Recently, at the 2024 Tire Industry Association OTR Tire Conference in the United States, the authoritative organization Smither made a report and analysis on the future development trends of the global OTR tire market.
Analysis points out that the global OTR tire market will expand at a compound annual growth rate of 4.9%. By 2029, the mining, construction and port tire industry, in particular, is expected to grow at an annual rate of 5.6%, with the Asia-Pacific region led by China becoming the "main driver" of this growth.
In fact, the tire industry has expanded OTR tire production capacity in the past year, including leading companies such as Zhongce, Sailun, Linglong, and Aeolus, which have continued to increase investment.
ZC Rubber invests 2.8 billion in three years
First, ZC Rubber acquired TUTRIC in 2022 and announced an investment of 2.8 billion yuan within three years to achieve an annual output of 400,000 tires (150,000 tons), 85,000 tons of high-end supporting materials, and a sales output value of 4 billion yuan, it will be built into the top three off-highway tire production plants in the world and the largest in Asia. Among them, in July last year, the agricultural radial tire and bias engineering tire workshop expansion project was officially completed.
Jilin Linglong implements "3+3" sub-strategy for off-highway tires
On December 19, 2023, the first engineering radial tire 16.00R25 of Jilin Linglong Tire‘s off-highway tire project rolled off the production line; on January 10, 2024, Linglong Tire announced that the first giant engineering radial tire 27.00R49 independently developed by the Jilin factory successfully rolled off the production line.
It is reported that the off-highway tire project of Jilin Linglong Tire can produce 140,000 sets of off-highway tires annually, including 10,000 sets of engineering radial giant tires and 130,000 sets of small and medium-sized engineering radial tires.
In order to cater to market demand, Linglong Tire has formulated a “3+3” sub-strategy for off-highway tires. In the company’s “7+5” strategic global layout, Linglong Tire has plans for off-highway tires in three domestic factories and three foreign factories to increase production capacity and achieve localized production, bringing new profit growth points to the company.
Sailun adds 70,100 tons of engineering tire project
In November 2023, Zhucheng Yongan Rubber Technology Co., Ltd., a subsidiary of Sailun Group, has filed for the "off-highway tire project with an annual output of 100,000 tons", and will add a 70,100-ton engineering tire project with a total investment of 556 million yuan. After the project reaches production, it can achieve sales revenue of 2 billion yuan and is expected to be completed in May 2024.
Aeolus announces investment of over 2.1 billion yuan
On December 4, 2023, Aeolus Tire Co., Ltd. has made its second environmental impact assessment announcement for the construction of the "High-performance giant engineering radial tire energy expansion and efficiency project". The project plans to add a production capacity of 20,000 giant engineering radial tires per year. It is located in the west factory area of Aeolus Tire, with a total investment of 1,497.05 million yuan.
In addition, Aeolus Tire is also investing 95.01 million yuan to build a project to improve the quality and efficiency of engineering radial tires for large-size wide-body dump trucks with an annual output of 30,930, and investing 612.19 million yuan to build an additional annual output of 80,000 giant and special engineering radial tires.
Long March's annual output of 100,000 sets of OTR tires rolls off the production line
In Chaoyang Long March, in 2023, the first engineering tire of its 100,000 sets of high-quality off-highway tire construction project rolled off the production line. The total investment of this project is 450 million yuan, covering a total area of 45 acres. The first phase of the project has a production capacity of 100,000 sets, and the estimated investment is 210 million yuan.
It can be said that the OTR tire project will become a new performance growth point for major tire companies in the future, and it will also be a reference for companies planning new tire projects.
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