Under the wave of new energy vehicles, the domestic tire market is ushering in a profound change from “struggle for scale” to “struggle for quality.”
Recently, Dalian Goodyear’s radial car tire technology transformation project has officially completed its environmental protection acceptance announcement, which means that the project has entered the countdown to production, and also marks that Goodyear has dropped another important strategic piece in the domestic high-end silent tire market.
The total investment in this technical transformation is 39.97 million yuan. It is located in Goodyear’s existing main factory area in Pulandian District, Dalian City. It relies on the on-site transformation of the 3,230-square-meter original factory building without adding new land. It is fully in line with the industrial development ideas of green, low-carbon and revitalizing existing assets.
The pace of the project is very efficient. Construction officially started in January this year and was completed as scheduled in March.
By introducing advanced production equipment from FIT, Seeb and other industries, a new special production line for silent tires has been built. The core process is to add inner linings of sound insulation cotton to ordinary car tires, thereby upgrading the performance of conventional products to high-end silent tires, accurately matching the current consumption upgrade of passenger cars and the supporting needs of new energy vehicles for silent and comfortable tires.
Dalian Goodyear took the initiative to optimize the production capacity structure of technical transformation projects, instead of following the old path of extensive production expansion, and instead followed the development route of “improving quality and adjusting structure”.
The factory’s annual production capacity of ordinary car tires has been reasonably reduced from the original 15.08 million units to 13.48 million units. By freeing up production space and resources, an additional annual production capacity of 1.6 million silent cotton tires has been added; while the annual production capacity of 500,000 truck and bus tires remains unchanged.
It can be seen that Goodyear intends to reduce the production capacity of low-value-added conventional tires, concentrate resources on high-end silent tracks with high premiums and high market demand, and open up new profit space through optimization of production capacity structure.
As one of the earliest foreign tire giants to delve deeply into the Chinese market, Goodyear landed in Dalian to build a factory as early as 1994. It was later moved to the current location of the Bayan Industrial Zone in Pulandian District. The technical transformation project that passed the environmental protection acceptance is located here.
After more than 30 years of continuous expansion and capital investment, the Pulandian factory has now developed into an important global production and R&D base for Goodyear, with a cumulative investment of more than 1.6 billion US dollars in China. It also has the dual capabilities of large-scale manufacturing and cutting-edge tire technology research and development.
Currently, the penetration rate of new energy vehicles continues to rise, and car owners have significantly increased their comprehensive performance requirements for tires such as quietness, comfort, and shock absorption. High-end silent tires have become a new growth outlet for the industry. This technological transformation and upgrade of the Pulandian plant is a pragmatic layout for Goodyear to accurately understand market changes and occupy the high-end segmented track.
Having been deeply involved in the Chinese market for more than 30 years, Goodyear has always adhered to long-termism and improved its localized industrial layout step by step. Its investment layout in China has a clear hierarchy and numerous projects have been implemented.
In addition to the Dalian Pulandian plant, Goodyear established its Tianjin production base in 2002 and has been deeply involved in the North China market for many years. It is responsible for the production and regional supply of passenger tires, truck and bus tires; in 2021, it will complete the acquisition and integration of Cooper Tire and integrate the Qingdao Pingdu plant into its own production capacity system.
, to complement the industrial layout in Shandong and North China; in 2023, it will spend US$200 million to expand the second phase of the Kunshan factory to add high-performance passenger tire production capacity and consolidate its market position in East China; in recent years, it has also launched a large-scale photovoltaic green energy project in Kunshan to promote low-carbon production and intelligent manufacturing upgrades at the factory.
Coupled with the implementation of the Dalian Pulandian Silent Cotton Tire Technical Transformation, Goodyear has formed a multi-base coordinated development pattern in Dalian, Kunshan, Qingdao, and Tianjin. The product matrix covers ordinary civilian tires, high-end silent tires, truck and bus tires, professional off-road tires and other categories. The strategic intention of deeply cultivating China and focusing on China is clear at a glance.
The implementation of the technical transformation of the Goodyear project will fill the supply gap in the high-end silent and new energy tire market, increase the brand’s product premium in the original vehicle and after-sales replacement markets, and further consolidate its leading position in the northern tire industry.
At present, the tire industry is generally trapped in the dilemma of increasing foreign trade volume, falling prices, and pressure on profits. The extensive volume model is no longer sustainable.
The company has optimized its production capacity structure through technological transformation and focused on high-end tracks, providing a model for transformation from scale expansion to value enhancement for the industry.
