Value tire maker Sailun gets aggressive in U.S. market

HOMESTEAD, Fla. — Value tire maker Sailun Group Co. Ltd. has taken an aggressive approach to U.S. growth — buoyed by a partnership with tire distributor TBC Corp. — by investing in more research and development and a state-of-the-art factory in Cambodia.

In North America, Sailun plans to bring to market an opening-price-point electric vehicle (EV) tire, a last-mile delivery tire that fits 97% of the market and new light truck tire offerings, among others.

The Chinese tire maker highlighted its evolution, introduced new products and put two of its most popular lines to the test during an event May 11 at Homestead Miami Speedway hosted by the Sailun North America team.

Sailun ranks as the No. 17 tire maker in the world, according to Tire Business research, based on fiscal 2020 sales of $2 billion. Fiscal 2021 results haven't been released.

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Sailun "proudly positions itself as a Tier 4," according to Jared Lynch, director of sales, passenger and light truck tires, Sailun North America.

Lynch noted that 50 million tires were sold in the value market last year, and consumer demand continues to grow. Comparing 2021 to 2019, Sailun said demand for tires with 18-inch and larger rim diameters has increased by double-digits in the touring, UHP, all-terrain and mud-terrain segments.

"There's a fantastic opportunity to capitalize on that market," Lynch said, referring to larger light truck tires.

Competing in the value-brand market comes with challenges — like the perception of poor quality, support and trust issues — that Sailun is focused on addressing through expansion, partnerships and testing.

"We want to give you Tier 1 quality at a value price," he said. "The way we do that is through vertical integration and through expanding our footprint and our knowledge."

At a recent Sailun ride-and-drive event at Homestead Miami Speedway in Homestead, Sailun invited participants to test the Inspire, its passenger all-season touring tire, and the Terramax HLT, for SUVs and light trucks, against Goodyear tires on wet and dry driving courses.

Drivers did not know which tire was on the vehicles they were driving during the event, and a survey showed most participant found little difference in the performance of the tires. Sailun said the point of the demonstration against a Tier 1 tire was to show the quality of its products.

The Homestead event, Sailun's first since 2019, is "important for our customers to know that you really can get a quality tire at a value price," Lynch said.

Sailun, which was created by tire-building machine designer Mesnac Co. Ltd. in the early 2000s, has rubber plantations, research and development centers and manufacturing spread out throughout the world.

In 2014, Sailun opened its Vietnam factory — the size of 110 football fields — where it produces tires for the North American market.

After early success there, Sailun decided to expand, recently opening a factory in Svay Rieng, Cambodia. The factory broke ground in 2021 and already is producing tires.

Lynch called it "one of the most state-of-the-art" facilities in the industry. For comparison, he noted the Vietnam plant produces 13 million tires with 6,000 employees, while the Cambodia plant is capable of producing the same amount with only 1,000 employees.

Lynch said the company planned to commission production at the factory in May but because of demand started production months earlier. He said one aim of the factory was to have the building machinery necessary for larger-rim diameter tires in the light truck market, which require a two-step building process.

While many companies predicted the rise in demand for larger light-truck tires, "no one saw that coming to this extent," he said.

"What we've been able to do in Cambodia is have adaptability of the modern-day building machines. Not only are they automated, but they can also build both (one-step and two-step tires)," Lynch said. "It'll help us with today's demand but also in the future."

Sailun plans to move all production for the North American market to the plant.

The company also is taking quality control "very seriously," Lynch said, noting along with factory and third-party testing, new products will also be tested at the company's recently opened R&D center in Tennessee.

"Not a single tire Sailun Tire sold in North America doesn't go through rigorous testing," he said. "We invest a large portion of our profits back into R&D, and that's what we feel like will drive our success today but also in the future."

When is comes to customer support, Sailun said its relationship with TBC Corp. has been a huge boost. Sailun Tire Americas, a Sailun Group subsidiary in Brampton, Ontario, oversees distribution of the Sailun brand in North America. TBC Corp. is the brand's designated distributor in the U.S.

"(TBC) have grown because they helped their customers grow," Lynch said. "They did it the right way."

TBC, considered one of the largest distributors of replacement tires in the U.S., distributes Sailun tires both on a wholesale basis through its TBC Brands and National Tire Wholesale (NTW) units as well as through its NTB and Tire Kingdom retail chains and franchised Big O and Midas outlets.

Lynch said NTW is great "example of the tier system." Sailun is positioned at the entry-level price point in a line-up that includes a wide range of brands like Hankook, Michelin, Pirelli and Sumitomo.

Sailun plans to have its new EV tire available for retail sales early next year. The new ERange EV tire features a compound able to break the "magic triangle" — fuel economy, wear and wet grip — that commonly requires a sacrifice of one element for another.

"Our proprietary EcoPoint3 liquid base has allowed us to expand on all three of those factors," Lynch said. "We get the rolling resistance improvements, awesome treadwear ... and premium traction."

The technology allows rubber compounding materials to be mixed "fully uniformly" under continuous liquid-phase conditions and provides a consistent rubber compound mix, Sailun claims.

Sailun tested the ERange on a Tesla Model 3 against the "OE tires" and found a 5% improvement in dry braking. The ERange performed "on par" with the other tire in terms of wet braking and cabin noise, the company said.

The notable difference, Lynch said, was that the ERange was 15% more efficient on the "rolling resistance coefficient," which he said translates to a 7% increase in the charge out of the vehicle's battery life.

The ERange will be released in 32 sizes covering 80% of EV and hybrid fitments. Production of the ERange will start in late summer and be available for order at the end of the year, the company said.

Other new products announced by the company include:

• Terramax HLT-C: Sailun hopes to capture a share of the last-mile delivery tire market with the Terramax HLT-C, a tire designed specifically for "touring" sized delivery vehicles. The product is the commercial application of the company's light truck and SUV Terramax HLT. It will come in seven sizes and cover about 97% of fitments.

• Atrezzo SVA1: The company's next-gen ultra-high performance all-season tire. Lynch said it offers "incredibly good traction and handling especially in the dry, suitable even for European vehicles with higher speed ratings."

• Terramax A/T 4s: The new A/T light truck and SUV tire is 3PMS rated. "It's actually a pretty aggressive all-terrain tread pattern, but it has really quiet road characteristics," Lynch said.

• Atrezzo SVR LX-plus: The LX-plus is a high performance tire aimed at luxury SUVs.

• Atrezzo SH408: An update of Sailun's popular SH406 all-season passenger tire line.

• Terramax R/T: The company said it would release its first rugged-terrain tire in 2023. Lynch said it will have an aggressive look, carry the 3PMS rating and an F load range. Lynch said the increased load range is to accommodate the coming generation of electric trucks.

This summer, Sailun said it plans to update its website and launch a series of "quick"training videos "to sell a tire in one minute or less," Lynch said.