ZC Rubber opens new 5G digital tire manufacturing plant

Hangzhou, China – Zhongce Rubber Group (ZC Rubber) has rolled off first tires from its newly built 'green 5G digital factory' in Qiantang district, Hangzhou.

To manufacture “high-performance radial tires”, the plant “fully utilises digital technology” according to a ZC Rubber statement issued 20 Dec.

The tires, it said, include the company’s flagship-series products, electric vehicle (EV) tires and OE tires for both domestic and international markets.

"Future factory v2.0", said ZC Rubber, will produce flagship series, EV tires, OE tires for both domestic and international markets.

In a statement to ERJ, the tire maker said it already operates "a smaller future factory v1.0" in Qiantang based on 5G technologies.

The new 5G factory, said the 21 Dec statement, is an "upgraded version" in terms of production technology, automation level, and efficiency. 

The plant, according to ZC Rubber, is "considered a greenfield factory" as it is a new construction on undeveloped land.

"Thefactory will have a larger production scale, higher production efficiency, better product quality, and reduced labour and energy consumption," said ZC Rubber.

Citing an on ging IPO plan, ZC Rubber declined to comment further on the capacity or investment size of the unit. 

According to ZC Rubber,the new plant has been established in response to growing automotive parc in China, which reached 319 million vehicles by the end of 2022.

“This number promises a huge aftermarket for passenger car tires,” stated China’s largest tire maker.

Furthermore, it noted, the China Association of Automobile Manufacturers (CAAM) predicts sales of new cars in China to reach 31 million units in 2024, including 11.5 EVs.

This represents an overall year-on-year growth of 3%, as well as an estimated 20% growth in the EV segment, continued ZC Rubber

“The rapid expansion of Chinese EV cars market with large car population guarantees a constant strong demand on PCR tires in China,” said the tire maker.

The 5G factory “will be ready for such a demand-increase and satisfy customers in both domestic and international market”, its statement added.