Dongyang Tire Enters the Foundation of Zhangjiagang Plant in China

Dongyang Tire Group invested 9.8 million US dollars Zhangjiagang factory on September 9 officially laid the foundation, will target high-end market, manufacturing high-performance tires.

The new plant is Toyo Tire's first plant in Asia outside of Japan. It plans to produce 2 million tires a year, and is expected to start production at the end of 2011.

Toyo Tyre Executive Chairman Kenzo Nakajima told the First Financial Daily reporter that tire companies all over the world have set up factories in China, but the tire companies that entered China before are Chinese-based low-cost advantages. However, the constant maturity of the Chinese automobile industry and the competition in China's tire market began to shift to qualitative competition.

He said that after the completion of the Zhangjiagang plant, Dongyang Tire will introduce the latest technology to manufacture high-performance tires and compete with other competitors who first entered the Chinese market in the high-end market.

According to statistics from the National Bureau of Statistics, China's tire market has grown rapidly since 2005. Except for the slight drop of 2.2% in 2008 due to the impact of the financial crisis, the three-year growth rate in 2006-2009 has reached 2-3% in 2009. It has grown by 19.9% ​​and the annual output has reached 655 million.

As early as 2005, the top ten global multinational tire companies have entered China. Currently, the top 10 international brand tire manufacturers have accounted for nearly half of the total domestic tire production and accounted for more than 70% of the overwhelming share of the Chinese passenger car market.