Goodyear Set to Expand its Tire Factory in China

Goodyear breaks ground for expansion of its factory based in China

China: The Goodyear Tire & Rubber Co. has initiated USD485 million expansion for its tire factory in Pulandian, Dalian, China with its ceremony of breaking ground. Several top officials took part in the ceremony including the company’s President, Chief Executive Officer and Chairman Richard Kramer and deputy mayor of Dalian, China, Lu Lin.

Further, after the completion of the expansion by 2020, it is expected that the plant’s capacity will increase by around 5 million tires per year, to support the company to meet the growing demand for large-rim-diameter premium consumer tires in Asia Pacific region including China. Goodyear anticipates that tires having rim diameters of 17 inches or greater would capture around 60% of the replacement tire sales in China.

“This investment in our Pulandian factory speaks to our long-term strategy of pursuing sustainable growth in the Asia Pacific region and increasing Goodyear’s presence in high-value segments of the global tire market that are growing at rates above the total industry where we can capture the value of our brand,” said Richard Kramer, “The city of Dalian has been supportive of our developments here, and we look forward to continuing this fruitful partnership”, he further added.

As per TechSci Research, the expansion of the tire plant is anticipated to increase the company’s market penetration in the China tire market, further, the company would also be able to cater the growing demand of large-rim-diameter premium consumer tires efficiently in the Chinese market.

According to a recent report published by TechSci Research, “China Tyre Market Forecast & Opportunities, 2020”, during the last decade, China emerged as one of the leading economies worldwide in terms of GDP growth. The automotive industry, in particular, has grown at a tremendous pace owing to diverse factors such as increasing disposable income, rising standard of living and automobile export demand. This, in turn, has catalyzed the development of tire market in China in terms of both production as well as sales. China’s vehicle fleet size witnessed a radical increase during the past decade, which has further driven tire demand in the country. Ongoing development in both urban as well as rural pockets and significant improvement in road infrastructure have been driving the expansion of automobile and tire market.