Jinyu Tire Group enters U.S. commercial market

QINGDAO, China — Commercial tire maker Jinyu Tire Group sees entering the U.S. market as the next logical step for a Chinese-owned company to grow on a global scale.

"Chinese tire enterprises should go global (manufacturing, sales and research and development) and build themselves gradually into an international enterprise," Liu Zhiyuan, general manager of sales at Jinyu, said.

During the pandemic, the company built a factory in Vietnam, and it started shipping tires in May to the U.S. from that plant.

The company will sell its tires in the U.S. under the Jinyu and Amulet brand names, competing in the Tier 3 segment.

The company said the core products will cover the four main sizes in steer, drive and trailer tires. Both brands offer a regional steer, an open- and closed-shoulder drive as well as a shallow trailer tire designed for both regional and long-haul applications.

They also offer specialty sizes such as 255/70R22.5, 17.5-inch rim diameter trailer tires and all 19.5-inch position products.

"Our products are manufactured with high quality standards, utilizing high quality raw materials, providing full tread depths and wide footprints," the company said. "We believe we offer more value, as we do not cut corners when it comes to producing quality products."

The Jinyu Vietnam factory was established in February 2020. The construction of the main plant started in July 2020 and finished March 2021.

The facility has a rated capacity of 2 million truck and bus tires per year. The company said around 30%-40% of capacity will be shipped to the U.S.

"It is important for us to establish the foundation of trust (in the U.S. market), and this is achieved by providing excellent quality products, excellent service and competitive programs," Jinyu said.

Founded in 1995, Jinyu has a global capacity of 5.5 million truck/bus tires annually. Its sales network covers more than 100 countries and regions. The Vietnam factory is the first overseas production base for Jinyu. The company's U.S. office is located in Nevada.

"Our (U.S.) strategy is to sell a factory-direct container program through our partners that are made up of wholesalers and commercial servicing dealers," the company said. "We believe in supporting our dealers' sales efforts and working with them to build our brand at both the dealer level as well as with their end users."

The company said that while supply chain issues persist, it has managed to regularly attain containers and space on vessels.

"The shortage of containers, limited space on the steamship lines and escalating freight rates continue to be problematic," the company said. "But we are continuing to successfully navigate these challenges and are working hard to satisfy our customers' needs."

Right now, the company is focused on expanding its customer base in America. Mr. Zhiyuan said Jinyu has built experienced sales teams in the U.S. and Europe. Its R&D team also visited the U.S. to better understand the needs of customers.

"Jinyu Tire's overseas sales channel localization operation will greatly improve the overseas competitiveness of Jinyu Tire," Mr. Zhiyuan said. "Jinyu Tire always steps forward with a management principle that it provides good-quality products and high-quality service for its consumers all the time."

The company has no immediate plans to consider producing tires in the U.S., but Mr. Zhiyuan did say the company is "actively preparing for the construction of new overseas tire factories in the future." He did not elaborate on specific locations.

"We envision introducing additional brands to the market and growing our business by attracting new dealers and continuing to grow our share of accounts with our existing dealer base," the company said of the future in the U.S.

"We also envision adding additional sizes and patterns to our program and local inventory in strategic locations."