Tire industry self-rescue and then a new move to raise the threshold of the industry

The United States imposes a three-year punitive tariff on tires imported from China, which will block the development of Chinese sedan and light truck tires in the U.S. market in the next three years. In response to the obstruction of exports, relevant personages of domestic tire companies said in an interview with reporters on September 16. The business community is brewing the relevant industry associations and departments, and proposes to raise the industry standards for domestic tire production, accelerate the speed of industry consolidation, and at the same time, start domestic The needs of the market support domestic tire companies to build factories overseas.

Faced with the current situation, the Secretary-General of the China Rubber Industry Association Deng Yaxi also revealed yesterday that commissioned by the Ministry of Industry and Information Technology, the Association is also negotiating the conditions for entry into the tire industry, and access conditions are expected to be introduced before the end of this year.

Businesses recommend increasing industry barriers

“Our company is brewing some suggestions and writing a letter to the industry association.” Zhang Keshun, Director of the Planning Group of Linglong Group, said, “including recommending that countries adjust the standards for tire production and raise the threshold for industry entry.”

According to incomplete statistics, there are more than 400 enterprises above designated size in the domestic tire industry. Although China is a big country in tire production, it is by no means a tire-producing country. In addition to the total output in the world, China's tires are of high quality, quality and production. Compared with the United States, Japan, South Korea and other tire countries, the scale is far away.

Zhang Keshun said that the current domestic tire production standards are still 20 years ago. Many small-scale enterprises' products are far from the big ones, but they also meet the national standards. Too many small companies cause disorderly market competition, blindly cut prices, and disrupt the market.

“As the state seeks to attract investment to expand domestic tire production, it must also impose restrictions on small businesses. These enterprises blindly produce, duplicate construction, and there is excess production capacity,” said Zhang Keshun. According to industry insiders, the blind and redundant construction, especially the taking of all-steel radial tires in one area, will directly lead to even more imbalanced markets.

In 2008, China’s tire production reached 350 million, including 260 million radial tires and a radialization rate of 75%. However, the number of tire companies in China is large, the industrial concentration is low, the homogeneity of products is serious, and there are few high-value-added products, and the benefits are affected.

In addition, China's tire export ratio is as high as 45%, and raw materials and the market are on the outside, making the tire industry not only affected by the sluggish international demand, but also suffered from the suppression of international trade protectionism.

Zhang Keshun said that the company will also recommend that the country use special funds to support the company's research and development and brand building, and support the company's overseas expansion.

At present, the top ten foreign-invested tire companies in the world have basically two or three joint ventures or cooperative enterprises in the Mainland, and local tire companies rarely go out.

In addition, domestic companies also hope that the government will increase the tire export tax rebate rate and reduce rubber import tariffs; build domestic vehicles to support the national tire brand to increase demand in the domestic market; some companies also plan to raise the price of export tires.

"Improve the price is the company's market behavior." Deng Yaxi said, "The rationalization proposal put forward by the company will be adopted, but the final decision is in the hands of the government."

Accelerate the formulation of industry access conditions

At present, the Rubber Industry Association is negotiating the conditions for entry into the tire industry. Deng Yalu said that after the United States has applied for China Tyre Special Protection, the pace of formulating industrial restructuring will be even faster.

She believes that the global financial crisis has made the tire industry more clearly see its own problems. Only by properly formulating industry access conditions and industrial adjustment opinions and plans can it ensure the healthy and steady development of the tire industry.

According to Zhao Wenquan, director of the Technical Committee of the China Rubber Association, the Ministry of Industry and Information Technology has repeatedly mentioned the issue of access after starting to formulate industrial revitalization plans in March this year. It has explicitly proposed to establish conditions for entry into the tire industry and hopes to introduce it before the end of this year.

“The adjustment of the industrial structure is also very difficult.” Zhang Keshun said, “Because many projects are launched blindly with the support of local governments, the country has no plan guidance and lacks market regulation.”

The relatively low-priced mid-range and low-end tires are still very popular in most parts of China. Tire access conditions will involve products, project construction, product recall, supervision and management, among which environmental protection, energy conservation and emission reduction will be important indicators. “The radial tires are the development direction of the tire industry,” said Deng Yaxi. “At present, the meridianization rate is about 80%, and the biased tires only account for about 20%, and the low-tech tires are still in production.”

The Honorary Chairman of the China Rubber Association, Geng Hongzhen, stated that the entry barriers for the tire industry are very important, and their access conditions should be combined with the industry's "Twelfth Five-Year Plan" and guidance for the structural adjustment of the rubber industry, with reference to the development of related industries.

According to another understanding, the "Guiding Opinions on Structural Adjustment of the Rubber Industry" is about to be issued, and the "Twelve Five-Year Plan for the Development of the Tire Industry" has also been initiated.

However, the relevant government departments have issued clear signals of industrial adjustment. Yao Jian, the spokesperson of the Ministry of Commerce, clearly stated that in the next step, the Ministry of Commerce will continue to provide support and counseling for corporate negotiations, and will work together with relevant departments including the Ministry of Industry and Information Industry and industry associations to formulate measures including the support of tire upstream and downstream industries; At the same time, it supports the tire industry to further improve its industrial structure, improve its technical level and increase its product competitiveness.

Die Casting Led Housing

Die Casting Led Housing

Laishun Metalwork Co., Ltd. , http://www.zjdiecasting.com

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