Shandong’s Response to Global Demand
In the first nine months of 2023, China exported over 460 million tyres, up by nearly 10% from 2022, signaling an increasing global demand. Shandong, the tyre production hub, plans to add over 30 million units in 2023 to meet this increase in orders.
Key Players’ Strategic Moves
Youdao Tyre aims to expand production by 2 million units due to a shortage of orders this year. Shandong Huasheng Rubber invests in an undisclosed capacity expansion project, evident from a 150-million-yuan investment and R&D laboratories. Jinyu Tyre re-enters the semi-steel tire market with a 3 million unit per year project in Vietnam. Fomax Tyre eyes the Cambodian market with a project set to produce 1.2 million all-steel and 8 million semi-steel tyres annually. Shandong Haohua Tyre invests $500 million in Vietnam, increasing capacity by 14.4 million sets.
Quality Wins in Shandong’s Tyre Renaissance
Shandong’s production surge responds to the “orders chasing production capacity” trend this year. Beyond taking opportunities due to inflation, the industry’s three-year restructuring eliminated outdated capacities. This allowed high-quality manufacturers to rise, improving export quality. Shandong’s strategic focus on high-performance tyres indicates a move to dominate the large-size market. Caution is advised to align sales growth with expanded production, avoiding setbacks in the industry’s positive course.
