Zhongce Rubber Group Co. Ltd. (ZC Rubber), China’s largest tyre maker and ranked number nine in the list of the top 75 global tyre manufacturers, is acquiring Tianjin United Tire & Rubber International Co. (Tutric), the manufacturer of Tianli tyres, for about RMB1.3 billion. The deal is to be completed on 1 April.
Zhongce is currently one of the largest suppliers of OTR tyres in the world, offering tyres for wheeled loaders, articulated and rigid dump trucks, port applications, underground mines, industrial and forklift operations. It adds that the acquisition of the Tutric “will further strengthen” the group offering to its customer base.
The company is creating a new wholly-owned subsidiary, Zhongce Rubber (Tianjin) Co. Ltd. to oversee day-to-day operations of the Tianli factory in the port city of Tianjin, China.
Henry Shen, President of the new Zhongce Rubber, adds that the acquisition provides ZC Rubber with a brand that produces tyres that range from 6 inches to 63 inches. The line has more than 2000 SKUs in off-highway applications.
Shen went on to add that the deal will expand ZC Rubber’s business to radial agricultural tyres and giant OTR tyres. It will also reinforce Zhongce’s current OTR business by expanding its radial OTR production capacity.
“Zhongce now has one of the largest ranges of agricultural and OTR tyres available to our customers, as we hope to provide them with a one-stop solution for all their off-highway tyres.”
“From this acquisition, Zhongce can now offer their customers an excellent range of radial agricultural, flotation, and implement tyres produced at the Tianjin factory along with access to giant OTR tyres which have been manufactured at the Tianjin factory for many years.”
Tutric’s factory at Tianjin was established in 1985 and covers an area of 480,000 sq m.
ZC Rubber Group President Shen Jinrong says the company’s vision is “to be the most respected” tyre manufacturer in the world.
Zhongce aims to become the second largest OTR factory in Asia. Following the acquisition, Zhongce Rubber will have a production base in Zhejiang, in Tianjin and in Thailand.