Chinese tire companies commented on the introduction of new tariffs in the US
One of the main topics in the world economy remains the new import duties in the US, and not so long ago, Chinese tire companies commented on the situation, some of which, in response to earlier introduced tariffs on tire imports from China to the American market, began to localize production in other countries.
In Sailun, it was noted that they will adhere to the strategy of globalizing the business, closely monitoring changes in international politics and trade, as well as maintaining contact with customers to minimize the negative impact of new duties. Currently, the company owns factories in China (in Qingdao, Weifang, Dongying, and Shenyang), Vietnam, and Cambodia, and is also building new production complexes in Mexico and Indonesia, while products are sold in more than 180 countries around the world.
In Linglong, it was stated that the company currently has two production bases outside of China - in Thailand and Serbia - and that "we will continue to enhance our competitiveness through flexible adjustments to supply chains, continuous optimization of costs and product lines, as well as taking measures to mitigate possible negative consequences for the business". The company added that they are monitoring changes in global trade, minimizing risks in cooperation with international clients, and are looking for a location to build their third factory abroad.
General Science, which has production in China, Thailand, and Cambodia, stated in its statement that it flexibly distributes supplies between different markets, and that the Chinese factory currently does not ship products to the US. In light of the introduction of new duties, the company intends to accelerate the selection of a location for building new factories outside of China, as well as "continue to promote the internationalization of the industry, meet market demand, and effectively respond to risks associated with barriers in global trade".
In Sentury, it was indicated that the factory in Morocco, which will start mass production of products in 2025, has significant competitive advantages in terms of import duties to the US compared to production in other countries, since, in particular, it can use convenient transportation routes for delivering tires. "Currently, demand has not changed, products are being shipped in the normal mode, production and company activities are stable", emphasized in Sentury.
Guizhou Tyre reported that in the first three quarters of 2024, revenue in any individual foreign country did not exceed 10% of the company's total revenue. "Guizhou Tyre has been actively working in the tire industry for many years. Products are sold in more than 140 countries around the world, and the company has certain opportunities to counter risks", the company stated. "We will continue to improve the efficiency of production and sales management and pay great attention to risk prevention, as well as take measures to realize our potential, expand our business, and minimize adverse consequences".
In Triangle, it was noted that the US accounts for less than 1% of the company's revenue. "Our foreign sales have a relatively balanced structure, and any changes in individual markets have a negligible impact on our performance", the company added.