At this year’s COP30 Summit in Belem, Brazil, a piece of news caused quite a stir in the manufacturing industry: Chinese tire company Sailun Group became a new member of the World Business Council for Sustainable Development (WBCSD).
You must know that the organization has only more than 240 members worldwide, with a total annual revenue of more than 8.5 trillion US dollars, and Sailun is the only Chinese tire company among them.
This was almost unimaginable ten years ago.
At that time, China’s tire industry could be described as “big but not strong”.
Data from 2011 show that China’s tire production capacity accounts for 35% of the world’s, but its high-end market share is less than 10%.
Most companies rely on imitation of foreign formulas to survive and fall into the quagmire of low-price competition.
Sailun founder Yuan Zhongxue saw the plight of the industry and recruited rubber scientist Wang Mengjiao to concentrate on research and development.
There is a “devil’s triangle” problem in tires, that is, the three properties of rolling resistance, wet grip, and wear resistance are mutually restrictive. International giants have been unable to solve it for many years.
However, Sailun does not believe in evil.
At the 2016 Hannover Tire Technology Conference, they launched “Liquid Gold Material”, which was described by “International Tire Technology” magazine as “Liquid Gold”, which shows its uniqueness.
In 2018, the first batch of liquid gold tires rolled off the assembly line at the Dongying factory, marking the move of this technology from the laboratory to the production line.
By 2021, Sailun has obtained the highest level certification of EU labeling regulations, which means that rolling resistance is reduced by 30%, fuel vehicles can save 6%-10% of fuel per 100 kilometers, and new energy vehicles can increase the range by 10%-15%.
What’s even more amazing is that truck tires can be retreaded twice, and the total mileage can circle the earth 37 times, reducing waste tire emissions by 40%.
Technology alone is not enough, Sailun has also made innovations in materials.
They use ore-based “white carbon black” instead of petroleum-based carbon black, reducing dependence on fossil energy.
Sustainable materials accounted for 75% of the car tires launched last year, and the truck and bus tires even reached 80%.
This year’s new model also adds an RFID chip to realize the traceability of the tire’s entire life cycle, and the self-sealing technology repair efficiency after nailing has also increased by 80%.
In terms of management system, Sailun has established a three-level governance system. The board of directors formulates strategies, the management is responsible for implementation, the execution team does detailed work, and ESG performance is directly linked to executive compensation.
Sailun has set a goal of reducing unit carbon emissions by 30% in 2030 compared with 2022. All overseas factories have passed SA8000 social responsibility certification, and suppliers are also required to accept EcoVadis ratings to implement green concepts from the source.
The “Rubber Chain Cloud” industrial Internet platform created by Sailun is the first such platform in the global rubber industry. It can monitor the operating status of 99% of equipment in real time and analyze 4.5 billion pieces of data a year.
The platform has increased production scheduling efficiency by 25%. The unit energy consumption of semi-steel tires, all-steel tires, and off-highway tires in 2024 will be reduced by 11.5%, 14.0%, and 23.7% respectively compared with 2022.
The utilization rate of hazardous waste reaches 100%. The photovoltaic panels on the roof of the factory can generate 43 million kilowatt hours of electricity a year, which is equivalent to reducing 20,000 tons of carbon emissions.
In terms of supply chain, Sailun required all raw material suppliers to sign the “Supplier Code of Conduct” last year, and 30% of core suppliers obtained EcoVadis silver certification.
In terms of social responsibility, Sailun has cooperated with the World Childhood Cancer Charity for ten years and donated more than 5 million yuan; from 2020 to 2023, it invested 13 million yuan in rural revitalization and education, and employee training covers all levels from new employees to management.
Today, it is no accident that Sailun obtains WBCSD membership.
It has many “passes” such as MSCI ESG rating A, SBTi scientific carbon target certification, and a core member of the GPSNR sustainable natural rubber platform.
Sailun has also worked with Michelin and Bridgestone to develop carbon footprint accounting standards for the entire life cycle of tires, and carries out pyrolysis recycling of waste tires at its factory in Thailand. The rubber powder recycling rate can reach 90%.
Last year, the average export price of Sailun’s high-end tires was 40% higher than the industry average, which reflects the transformation from “Made in China” to “China Solution”.
In the past, China’s manufacturing industry relied on cost advantages, but now Sailun relies on green technology premiums.
Some predict that by 2030, 50% of the world’s tire companies will learn from Sailun’s “material-production-recycling” full-chain green model.
The story of Sailun provides an example for the transformation of the manufacturing industry, telling us that as long as we find the right technological breakthrough, work hard for ten years, and implement systematic management, we can change from a “follower” to a “leader.”
Now Sailun stands at the COP30 summit, representing not only a company, but also the epitome of the green transformation of China’s manufacturing industry.
