Dongying, China – Chinese tire maker Hengfeng, which was the world’s 20th largest tire maker in 2019 with sales of $1.8 billion (€1.5 billion), has split into three subsidiaries for more independent operations.
All three firms predate the split-up – which formally happened in 2020 – and are still under the same group, although each will operate as a separate legal entity.
Assets were injected into the three subsidiaries and no facility relocation was involved, according to Chinese tire & rubber industry sources.
The largest subsidiary, Shandong Yongfeng Tyre, is based in Linyi, Shandong province with three plants, able to produce 16 million unit passenger car tires and 2.5 million unit truck and bus tires annually.
Shandong Changfeng Tire is based in Dongying, Shandong, the headquarters city of Hengfeng. The subsidiary makes 12 million unit passenger car tires each year at its two plants.
Mirage Tires is the smallest with 6 million unit passenger car tires and 2 million unit truck and bus tires annual capacity. It is also based in Dongying, Shandong.