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China's tire production capacity layout "inside and outside"

2019-01-05

A few days ago, at an industry conference, Chai Yongsen, chairman of the Tire Branch of China Rubber Industry Association and chairman of Double Star Group, summarized the major capacity changes in China's tire industry.

Frequent domestic mergers and reorganizations

According to Chai Yongsen, by the end of 2017, 7.3 million backward oblique tires and 18 million ordinary radial tires will be eliminated nationwide.

Among them, the elimination of all-steel tire production capacity of 10 million, semi-steel tire production capacity of 8 million.

A total of 10 tire factories were eliminated.

In addition, in a certain area of Shandong alone, 10 companies have completed mergers and reorganizations, and some are being implemented.

Overseas factories become a trend

Chai Yongsen said that while China's tire industry is transforming and upgrading, merging and reorganizing, and resolving backward production capacity, it is also actively going abroad to invest and set up factories.

At present, the overseas factories of Sailun Jinyu, Linglong, Zhongce and Sen Kirin have a good momentum of development, with double-digit growth in production capacity release, and the double-money Thailand factory has also been put into production.

At the same time, Guizhou Tire plans to build a factory in Vietnam, Triangle and Sen Kirin plan to build a factory in the United States, Pu Lin Chengshan plans to set up a factory in Malaysia, and Linglong Tire plans to build a factory in Europe.

In addition, a number of domestic tire manufacturers are also actively "going out".

Chai Yongsen believes that by building factories abroad, tire companies can not only expand new markets to achieve international development, but also avoid trade frictions and enhance the influence and competitiveness of Chinese tires in the global market.

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