China tire giants eye on Europe market

Several domestic tire producers and companies of related sectors have set up subsidiaries in the Europe.

Linglong Tire registered a wholly-owned subsidiary in Luxembourg, with registered capital of 12,000 euros, for investment and holdings businesses.

Linglong Tire has been negotiating with several countries for the location of its European subsidiary and hasn’t decided yet.

Zhejiang Hailide New Geo-material Co., Ltd. plans to cooperate with ASLI A/S to set up a joint venture, Hailide Fibers Europe A/S, in Denmark.

The joint venture, with registered capital of one million euros, to sell polyester chips, polyester filament, and tire cord fabric.

Greatoo Intelligent Equipment Co., Ltd. decides to invest 13.6 million euros to set up a wholly-owned subsidiary in Antwerp, Belgium.

The company has set up Greatoo (Europe) Holdings Co., Ltd. in Luxembourg, set up ODG in Frankford, Germany, and holds a stake in Germany-based OPS.

Many companies believe that setting up a subsidiary in Europe is the most direct and convenient way to expand market share and to boost business development in the continent.

According to a research report, as auto sales grow in Europe and oil price stabilizes, the tire market size in Europe is expected to reach 49 billion U.S. dollars by 2021.

The significant market potential in Europe has attracted increasing number of Chinese tire producers.