In recent years, with the popularity of the domestic new energy vehicle industry, the market demand for semi-steel tires in China has been increasing, and the industry is also moving towards large-size and new energy. In China, a number of tens of billions of large-scale projects are planned to be implemented, and while domestic brands are growing by leaps and bounds, foreign brands are not far behind.
Recently, Bridgestone (China) Investment Co., Ltd. announced that it will continue to increase investment in China, focusing on strengthening the construction of production bases and increasing the proportion of high-performance passenger car tire production.
With an investment of 560 million in three years, Bridgestone is optimistic about China's PCR market
According to Bridgestone's official announcement, the group expects to invest a total of about 562 million yuan in the next three years.
Among them, as a key investment project, Bridgestone plans to invest US$26 million (about 190 million yuan) in Bridgestone (Wuxi) Tire Co., Ltd. in 2024 to expand the production capacity of high-end passenger car tires.
THE PLANT WILL INCREASE THE PRODUCTION OF TIRES WITH ENLITEN® TECHNOLOGY AND WILL PRODUCE 21-INCH LARGE RIM DIAMETER TIRES.
At the same time, the plant will also add a tire production line equipped with B-SILENT technology, and is expected to produce 2 million tires per year.
Augustin Pedroni, general manager and CEO of Bridgestone (China) Investment Co., Ltd., said that the company's strategic resources will focus on China's high-end passenger car tire market, which has greater growth potential, and focus on developing the advantages and competitiveness in these segments.
In addition to the Wuxi plant, Bridgestone Group has also increased its investment in Bridgestone (Tianjin) Tire Co., Ltd. By the end of 2023, Bridgestone (Tianjin) Tire Co., Ltd. has planned to invest 54.73 million yuan to renovate the equipment in the existing plant area, which is scheduled to be completed and put into operation in August 2025.
Foreign giants have increased their investment in China
According to incomplete statistics, in addition to Bridgestone, foreign giants such as Michelin, Goodyear, and Continental have also announced production expansions, with a total production capacity of more than 40 million. The specific project plan is as follows:
Among them, Cooper Tire announced in 2023 that it will expand its plant in Kunshan, Jiangsu Province, involving a total new investment of 200 million US dollars (about 1.37 billion yuan). The expansion plan is divided into two parts.
The existing production line at the Kunshan plant will be expanded to increase production capacity by 1.1 million tires and 2.6 million tires.
Michelin's Shenyang plant is currently carrying out a technical transformation project with a total investment of about 110 million yuan, and will build an annual output of 5 million silent tire production lines and an annual output of 700,000 self-sealing tire production lines, with a total production capacity of 5.7 million tires.
In addition, in November 2023, the foundation stone of the second phase of the Michelin Shanghai factory reconstruction and expansion project was laid, which is expected to be completed by the end of 2026, when the annual production capacity will be increased from 8.5 million to 9.5 million.
In November 2023, the production equipment of the fourth phase of the Continental Tire Hefei plant has been put into operation one after another, and will be gradually put into operation in the first quarter of 2024 according to the plan.
The fourth phase of Continental Tire's Hefei plant started in October 2022 and will have an annual output of 8 million radial tires for passenger cars, including 600,000 self-repairing tires and 400,000 silent tires.
After the completion of the fourth phase of the project, the overall annual production capacity of Continental's Hefei plant will reach a staggering 21.5 million passenger car tires, 600,000 self-repairing tires and 400,000 silent tires. The plant will also have an additional annual production capacity of 15 million tires.
In addition, Giti Tire and Hankook Tire are also actively deploying in China, upgrading or relocating factories to meet the needs of market development.