Agreements to supply Advanti alloy wheels in Michelin China’s TyrePlus retail stores, and distribute Nitto tyres and FIAMM batteries in China will add breadth and depth to YHI’s existing presence
MAINBOARD-LISTED YHI International Limited(YHI) (友发国际有限公司) announced on 25 October 2011 that it has recently signed three contracts with three separate partners in order to broaden its business offerings and strengthen its supply and distribution networks in China.
The first is an agreement for YHI to be a product supplier of Advanti alloy wheels to Michelin China’s TyrePlus chain stores; second with Japan-based Toyo Tire & Rubber Co. (Toyo Tires), Ltd to distribute Nitto brand of tyres; and a third with Italy based FIAMM Group to distribute FIAMM brand of batteries – all in China.
YHI Group Managing Director, Mr Richard Tay (郑 添和) said: “YHI has extensive experience and expertise in China and with these three partnerships, we will be able to broaden our business offerings and strengthen our supply and distribution networks in China. We have been in China since 1992 and currently, we have two alloy wheel factories in China – in Shanghai and Suzhou. In addition, YHI distributes batteries, alloy wheels, tyres and buggies in China. I believe these partnerships withour three partners will add breadth and depth of YHI’s existing presence in this fast growing market and will bring mutual benefits to all companies.”
Mr Tay said these initiatives are in line with the Group’s five-year business expansion plan where it proposes to grow its manufacturing and distribution businesses and to reach annual sales target of S$1 billion by 2015.
Advanti Alloy Wheels in Michelin’s TyrePlus network
The agreement with Michelin China’s Tyreplus (Shanghai) Auto Accessories Trading Co., Ltd. is for YHI to supply its proprietary brand, Advanti alloy wheels to be sold in Michelin China’s 628 TyrePlus chain stores in China from October 2011 onwards. Since it entered the China market in 2003, TyrePlus chain stores are in all parts of China, including all major cities with a focus in three major cities such as Beijing, Shanghai and Guangzhou.
Six exclusive designs of Advanti alloy wheels will be available at TyrePlus chain stores, with sizes ranging from 14 inches to 19 inches, covering most of China’s class A and B vehicles. Advanti alloy wheel is the only wheel brand to be offered in their chain stores. In addition, TypePlus also offers other product brands as Shell, Total, Bosch, Philips and Hella and is one of the fastest growing retailers in China. All these brands will provide customers with high-quality products and professional services.
“We are very proud to enter this agreement with Michelin, an international tyre manufacturer, to supply Advanti alloy wheels through its TyrePlus chain stores in China. This is indeed an affirmation of the quality of YHI’s products from an established tyre manufacturer. This excellent partnership will enable Michelin China and YHI to extend our reach across China and serve an increasing number of car owners more effectively and professionally,” said Mr Tay.
Advanti Alloy Wheels is YHI’s proprietary brand, and its manufacturing arm is the sole producer of such alloy wheels. Since 2008, YHI has been an official partner of the Formula One (F1) Scuderia Toro Rosso team, sponsoring Advanti Racing Alloy Wheels for the Scuderia Toro Rosso cars worldwide for the races, including the recent Singapore F1 night races. The Advanti Alloy Wheels are the only product from a Singapore company in the F1 Toro Rosso racing cars.
Nitto brand tyres distributorship
YHI’s wholly-owned subsidiary, YHI Corporation (Shanghai) Co., Ltd and Toyo Tire & Rubber Co., Ltd, have signed a contract, which will see YHI distributing Nitto brand passenger car tyres, including 4×4, sport utility vehicles (SUV) and American light truck tyres in China. Toyo Tires is building a tyre factory in Zhang Jia Kang, which will be ready by end 2011. This initiative will help to localise Toyo tyres with its mass production by end February 2012 with the number of sizes and designs of the tyres increasing thereafter. The factory will start production of Nitto brand tyres by end 2012.
Mr Tay said: “This will benefit YHI as the increase in designs and sizes will enhance sales quantity of Nitto brand tyres and strengthen our presence in China. We will also start selling premium passenger car tyres imported from Japan and America.” In addition, YHI is also given the distributorship for Nitto brand tyres in Hong Kong, New Zealand and Australia.
Established since 1945 in Japan, Toyo Tires manufactures and markets car tyres, industrial rubber and synthetic resin products, soft and rigid polyurethane products, waterproof sheets, anti-vibration rubber for automotive parts, and seat cushions. Its Nitto brand, established in 1979, consists of a wide spectrum of passenger car tyres for normal driving, racing and off road uses. The Nitto brand has gained popularity particularly in North America for its high added-value large-diameter tyres.
FIAMM batteries’ distributorship in China
The agreement was signed between YHI and the FIAMM S.p.A to distribute FIAMM starter batteries in the whole of China. Since 2009, YHI has been distributing FIAMM batteries in the region due mainly to YHI’s strengths and expertise in the Asia and Oceanic region. As a result of this partnership, FIAMM has decided on a closer and long-term collaboration, which caters specifically to China’s automotive replacement market for starter battery units with YHI.
Since 2004, YHI has been distributing Hitachi batteries in China. The addition of another brand through FIAMM batteries will provide more choices to customers in the Chinese market. This is because Hitachi batteries are more compatible to Japanese make automobiles, whereas FIAMM batteries are more compatible to the American and European make cars. These business offerings will enhance YHI and its partners’ presence in China.
FIAMM starter batteries are part of the product offerings of FIAMM S.p.A, which was founded in 1942, and is a leading energy storage solutions provider.
YHI turned in net profit after tax attributable to shareholders of S$13.0 million for the six months to 30 June 2011 on the back of revenue of S$263.2 million. The latest agreements will not have significant impact in the current financial year.