The punitive tariffs imposed by the United States on Chinese automobile tire export enterprises have been officially implemented for more than two months. The reporter learned from Guangzhou Huanan Tire Factory yesterday that in September and October, the company did not receive any orders from the United States, and the average monthly gross profit Sharply reduced by 80%, received small orders in November. Although the company has begun to gradually shift its share to Europe and the mainland, it is difficult to get out of the shadow of the special security case in the short term.
It is reported that the output value of parts such as rubber tires in Conghua reached 25 billion yuan, mainly relying on the South China Tire Factory located in Conghua's production base.
In an interview with the Information Times reporter, Wang Jianzhong, director of the Economic and Trade Bureau of Conghua City, said that the US tire special security case had a great impact on Conghua's automobile tire industry. Prior to the US tire special security case, the original orders of Conghua's auto tire industry were very promising and expected to be realized throughout the year. The output value of 11 billion yuan, but after the special security case, the output value fell sharply. However, after more than two months of adjustment, this year should be able to return to normal levels in December this year.
The person in charge of the South China Tire Factory stated that although the company has introduced a series of rescue measures, it is still difficult to turn the tide in the short term and hopes that the relevant government departments can provide support and help.
Monthly average gross margin reduced by 80%
According to reports, on September 11th, the Obama administration approved special measures to protect Chinese tires imported from the United States. It imposes punitive tariffs on imported cars and light truck tires. The tax rate is 35% for the first year, and the second year is 30%, the second year is 25% (current import tariff is 3.4%~4.0%), effective on September 26.
"In September and October two months, we didn't sell tires (which were exported to the United States). We started to have a little order in November and it is still unknown in December." In terms of product transfer, the official said, "The products that were previously exported to the United States have the highest profits, and other markets cannot accept them."
According to reports, due to the impact of the international financial crisis, production and operation of South China Tire Factory fell due to the impact of the international financial crisis in the second half of 2008. The loss reached only 58.99 million yuan in the first two months of 2009, and it was achieved through active response until August. Annual cumulative profit.
"From February to August, it was able to maintain a gross profit of about 25 million, but after the special security case occurred, our gross profit was less than 5 million." According to the person in charge of the Huanan Tire Factory, if the Hualun Company insists on not withdrawing from the United States. The market, which alone bears 35% of the punitive tariffs, continues to sell in the United States. Based on 2008 sales and profit margins, the company will lose 188 million yuan in profits each year. After 20-inch or more products were forced to exit the US market, this part of the product had basically no consumer market in Europe, other export markets, and the domestic market. It was only able to cut production and stop production.
Expand domestic share
Although the U.S. market has suffered from frost, the person in charge said that it will not give up the U.S. market and the company will use the newer high value-added products to capture the U.S. market and strive to form new growth points.
According to the person in charge, the company continued to develop new markets such as the Spanish market, the New Zealand market, the UK market, and the Canadian market on the basis of stabilizing the traditional export market share, striving to maintain steady growth in exports. In addition, since the financial crisis, our company has further strengthened the domestic vehicle support.
The person in charge also revealed that the company is exploring new ways of regional cooperation. In cooperation with Guangzhou Bus and other companies, it plans to produce 150,000 load-bearing tire renovation projects annually, with an investment of 40 million yuan, and an annual output value of 100 million yuan. yuan.
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