Chinese tyre manufacturer Double Coin Holdings Ltd is considering building a plant outside China. It already has five tire plants in China, but building one overseas might ease the high export duties needed to sell their tyres in the US.
Last April, Double Coin stopped exporting tyres to the US due to the import duties of the US government implemented since 2014. The US Department of Commerce assigned the company 105.59% antidumping duties for OTR tyres less than 99cm.
Double Coin is now just selling their current inventory from their Los Angeles and Memphis plants and will sell no more if stocks run out.
The tyre company is considering US and Thailand as possible sites for expansion, says Liu Xunfe, chairman of Huayi Shanghai (Group) Co., the company that owns 66% of Double Coin. He gave no more details as to when they’re planning to construct the plant.
“That’s why we are considering a possibility for a tire plant in America, but it’s only considering, thinking,” Liu said. “There’s no decision.”
Aside from building a plant, Double Coin is also open to ventures or partnerships with US tyre companies.
“The point is, it depends whether you want to make the tire company stronger and expanding by doing some kind of joint venture,” Liu said.