The OTR, industrial and ag tire segments are always evolving, not just in the U.S., but worldwide.
This evolution has captured the attention of many tire manufacturers as they continue to adjust to the changing environment.
While Goodyear Tire & Rubber Co. recently announced the sale of its OTR tire division to Yokohama Rubber Co. Ltd., other companies are seizing the opportunity to grow.
Zhongce Rubber Group Co. Ltd. (ZC Rubber), already one of the world’s largest OTR tire producers, is in growth mode right now with its Tianli line of OTR, industrial and ag tires.
During a presentation at its Tianjin, China, plant earlier this year, company executives told MTD and representatives from Edenton, N.C.-based Colony Tire Corp. about ZC Rubber's future growth plans.
In 2022, ZC Rubber acquired the maker of Tianli tires, Tianjin United Tire & Rubber International Co. Ltd. (Tutric).
The company created a wholly owned subsidiary, Zhongce Rubber (Tianjin) Co. Ltd., to oversee day-to-day operations of the Tutric factory, located in the port city of Tianjin, China.
Tutric was originally United Tire in the 1980s and had been selling a variety of tire lines in the U.S. since the 1990s.
According to Benjamin Lou, global OTR director of ZC Rubber, Tutric was China’s largest OTR tire exporter to the United States during the period prior to U.S. tariffs being placed on Chinese-produced OTR tires.
That acquisition allowed the company to produce tires ranging from six inches to 63 inches, with more than 2,000 SKUs.
Lou says the company is still in the test stage with its own 63-inch OTR tire, but is supplying up to 63-inch tires to the top 50 global construction machinery companies in China as of the first quarter of this year.
The Tianjin plant currently is producing 120,000 metric tons of products yearly - or 500,000 pieces, including tires, with some track products.
Lou says Tianjin is currently exporting 70% of its tires and noted that by the end of 2024, the company plans to have its Tianjin factory “carbon neutral.”
OTR tire sales represent 30% of all ZC Rubber’s total sales. Of that amount, about 8% is currently being sold in the U.S.
To ensure quality, the company is spending 3% to 4% of its revenue on research and development.
Heading up ZC Rubber’s sales operation in the U.S. for the past five years is Chan Phothisane, OTR national sales manager.
Based in Houston, Texas, Phothisane says the company is currently selling by container-load directly to large distributors.
Phothisane adds that ZC Rubber currently does not have a warehouse in the U.S. (The company’s two largest customers currently are Dunlap & Kyle and Colony Tire.)
“Our ideal customers are large wholesale tire companies or large commercial tire chains with large inventory space,” he says. “We will tailor our business approach according to how much business is in that region.”
ZC Rubber continues to improve its tires' quality and performance and is currently experiencing adjustment rates of well below 1%, according to Phothisane.
Being in growth mode, Phothisane is also looking to expand the company’s salesforce.
“In order to grow and become the fifth largest tire manufacturer in the world, we need manpower to cover the U.S. region.
“We believe that quality service is the key to keeping the customers happy. It is important to be in front of our dealers while also having inside sales support. Customer service response time is crucial. We are looking to hire outside sales positions for the aftermarket division.”
Currently, ZC Rubber is selling the Tianli brand for agriculture, construction, material handling, forestry and mining applications, as well as its Westlake brand in agriculture, construction, material handling, forestry and mining operations, says Phothisane.
