China's Tire Production Capacity Layout Different Inside and Outside

Recently, at an industry conference, Chai Yongsen, chairman of the China Rubber Industry Association Tire Branch and chairman of the Double Star Group, summarized the major capacity changes in the Chinese tire industry.

Domestic frequent mergers and acquisitions

According to Chai Yongsen, as of the end of 2017, the country has eliminated 7.3 million backward bias tires and 18 million ordinary radial tires.Among them, the production capacity of all steel tires was 10 million, and the production capacity of semi-steel tires was 8 million.A total of 10 out of the tire factory were eliminated.In addition, in only one area of Shandong, 10 companies have completed mergers and acquisitions, and some are being implemented.

Building a factory overseas 

Chai Yongsen said that while the Chinese tire industry is undergoing transformation and upgrading, mergers and acquisitions, and defusing backward production capacity, it is also actively going abroad to set up factories.

At present, the overseas factories of Sailong Jinyu, Linglong, Zhongce and Sen Qilin have developed well, and the production capacity has double-digit growth. The Shuangqian Thai factory has also been put into production.

At the same time, Guizhou Tire plans to build a factory in Vietnam, Triangle, Mori Kirin opened the US construction plan, Pulin Chengshan plans to set up a factory in Malaysia, Linglong tires began planning for European construction.

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

Chai Yongsen believes that by setting up 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.