Shandong Yinbao to Expand its Tire Production in China

The renowned Chinese tire manufacturer plans to expand its production capacity with the addition of passenger car tires

China: One of the largest tire manufacturer of China, Shandong Yinbao Tire group, a subsidiary of Delun Rubberhas, has planned to expand its tire production capacity in Chuzhou, Anhui Province. The company was manufacturing truck tires at its manufacturing plant in the region and would start producing passenger car tires in coming years. The company has announced a total investment of about USD190 million for the expansion of its unit.

The phase one of investment would comprise of annual production capacity of nearly 3 million truck & bus tires along with 200,000 specialty tires. In the second phase of the project, the company would add a production capacity of 4 million passenger car tires per year.

Currently, the company is producing tires under various brand names such as GoldTyre, GoodTyre, Ginell, Yinbao and Taidelong in the region.

As per TechSci Research, the expansion investment plan by the Chinese multinational for producing passenger car tires would increase China’s market penetration in its tire market, where it ranks among the top players. Further, with the expansion in the production capacity, the company is likely to offer a wide variety of passenger car tires in the country consequent to which, it is forecast that the sale of tires by Shandong Yinbao would increase in China over coming five years.

According to a recent report published by TechSci Research, “China Tyre Market Forecast & 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. However, the replacement tire market is anticipated to attain higher market share by the end of forecast period.