Duratti to Expand into TBR Segment in Future
Shandong Duratti Rubber Corporation is planning to make a foray into TBR production in the future.
Duratti Sees Potential in TBR Segment
Duratti Group tyre producing subsidiary Shandong Duratti Rubber Corporation is planning to make a foray into TBR production in the future. Duratti has grown cautiously right from the beginning, and despite plans to foray in both the PCR and TBR segment, the company is currently limiting its growth plans to the PCR segment due to continued turmoil in the global market.
“The international tyre market has gone through tough times in last five years, therefore, instead of foraying into both segments, we prefer to put all our resources in developing our brand in PCR segment only,” said Luis, Export Director, Shandong Duratti Rubber Corporation Co. Ltd during the CITEXPO tyre show.
Currently, the Shandong based tyre producer manufactures PCR tyres under the ‘Rydanz’ brand name. Established in 2013, the company launched production in April 2014 and manufactures 10,000 PCR tyres each day.
When asked if the decision to stick to PCR tyres was connected to anti-dumping tariffs prevalent in many markets on TBR tyres, he expressed the view that the market for TBR tyres is still open, and there is room for growth even in markets that have imposed high anti-dumping tariffs on TBR tyres. “For example, despite high anti-dumping duties in various markets of South America, there are still sizes open for import,” he said. He further emphasised, “If you have the right products and customers, you can sell tyres anywhere.”
Duratti’s next foray is likely to be in TBR tyres in the next few years. “This will definitely be the next step but no timeline has been fixed as yet,” he emphasised.
The company has not forayed into too many segments as it is a young company, and the focus remains on brand building through quality products. “We have to produce better quality products, even better than other brands considering low claim rates, to establish ourselves in the highly competitive Chinese market.”
On expanding PCR capacity further, Luis said, “The last few years have been difficult for the Chinese tyre industry. Lots of companies have gone bankrupt as they have kept on doubling capacity every year, and once capacity had increased to a level which their sales could not match, they were forced to lower prices leading to a price war in the market.”
Duratti’s strategy is to grow step-by-step to keep the operation profitable. “Our installed PCR capacity is in between 12,000-14,000 tyres but we produce 10,000 pieces each day and export 70-80% of the production to Asia, Latin America, Africa and the Middle East market,” he said. The company believe it has enough PCR capacity for the next two years.
On pricing compared to other Chinese tyre brands, he said, “We are not highly priced but certainly not the cheapest. We are a profitable and healthy company and are not selling on losses by dropping our prices.” The company has plans to launch ‘Duratti’ as a hi-end brand in the future.
“国际轮胎市场度过了艰难的5年，因此与其同时进军两个领域，我们决定将资源放在发展我们的轿车子午胎品牌上。 ”山东多路驰橡胶股份有限公司出口总监Luis 在CITEXPO 展览会中表示 。