The tyre giants are on a new investment spree
Recently, global tire giants have released their financial results for 2020 and revealed new investment plans. The last year's market conditions, these companies continued to invest heavily.
The outbreak had a big impact on revenues
In 2020, Michelin's operating profit shrank sharply, down 37 percent from a year earlier.
Similarly, Yokohama Rubber, a Japanese tyre company, has suffered.
The company's operating profit last year was 36.4 billion yen, down 37.8 percent from a year earlier.
Affected by the epidemic, part of the top ranking tire giant, a loss phenomenon.
For the year, Continental reported a loss of 961.9 million euros.
Due to the heavy losses, the group's board proposed suspending the dividend.
Goodyear Tire of the United States lost $1.3 billion in the same period.
The enthusiasm for investment continues unabated
Although the performance is not good, but these tire manufacturers investment enthusiasm, but did not abate.
Michelin said in the earnings statement that the group's development strategy, is continuing to make steady progress.
They have invested tens of millions of euros in expanding their tyre production lines.
The company has also invested heavily in new materials for tires and in its tire recycling business.
Yokohama rubber operating profit, mainly from industrial tires and high-end passenger tires.
In order to increase profitability, the company actively expanded capacity and maintained a multi-brand operation.
They are ramping up capacity at factories in India and Thailand and building a new off-road tire factory.
Continental is focusing on high technology, adding about 250 million euros to smart projects, including tire monitoring.
Goodyear also made a splash, announcing a deal to buy Cooper Tire for about $2.5 billion.
The deal is expected to preserve its place in the world's top three.
An industry analyst said that affected by the epidemic in 2020, tire giants have experienced a short setback.
But the growing investment reflects their confidence in the future tyre market.
Next, the tire industry continues to expand, will ignite a wave of fiercer competition.