DONGYING, China — Shandong Yongtai Group Co. Ltd., one of China's largest tire makers, entered court-ordered administration on July 16 as the company faces a variety of legal issues.
The company, producer of the Durun and Goldway brands, was considered the 11th-largest tire maker in China and 31st worldwide in 2016, based on sales of $678 million. The firm's sales had fallen three years in a row after peaking at $1 billion in 2013, according to Tire Business' Top 75 tire makers' rankings.
The company has not published 2017 results.
The Jinan, China, office of globally active law firm Dentons Group has been appointed Yongtai's administrator by the local court.
According to a document published by Shandong Dongying Intermediate People's Court on Aug. 4, the first creditors' meeting will be held on Oct. 15.
Yongtai was set up in 1996 in Dongying, Shandong, province. It reportedly has annual capacity of 1.5 million truck and bus tires and 6 million passenger tires, according to various sources.
The company also has been the sole supplier of race tires to British race tire distributor DMACK Ltd. since 2011 for various rallying series, including the World Rally Championship.
In 2016, Carlisle, England-based DMack said it was planning to build its own plant in the United Kingdom, but to date nothing has come of that announcement.
The company's official website was inaccessible as of Aug. 21.
According to an Aug. 14 announcement by local procuratorate, Yongtai recently was prosecuted for loan fraud and illegal fundraising. The case is ongoing.
Local news reports pointed to Yongtai's ambitious expansions, such as into the car parts sector with two acquisitions in the U.K. — of Covpress International Holdings in 2013 and UYT Ltd. in 2015 — contributed to the firm's financial troubles.