In recent years, the demand for off-the-road tires has continued to grow. According to relevant research statistics, the scale of the global off-the-road tire market has shown a steady expansion trend. Driven by strong global demand, China's OTR tire market has continued to develop in recent years, and major tire companies have increased their investment in this field.
ZC Rubber acquired Tianjin factory
In March 2022, Zhongce Rubber acquired TUTRIC for US$200 million. In July of the same year, the company announced a plan to expand the plant, which included increasing annual production capacity of 111,400 tons of all-steel engineering tires, industrial tires and agricultural radial tires in the first phase.
ZC Rubber said it will reduce the existing annual production capacity of bias engineering tires by 16,500 tons. The second phase of the project will add 114,800 tons of all-steel engineering tires and agricultural tires per year. After the completion of the two phases of the project, the annual tire production capacity of the Tianjin base will reach 267,800 tons.
Linglong Tire invested in OTR tire
On August 9, 2024, Linglong Tire released an investment announcement for its overseas (Serbia) investment expansion project, with a total investment of approximately RMB 4.62 billion. After the project is completed, it will reach an annual production of 1.1 million sets of various high-performance radial tires, including 800,000 sets of all-steel radial tires, 50,000 sets of engineering radial tires, 150,000 sets of agricultural radial tires, 100,000 sets of retreaded tires, and 6,000 tons of liquid recycled rubber.
From the perspective of production capacity structure, the main investment products of Linglong's expansion project are OTR tires, including 50,000 sets of engineering radial tires and 150,000 sets of agricultural radial tires, demonstrating Linglong's determination to expand the off-road tire market.
In the past two years, Linglong has also disclosed its "3+3" global strategic plan for OTR tires. The tire manufacturer plans to plan OTR production capacity in three production bases in China and three production bases overseas.
Linglong Tire said it plans to complete the "3+3" industrial layout by 2030, and ultimately achieve a production capacity of 30,000 sets of all-steel giant tires, 470,000 sets of all-steel engineering tires, 270,000 sets of agricultural radial tires, 50,000 sets of bias agricultural tires, 200,000 sets of bias engineering tires, and 600,000 sets of other off-road tires. The budget for the "3+3" strategy is approximately 4.689 billion yuan. After full production capacity is reached, Linglong will be able to produce 330,900 tons of OTR products annually.
Sailun Group leads the industry
As a leader in the field of engineering tires, Sailun Group achieved sales of 4.204 billion yuan in 2023, ranking first in the industry.
Sailun Tire currently has factories in Qingdao and Weifang that produce 160,000 tons of off-highway tires annually, and 100,000 tons annually in Vietnam; the Weifang and Qingdao off-road tire projects reached full production at the end of 2023, and continued to increase production thereafter. Also under planning are a 37,000 ton/year off-road tire project in Indonesia and a 150,000 ton/year off-road tire project in Dongjiakou, Qingdao.
Aeolus 1.464 billion project officially announced
Aeolus announced on August 7, 2024 that it had reviewed and approved the "Proposal on company's implementation of the high-performance giant engineering radial tire capacity expansion and efficiency improvement project", and agreed that the company would implement the high-performance giant engineering radial tire capacity expansion and efficiency improvement project.
As another major investment of Aeolus Tire, the total investment of the project is 1.464 billion yuan, with a construction period of 24 months. After the project reaches full production, it is expected to add 20,000 giant engineering radial tire production capacity each year, with additional annual sales revenue of approximately 1.563 billion yuan. As the truck and bus tire market shrinks, Aeolus has identified OTR tires as the driving force for the company's future growth.
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