Tyre makers compete for Chinese market
By Wang Xin (China Daily)
Updated: 2006-06-09 11:46 Attracted by a well-established industrial base and a favourable investment
environment, Kumho eventually decided upon its new investment location in
Changchun.
During the first China Jilin Northeast Asia Investment and Trade Exposition
held last year, Kumho Tyres clinched an investment agreement with the Changchun
High-tech Industrial Development Zone.
The project, covering an area of 230,000 square metres, is expected to
advance Kumho's expansion into the Chinese market.
On the other hand, it will also push forward the growth of the auto industry
of Jilin Province, and promote the revitalization of the traditional industrial
bases in Northeast China.
Official statistics show that China's tyre output accounts for around 9 per
cent of the world's total output.
Sales revenues from China's tyre industry reached 79.4 billion yuan (US$9.9
billion) in 2004, an increase of about 38 per cent compared with the previous
year.
And the top nine joint ventures involved in making tyres contributed an
estimated 60 million tyres.
That is why a number of overseas tyre makers such as Bridgestone, Michelin,
Goodyear, Yokohama Rubber, Sumitomo and Kumho Tyres, are competing to shift
their operations to the fast-growing market.
So far, Kumho Tyres has signed a letter of intention with the First
Automobile Works, providing the latter with tyres.
(For more biz stories, please visit Industry Updates)
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