Goodyear 'going to continue to win in China'

Tire Review - During Goodyear Tire & Rubber Co.'s Mar. 22 investor day, Asia Pacific president Pierre Cohade reported that the company's newest plant in China, its Pulandian facility, has commenced production.

Speaking on the plant that in a couple of years will completely replace Goodyear’s existing Dalian factory, where maximum possible production capacity has already been reached, Cohade confirmed "the factory is just starting up, we made the first tyre last month."

Goodyear states that $700 million has been invested in the Pulandian factory and relocation project – admittedly $200 million more than the initial figure announced in 2008. However, the tiremaker points out this involves expanding consumer tire capacity beyond its original scope.

The current investment supports growth in China through to 2015, Goodyear adds. Management from Dalian transferred to the 778,500-square-meter Pulandian facility in July 2010 to be on site during the final construction work and equipment installation, and the first 104 workers – including 70 that transferred from Dalian – arrived at the new plant on Nov. 17, 2010, and set about getting ready for the start of production in February 2011.

Cohade outlined the Pulandian plant’s output: "It will eventually ramp up to a capacity of 10 million tires, consumer tires. It will also enable us to start participating in the so profitable commercial segment in China by providing us tyres for buses and trucks, about a million tires per year." This entry into manufacturing for China’s commercial vehicle market is an important step for Goodyear; the tiremaker estimates the radial commercial tire sector there will grow 13% each year through to 2010. All in all, Goodyear anticipates growing its tire production from six million units (all consumer tires) in 2010 to 8.2 million in 2013 and 11.6 million in 2015; commercial vehicle tires will account for a growing minority of these last two figures. 

"China is a country of double-digit growth," Cohade continued. "Double-digit in the consumer segment, double-digit in the commercial segment, in both OE as well as replacement. And this industry growth, combined with our forthcoming participation in the commercial segment, combined with the momentum that we have built, is resulting in Goodyear’s business in China – currently about $300 million in 2010 – doubling by 2013 and more beyond. We have the product, we have the brand, we have the team, we have the distribution network. Goodyear is going to continue to win in China."