On June 28, the commissioning ceremony for the domestic semi-steel tire technical transformation project of General Science and the Thailand Phase II project was held on the same day. General Manager Cheng Jinyuan and General Manager of overseas company Gu Yahong unveiled the products in Wuxi, China and Rayong, Thailand respectively. This important moment marks the accelerated release of GS's high-performance, green semi-steel tire high-quality production capacity, and achieves a new leap in high-quality development.
It is understood that the company's Thailand Phase II project has a designed production capacity of 10 million semi-steel tires. After full production, it is expected to achieve an average annual revenue of 2.466 billion yuan and an average annual net profit of 459 million yuan; The domestic semi-steel tire technical transformation project optimized and upgraded part of the original full-steel tire production capacity, adding 6 million new tires. The two major projects started construction in September and November 2023 respectively, and lasted for 9 months and 6 months, achieving high efficiency guarantees, once again refreshing the industry speed and demonstrating GS's technical strength and team capabilities.
According to GS, the two major projects put into production this time focus on creating new energy, green and high-performance products of independent brands, focusing on sustainable material design, and achieving "high quality and low carbon". At the same time, adhering to the company's many years of manufacturing experience and technical strength, based on the successful operation of the first phase of the "dark light workshop", adopted world-class equipment, integrated multiple intelligent manufacturing technologies such as the Internet of Things, big data, and artificial intelligence, and built an industry-leading digital and green factory and are committed to improving the "human efficiency, energy efficiency, and product efficiency" of the entire process, which is of great significance to optimizing the company's production capacity layout and structure, and enhancing its core competitive advantages and profitability.
Global layout ushers in broad growth space
As the tire industry becomes more prosperous, especially as demand in the overseas tire market continues to rise, the tire industry maintains a momentum of rising export volume and price. According to statistics from the General Administration of Customs of China, China's rubber tire exports reached 3.63 million tons in the first five months of 2024, a year-on-year increase of 4.6%; the export value was 64.2 billion yuan, a year-on-year increase of 6.1%. Taking the United States, a major tire consumer, as an example, since 2024, the monthly tire imports in the United States have been at a relatively high level for the same period in history. In April, the number of passenger car tires imported into the United States increased by 7.71% year-on-year. At the same time, tire store sales continued to maintain a high year-on-year growth trend, and downstream demand for tires was relatively stable.
In light of the macro situation and industry development trends, in recent years, GS has formulated a "5X Strategic Plan", striving to achieve the internationalization goal of five major production bases at home and abroad by 2030. The company has seized the development opportunities of the "domestic and international dual circulation" and continued to promote internationalization, intelligence and green industrial upgrading. In 2019, the company built its first overseas production base in Thailand. With the Cambodian base reaching full production capacity in May this year, GS became the first tire company in China's tire industry to successfully achieve full production of its "dual overseas bases". The great success of going overseas has brought about a rapid increase in the company's performance. In the first quarter report of 2024, the company's net profit reached 153 million yuan, a year-on-year increase of 1270%, entering the "fast lane" of development.
Empowering the market to boost both production and sales of enterprises
Relying on the iteration and innovation of core technologies and products, GS adheres to its brand positioning and continuously improves its brand matrix. The company has opened up the international market with the advantages of its dual overseas bases. In recent years, it has continuously increased its overseas brand building, deepened cooperation with leading overseas customers, continuously enhanced channel expansion, improved the company's brand image and visibility, and expanded its market share.
The company continues to appear at internationally renowned exhibitions such as SEMA in the United States, Cologne in Germany, and Dubai, presenting itself on the world stage with high-tech and cutting-edge technologies, strengthening marketing activities and media publicity, and actively expanding into markets such as Europe, South America, Central Asia, and Southeast Asia through differentiated product strategies, which has not only enhanced overseas customers' in-depth understanding of the company's products, but also gained more new demands from overseas customers and the latest developments in cutting-edge markets. It is reported that the overseas bases of GS are currently experiencing strong production and sales. The daily output of semi-steel tires at the Thailand base has exceeded 20,000, and the daily output at the Cambodia base has exceeded 17,000, but overseas orders are still in short supply.
Green products lead the consumption in the market segments
According to the International Energy Agency's "Global Electric Vehicle Outlook 2024" report, global sales of new energy vehicles are expected to reach 17 million in 2024, accounting for more than one-fifth of global total vehicle sales. China's new energy vehicle sales will increase to around 10 million, accounting for about 45% of China's domestic vehicle sales.
GS continues to promote R&D innovation. The CELIMO GA5 was rated as a national green design product. The CELIMO GA8 and CHP8 urban SUV tires provide excellent wet handling and grip while ensuring outstanding quietness and comfort, giving users a more comfortable driving experience; The new FORTEZZA AS features a unique 3D groove design, providing excellent grip and anti-slip performance, effectively solving the user's travel pain points in rainy or snowy days; The new generation of silent sponge anti-puncture tire is the first to adopt patented technology, combined with a tailor-made polyurethane sponge to suppress cavity noise and achieve fast and automatic repair of punctures, providing high safety protection for new energy vehicle users. At the same time, the company's large-size products of 17 inches and above accounted for a rapid increase in proportion, continuously improving sales premium capabilities and brand influence.
It is reported that the tire industry is entering a stage where short-term, medium-term and long-term logics are all upward. In the short term, the external shocks faced by China's tire industry have been alleviated, and the industry's prosperity continues to rise; In the medium term, as Chinese tire companies accelerate their pace of "going out" and global factory layout has started, revenue is expected to continue to grow; In the long run, with the support of the development of new energy vehicles, Chinese tire brands will work together with Chinese car companies to complete the transformation from manufacturing attributes to brand attributes.
A relevant person in charge of GS said that the company will continue to implement the "5X Strategic Plan" and fully promote project construction, striving to achieve full production of the Thailand Phase II, Cambodia Phase II, 6 million semi-steel tire technical transformation projects in China, and 100,000 engineering tire technical transformation projects next year. In the future, the company will further promote the site selection and construction of new overseas production bases, provide global users with safer and greener products and services, and create greater value for customers.
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