Aeolus Discusses Position with Pirelli, Plans to Become Global Competitor - Tire Review Magazine

Aeolus Discusses Position with Pirelli, Plans to Become Global Competitor

Aeolus_Feature_50Years
Aeolus Tyre Co. celebrates 50 years at the Taiji gymnasium in Jiaozuo.

During its 50-year celebration in Jiaozuo, Chinese tiremaker Aeolus Tyre Co. discussed plans to reposition itself as a global tire leader and utilize its parent company China National Chemical Co.’s (ChemChina) takeover of Pirelli & C. SpA.

Aeolus kicked off the anniversary celebration with its 50 Anniversary Conference at the Taiji gymnasium and welcomed clients such as OEMs, wholesalers and tire dealers from more than 50 countries to be a part of the celebration.

“Fifty years have passed in an instant,” said Aelous Chairman Wang Feng. “The startup 50 years ago seems as fresh as yesterday. Where has the time gone? For an individual, 50 years is the time from which he can predict his future. For a couple, 50 years means they have loved and supported each other such long. For an organization or an enterprise, it mirrors half a century’s ups and downs through which it has voyaged through with fortitude and determination.”

The company has seen many ups and downs throughout the last year from successful market increases to the devaluation of the yaun and consumer tires being hit hard by U.S tariffs.

Aeolus’s domestic market is currently doing well. Its domestic replacement market is currently up 50% in the first half of 2015, said Guo Shuangxing, general manager of international sales and marketing for Aeolus. He added that the company plans to recover its total revenue by 2016.

Aeolus celebrates 50 years outside the gymnasium.
Aeolus celebrates 50 years outside the gymnasium.

The company’s domestic OE market is up to 70%, which the company plans to keep small and develop even more this year domestically. The company also announced it is looking to expand TBR and OTR tires in southeast Asia, South Asia, Africa and the Middle East as part of its global strategy.

Chairman Feng said he hopes to utilize the ChemChina/Pirelli deal to speed-up global integration and change bad impressions of Chinese tires and become a competitor in the global market. Improving China’s global tire value is the biggest challenge.

“Our vision is ‘World-class Quality, Globally-recognized Brand.’ Our medium-term goal is to lead the local businesses in quality,” Feng said. “We will fully utilize the opportunity now that ChemChina has become the largest shareholder of the Pirelli tire company. We will strive to make every customer comprehend Aeolus, connect with Aeolus, trust Aeolus, and approve of Aeolus.”

Feng added he is confident the company’s use of Pirelli will see development in the next three years. It still remains unknown how this combined effort between Aeolus and Pirelli will affect the medium truck tires business between Aeolus and Alliance Tire Group.

Aeolus celebrates 50 years outside the gymnasium.
Aeolus celebrates 50 years outside the gymnasium.

Aeolus also announced its plan to continue its effort to become a truly global brand and shift its PCR focus to Europe. Jason Rothstein, general manager for Aeolus North America, confirmed Aeolus is no longer sending passenger and light truck tires to the U.S. after it was hit with a tariff of more than 118% from the combined antidumping and countervailing duties on China manufactured tires.

“It hurts growth potential,” Rothstein said. “The U.S. is losing out on a major market opportunity.”

Rothstein added that the European market’s focus on quality and performance makes them a good target market to please, and aiming for a “conscious market” will allow Aeolus to do well. Aeolus’s PCR tires in Canada and Mexico continue to do well.

As Aeolus now looks at Europe as the company’s No. 1 market for PCR tires,  nothing has been confirmed about the possibility of building plants outside of China to produce PCR tires to send to the U.S. The company did confirm that they have been looking at Eastern Asia countries such as Thailand to build another plant, but have been looking for the past few years.

 

 

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