Goodyear to inflate passenger car tire production capacity in China
China: Goodyear is planning to
expand its production capacity of passenger cars tire at its Dalian plant in
China. The project is scheduled to start in 2016 and will be completed over a
five-year horizon with an increase of three million units in total output.
This investment is a part of long term strategy of the company to meet
the growing demand of high-value added tires in China and other Asia-Pacific
markets. The USD284 million project is expected to create approximately 250
jobs, when put into full operation.
The plant has been in operation since 2012, when Goodyear was forced to
relocate its plant from location within Dalian city to the Pulandian Gulf
Industrial Zone, as the earlier location was not having any further room for
expansion.
Goodyear is active in the region since 1994, when it acquired majority
share of Dalian General Rubber Factory. The factory already has an annual
manufacturing capacity of 10 million units of passenger car tires and half
million truck tires.
According
to a recent report published by TechSci
Research, “China
Tyre Market Forecast and Opportunities,
2020”, tire market in China is forecast to increase at over 11% CAGR during
2015-20. Increasing automobile sales, continuously expanding motor vehicle
fleet, increasing exports, ongoing developments in road infrastructure coupled
with innovations in tire technology are the major factors driving growth in
tire market. Segment wise, passenger car tires remain the most dominant market
segment followed by two-wheeler tire and commercial vehicle tire segment in
that order. In 2014, replacement and OEM segment held almost equal share in
China tire market.
As per TechSci Research, Goodyear’s expansion for
passenger car tire in China is anticipated to increase company’s share in
passenger car segment in China.