Chinese tire companies "going out" without stopping

With the continuous development of the domestic economy, the cost of human resources has increased, the national and local preferential policies have decreased, and the degree of supply and demand saturation in the domestic tire market has become higher and higher, and even a more serious excess situation has occurred.

In recent years, with the growing tire industry in China, more and more international trade barriers have been faced. In particular, the US Tire Special Safeguard case in China in 2009 and the launch of the China passenger car and light truck tires in China in 2014. "Double-anti-" investigations have doubled the sense of crisis in domestic tire companies. Accelerating the pace of expansion abroad has become an important way for powerful tire companies to seek breakthroughs.

(1) In 2012, a merger and acquisition of Sailing shares attracted the attention of some people in the Chinese tire industry. In May 2012, the racer spent 32 million yuan to acquire a 51% stake in Thailand's Taihua Loyong rubber processing plant. The reason why the M & A race attracted attention is because the Chinese tire industry has always been "restrained" by natural rubber, and the racer involved in the supply chain of upstream raw materials through this move, thereby obtaining a relatively stable source of raw materials.

After the Phase 1 project of the Sai Lun Group tire plant in Vietnam was completed and put into production, the second phase of the project was launched immediately afterwards. It is expected that the production scale of 7.8 million semi-steel radial tires and 15,000 all-steel radial tires will be produced annually.

(2) Recently, Shandong Linglong Tire Co., Ltd. Thailand tire factory has been put into operation. The exquisite Thai factory is the first overseas production base for Linglong Tire. The project includes annual production of 12 million sets of high performance semi-steel radial tires and 1.2 million sets of all-steel radial truck tires.

The relevant person in charge of the Delicate Group told the media that the current global strategy of Linglong Tire started from the Thai factory and eventually reached three overseas manufacturing bases. “Now that while the other two bases have not yet been determined, we have already inspected seven or eight places around the world and we will not stop at the pace of 'going out'.”

(3) The tire industry 4.0 plant invested and built by Qingdao Sen Unicorn Tire Co., Ltd. in Rayong, Thailand, with a total investment of approximately US$400 million, is expected to be put into operation in August of this year, and will finally achieve an annual output of 12 million pieces by March 2016. Performance semi-steel radial tire production capacity. After the production, the tire production line will be the world's tire industry with the highest level of automation, intelligence and information technology, production efficiency will increase by more than 50%, labor costs will save more than 70%.

(4)Shandong Aougerui Tire Co., Ltd. and Indonesian Eastern Group jointly invested 270 million U.S. dollars to establish a joint venture company. Since 2012, it has started construction of an annual output of 2 million steel tires and 8 million semi-steel radial tires in Jakarta. It is estimated that this year's sales will reach 400 million U.S. dollars.

The US “double reverse” survey that began in 2014 has basically ended. According to the final results announced by the US Department of Commerce, the affected Chinese tire manufacturers will be subject to anti-dumping duties of 14.35% to 87.99% and 20.73% to 100.77%. Countervailing duties. After the two tariffs were superimposed, some companies entered the U.S. market and had to pay a tariff that was more than one times the price of the product. Most tire companies basically gave up the U.S. market.

Affected by the slowdown in China’s economic growth and overcapacity in the market, domestic sales have become more intense. China’s tire factories are facing internal and external problems, and the domestic tire plant industry is becoming more and more serious. Under this background, going out, especially tires that have been built abroad. The company's ability to resist impact is relatively high, and the pace of foreign expansion of powerful tire companies that are still tangled is bound to accelerate.

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