EU Tyre Labeling Act to Implement Challenge Opportunities Next Year

There is no doubt that China has become a world leader in the manufacture of tires, with an annual output of 420 million sets, accounting for one-third of the world's total tire production. By 2015, this figure is expected to increase to 570 million sets. However, Chinese tires The industry is facing a new challenge. In November 2012, the European Union’s tire labeling regulations will be formally implemented, which will categorize and refine tire performance indicators and put forward higher requirements for tire production processes.

A few days ago, the “Green Rubber Day” event of the LANXESS Group with the theme of “high-tech achievement of a green motorization wave” was held at the Beijing International Trade Hotel. During the "Green Rubber Symposium" held on December 1st, Christoph H. Kalla, head of R&D's high-performance butadiene rubber market and R&D, combined the two global trends of tire labeling and high-performance green tires, comprehensive analysis introduced the green Tire and tire labels will pose challenges for the tire industry and the great challenges currently faced by the Chinese tire industry.

Some new countries will start implementing corresponding policies as soon as new EU regulations are implemented

At present, countries around the world are brewing or have implemented tire label regulations. From next year, the European Union and South Korea will implement mandatory tire label regulations. Japan has implemented a voluntary tire labeling system since 2010. The United States had already passed laws containing tire label regulations as early as six years ago, and current industry groups and regulators are making final changes to this law. Brazil is brewing a similar tire labeling legislation. A large part of these tire labeling programs have been introduced because foreign tires and car manufacturers intending to export their products to the EU must comply with the EU's new tire labeling regulations. It is no coincidence that South Korea has launched its own tire labeling program. 28% of tires in the country are sold to the EU.

The European Union will classify tires into seven grades, A~G, based on fuel consumption and slippery road surface grip: A represents the highest performance and G represents the worst performance. In addition, noise emissions from tires will also be classified. In Korea's new tire label, the tire's rolling resistance and wet grip will be divided into 1 to 5 levels. Japan's tire label will also mainly indicate the tire's rolling resistance and wet grip level. The United States has not made a specific decision, but it is very likely that the tire will be graded based on its fuel efficiency, traction performance and tread wear.

These label regulations will have an important impact on the development of the tire industry, and promote the improvement of tire quality and performance.

China's tire exports face pressure and opportunities

Chinese tire manufacturers exporting products to Europe are under tremendous pressure to increase their tire grades under the new EU tire labeling system.

According to Christoph H. Kalla, 36% of tires produced by Chinese manufacturers do not meet the EU's first phase standards, and 50% do not meet the requirements of the EU's second phase. From the perspective of the global market, the Chinese tire industry faces enormous challenges.

However, LANXESS believes that this situation provides China with a huge opportunity to take the lead in implementing appropriate policies and adopting appropriate technologies to prove to global consumers that Chinese-made tires are world-class in terms of performance, quality and value. From this perspective, tire labels can significantly reduce the time and money Chinese tire manufacturers need to successfully launch their product brands in the export market. If the tire label shows that the quality of Chinese tires is excellent, foreign consumers will be more likely to believe this fact. Another important reason for producing green tires in China is that as electric vehicles become more popular, green tires will do the same - green tires will play a role in expanding the product range of electric vehicles.

This industry trend will also benefit the Chinese government and provide support for achieving the goals set in the “Twelfth Five-Year Plan” framework. Tyre tags and green tires support environmentally friendly and sustainable economic development.

Working together to promote the revolution in China's tire industry

Given that the current global oil price is soaring and countries around the world are actively working to reduce greenhouse gas emissions, it is expected that more and more countries will use tire labels in the future, and green tires on roads will also increase. With the introduction of mandatory tire labels in the European Union, the global market share of green tires will increase by 15%. As more countries introduce tire label regulations, the demand for green tires will continue to grow significantly.

Christoph H.Kalla said that LANXESS is very happy to cooperate with the Chinese tire industry with leading synthetic rubber technology and make concerted efforts to jointly promote the grand goal of sustainable development in China. LANXESS believes that if Chinese consumers understand more about the economic and environmental benefits of these tires, if Chinese manufacturers introduce green tire regulations, then Chinese suppliers will surely succeed. This important change is related to China's environment, road safety, and economy. Tire label regulations and green tires are the future trend.

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