 100m units Aeolus Tyre $1408m Xingyuan Tyre $1557m $15000 mill Shandong Hengfeng Tyre Co. $1580m Double Coin Holdings $1800m 12m Shandong Linglong Rubber $1884m $10000 mill TBR units Triangle Group $2712m 35m units 53m units GITI Tire $3756m $5000 mill Hangzhou Zhongce Rubber $4529m $0 mill Bridgestone China 0 20 40 60 80 Tire production in China by manufacturer Fragmentation in China’s Tire industry 100 GB29449-2012 Tire type Other Sales/Mktg R&D Depreciation Capex Developed China Labour Other Ingredients Others Fabric Chemicals Fillers SR India Cost structure of tire manufacturers by region NR PCR production capacity in China by company Tables and info boxes All-steel radial ≤495 ≤14.5 Semi-steel radial ≤530 ≤15.53 Bias tire ≤645 ≤18.9 OTR ≤900 ≤26.4 * Energy is measured as kg coal equivalent per ton of tires; International conversion says 1 kg coal equivalent = 29.3 MJ Truck tire targets for 2020 Linglong financial data 2011-2013 Productivity of tire workers in China Linglong financial summary 2011-2013 China tire makers – gross profit margin comparison Truck tire targets for 2025 Foreword & Overview Linglong capacity utilisation Passenger car tire targets for 2020 How quickly will China move to highLinglong profitability by tire category CRIA ranking policy for tire makers tech tires? Linglong revenues per tire category Passenger car tire targets for 2025 Abbreviations: Linglong profitability per tire category Aims: Linglong cost price development – truck tires Specific articles of the Tire Industry Policy Chapter 01: Introduction Linglong Cost price development – car tires Aims: State-owned and private enterprises Linglong Cost price development – bias tires Definitions China radial tire production forecast Linglong tire production by tire category Supplementary definitions Main laws affecting China Tire sector Linglong sales by replacement and OE sector Minimum capacity limits according to Tire Industry Applicability Linglong – Main customers 2011-2013 Related Standards: Policy ( 轮胎产业政策 ) Linglong: domestic and overseas sales Threshold values for Grip, noise, RR China tire demand-2015 Linglong: export sales by country Organisations contributing to draft: Tire industry profitability China tire makers: profitability comparison Threshold Value for Company sales margins Green Tire Rolling Resistance GB/T 29042 Linglong-revenue per tire by tire category China vehicle demand 2015 Threshold Value for Linglong-costs of raw materials by material Approx tire demand in China Passenger Car Radial Tire Wet Grip Performance Evolution of raw materials costs at Linglong Tire price analysis in China Threshold Value for Mini and Light Duty Vehicle Tire Evolution of energy costs at Linglong Tire Markings: sizes and dimensions Wet Grip Performance Linglong-specific energy consumption Tyre load ratings (in kg max load per tyre) Threshold Value for Heavy Duty Vehicle Tire Wet Grip Linglong-operating costs development 2011-2013 OE fitment labels & extra performance markings Performance Linglong-Top suppliers 2011-2013 Proscribed raw materials Chapter 02: China Tire industry Linglong-Carbon Black consumption by grade Raw materials which should not be used in situation Linglong – inventory costs 2011-2013 China-made tires Top 10 car / Light truck tire makers in China by Linglong – Inventory costs of finished products Raw materials which should be limited in Chicapacity (2014) China Tire makers – Comparison of inventory costs na-made tires Analysing price and rim diameter Linglong-employee breakdown by speciality Raw materials which should be used in China-made Cooper-Chengshan summary Linglong-employee breakdown by Age Top 10 truck tire makers in China by capacity (2014) tires Linglong R&D expenses 2011-2013 Technical and Administrative Parameters for Green Global brands tire capacity in China Linglong-employee breakdown by qualification Tire Clean Production Selected China tire factories – capacity and Linglong – R&D priority projects Technical and Administrative Parameters for Green products Linglong: R&D projects with third party partners Tire Clean Production Tire factories in China (with 2-digit DoT codes) 1. Energy and Resources Consumption requirements Linglong – Machinery inventory Chapter 03: What tire makers say 2. Product Index for Technical Features Chapter 09: Case study – Triangle Cooper’s Asian Tech centre 3. Comprehensive Resources Utilisation Index Triangle consolidated income statement Premium manufacturer sees organic growth 4. Contaminant Index Triangle consolidated cash flow statement Online tire retailers in China 5. Process and Equipment Requirement Triangle : Key financial indicators 6. Clean Production Administration Chapter 04: Vehicle markets Triangle: financial performance - key figures Aims: Vehicle sales in China 2013-2014 Triangle – Staff employment and qualifications Applicability Tires per vehicle – China Triangle employment development 2011-2013 Overview Luxury car brands in China 2013 Triangle – major capacity investment projects Summary: China: top 100 best-selling sedans/ hatchbacks/ Triangle revenues by product stream Manufacturing technology coupés in the first half of 2014 Revenue by product category Energy and resource consumption China: Top 50 best-selling SUVs in the first half Triangle: Average price of products Environmental protection of 2014 Triangle revenues by domestic and export sales Safety and occupational health China vehicle forecasts Triangle – revenues by OE and replacement Test track in Dongying City China: Top 20 best-selling MPVs in the first-half channels of 2014 Triangle Production and capacity by product stream Chapter 06: Trade Tariffs Triangle main export countries by revenue Chapter 05: Legislation Anti-Dumping measures against the China Tire Triangle – main domestic customers Industry Role of the China Rubber Industries Association Triangle – main export customers (CRIA) A history of US trade tariffs: 2009 – 2012 Triangle – top OE customers Main policies affecting China Tire sector A history of US trade tariffs: 2013-2015 Triangle – top 5 customers Standards applicable to tire manufacture in China Preliminary countervailing duties on specific Triangle: main suppliers manufacturers China tire Standards (some in development) Triangle – raw materials costs Brazil sunset review timetable Access Conditions Triangle – raw material price evolution Car tire exports from China by company China Rubber Industry Development Strategy for Triangle: Environmental protection spend 2016 – 25 Chapter 07: recycling Triangle: fixed assets overview 《中国橡胶工业强国发展战略研究》 Access conditions for scrap tire industry Triangle: production machinery equipment list China radial tire production forecast Triangle Internal research projects Key Performance Indicators -Tire Industry Chapter 08 – case study – Linglong: Tire Industry Research China’s Tire Industry 2015-2018 Maximum GJ/ton energy per tire ton tires* Triangle – external cooperative research projects Triangle: R&D spending Triangle – operational standards in manufacturing Triangle – biggest customer Triangle : Remuneration of senior staff Triangle consolidated balance sheet Triangle consolidated income statement Triangle consolidated cash flow statement Triangle: company balance sheet Triangle: parent company income statement Triangle Cash Flow Statement Triangle: Inventory costs (as at 31 Dec 2013) Triangle – Costs of ongoing construction work Triangle – Main government grants Triangle inventory costs: China Tire makers – Accounts receivable comparison China Tire Makers: Inventory Turnover Analysis: Triangle – profitability analysis China Tire Makers – Profitability comparison Triangle – profitability by segment Triangle revenues by domestic and export sales Triangle China sales revenues by region Triangle – main export regions by revenue Triangle sales by brand Triangle – Off-take & Private brand customers Triangle: Operating costs summary Triangle operating costs – detailed Triangle: profitability by segment Triangle: profitability by domestic and export markets China Tire companies – Gross margin comparison Triangle: gross margin analysis – TBR Triangle: TBR Cost-revenue analysis b Triangle: TBR Cost-revenue analysis Triangle: PCR Gross margin analysis Triangle: PCR Cost-revenue analysis Triangle: PCR Cost-revenue analysis Triangle: PCR Cost-revenue analysis Triangle: Bias tire Gross margin analysis Triangle: Bias tire Cost-revenue analysis Triangle: Bias tire Cost-revenue analysis Triangle: Bias tires Cost-revenue analysis Triangle – sensitivity analysis selling price changes Triangle – sensitivity analysis raw materials China Tire companies – Key financial data comparison Triangle – costs summary Triangle – Administration costs summary Triangle: Income tax expense Triangle – other expenses Bias – v – radial performance comparison Triangle: domestically-sourced equipment list Triangle: Overseas-sourced equipment list Triangle TBR factory project costs Triangle: cost-benefit analysis of new truck tire factory Triangle – car tire project costs Triangle car tire project – imported equipment Triangle car tire plant – List of buildings Triangle: cost-benefit analysis of new Car tire factory http://ChinaTireReport.com http://ChinaTireReport.com Why you should buy this report Methodology It sets out the strengths and weaknesses of the domestic tire makers and their international rivals in the car segment, the truck segment and spots emerging opportunities in the tire sector. He has spent the last year talking to industry leaders and participants about China’s Tire Industry. He has presented to three conference in China in 2014 and met with dozens of executives, workers and government officials in Shandong, Shanghai and also in Europe and other parts of Asia. Anyone responsible for strategic planning in the tire industry and its extended supply chain needs to read this report. The key advantage of this report is the depth in which Shaw tackles every branch of the China tire business, from market shares to sales and distribution and upstream to the technology used in factories. A detailed analysis of top tire makers is included in the report, as well as listings of factories and data on segmentation and growth opportunities in SUV, Winter and other key segments . This report has been researched and written by David Shaw, recognised industry expert. This report leverages Shaw’s vast experience with the latest market data and insight into the world’s biggest producer of tires. Every day Shaw tracked the top Chinese and international information sources for new information, data and insight. Order Form To order, contact us directly or complete the order form below Mailing address: Tire Industry Research, 34 Marchmont Rd, Wallington, Surrey SM6 9NU United Kingdom Or complete the online order form at http://ChinaTire Report.com For more information call Izabella or David at Tire Industry Research on +44 208 647 1185 or email [email protected] China Tire Industry 2015-2018 EU VAT number Price electronic £ € $ 2,950 3,950* 4,950* electronic+hard copy Total (£/€/$) 3,100 4,100* 5,100* VAT**(automatically added for UK companies) electronic copy will be sent to the email address listed below on date of publication TOTAL (please include £/€/$) Please contact me about my information requirements PAYMENT DETAILS YOUR DETAILS Mr/Mrs/Dr/Other (please specify) First Name Initial (please tick as appropriate) Please find enclosed a cheque for £/€/$ made payable to Shaw Information Services Ltd Surname Please charge to my credit card Your job title Please invoice me (only orders accompanied by an official Please complete the details below. company purchase order or purchase order reference can be invoiced) Company PO number Department CREDIT CARD DETAILS (please tick as appropriate) Address Amex Town/city Visa Mastercard Card no. 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