Jiaozuo, China – Aeolus Tyre has reported a 12% drop in revenue to €574 million over the first nine months of 2016, continuing a double-digit year-on-year downturn since the first quarter.
Net profit in the same period fell by 11% to €24 million, compared with a double-digit rise in the first quarter and almost flat interim profit.
In October, the US Department of Commerce released its preliminary determination on anti-dumping tax rates for off-the-road tire import from China, raising Aeolus' anti-dumping rate from 13.9% to 105.3%.
“Off-the-road tire export to the US accounted for less than 1% of our total revenue in 2015,” said the company in a statement. “It has little impact on our business.”
Late last month, the company announced plans for adding truck tire manufacturing capacity outside of China as part of its strategy to maintain its market presence in the US.
The company, which is in the process of integrating its manufacturing assets with those of China National Chemical Co.’s two truck and bus tire subsidiaries, said its revamped structure will allow it to deal more effectively with the pending US duties on Chinese truck and bus tires and make Aeolus brand more competitive in the US market.
The US market can expect to see these new changes gradually implemented in 2017, Aeolus said.
“These changes will include sourcing new manufacturing capacity outside of China,” said Xu Xin, Aeolus’s director of international truck, bus, radial sales and marketing.