U.S. Tire Manufacturing Saw Recovery in 2017, with Nearly $2 Billion in Projects Slated

Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. tire production could be on an upswing, after the 2008 recession and low-cost imports depressed capacity for years. Domestic production capacity stood at 352.7 million tires in 2008, according to Modern Tire Dealer, then dropped to 306.3 million in 2013, after four manufacturing plants closed between 2008 and 2011. Since then, the recovery of U.S. auto industry and the increased domestic presence of foreign-based companies boosted production capacity to 324.5 million tires in 2017.

Low-cost imports arguably had a bigger impact on the U.S. tire-manufacturing industry than the difficulties faced by General Motors (NYSE:GM) (Detroit, Michigan), Fiat Chrysler Automobiles (NYSE:FCAU) (London, England) and, to a lesser extent, Ford Motor Company (NYSE:F) (Dearborn, Michigan) in 2008-2009. But the economic environment since has improved substantially, and several major projects are underway to continue the recent growth in production capacity.

• Sumitomo (Tokyo, Japan) is expanding its facility in Tonawanda, New York, to increase production by about 5 million tires per year. For more information, see Industrial Info's project report.
• Toyo Tire & Rubber Company (Osaka, Japan) is working on a two-phased expansion at its plant in White, Georgia, to grow capacity to 13.9 million tires per year when complete. See project reports for Phase I and Phase II.
• Michelin (Clermont-Ferrand, France) has an equipment addition slated for its facility in Ardmore, Oklahoma, and is expanding its plant in Woodburn, Indiana, owned by subsidiary BF Goodrich. The two projects will result in a production capacity gain of about 4 million tires per year. See reports on the Oklahoma and Indiana projects.
• Giti Tire (Singapore) and Triangle Tyre (Shangdong, China), who are new entrants to the U.S. market, are constructing facilities that eventually will provide the capacity for another 11 million tires per year for the domestic market. See project reports for the Giti facility and Phase I and Phase II of Triangle Tyre's facility.

These projects together represent about $1.88 billion in investment value and an increase of approximately 12.4 million tires a year in production capacity, which would return nearly to 2008 levels. With the recent tax reform and the Trump administration's possible tariffs on imported goods to support domestic production, more developments could be ahead for the tire-manufacturing industry.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.