Tire Industry's Autonomous Transformation and Upgrade Promote the World's Advanced Level

The tire manufacturing industry is a traditional advantageous industry in Shandong. Its output, sales revenue, profits and taxes, and export volume ranked first in the country for 11 consecutive years. However, Shandong tire companies have serious excess capacity, high-end products, and low brand awareness. The Shandong Provincial Government has decided recently to speed up the transformation and upgrading of tire companies and to advance to the advanced level in the world.

The tire production of Sunny Rubber in Dongying Guangrao is only 1.7 million pieces per year. It is a medium-sized enterprise in the industry. However, the price of tires produced is the most expensive among the more than 100 tire companies in Guangrao. Zhu Jian, general manager of Shandong Haoyu Rubber Co., Ltd., said, “To avoid competition with everyone and to take the road of differentiation, we have established a high-end product from the very beginning, relying on service, quality and brands. Pursue a high profit."

Piled up waste tires

There are nearly 300 tire companies in Shandong, forming the Jiaodong industrial cluster and Guangrao Shouguang industrial cluster. The adjustment of product structure is the primary issue, and the key to structural adjustment lies in technological innovation. At Wing Tai Group, staff are making final treatment of the tires produced. Wang Xiantao, chief engineer of Shandong Yongtai Chemical Industry Group Co., Ltd., said: "Run on the asphalt, and once you touch the road for a few laps, you must melt and melt.

Yongtai Tire is currently the only Chinese company that provides competitive tires for the world's automotive rally. The group has introduced a number of foreign technical experts. The production technology is comparable to the world's top brands Michelin and Pirelli. Wang Xiantao told reporters, "The product must go ahead of others. You can't say that you can make products that others can do. There is no point in adjusting your structure. You will always be behind others."

Among the tire companies in Shandong, nearly half of the small enterprises with an annual output of 500,000 or less accounted for these products, and these factories have been able to survive on small profits but also contributed to a serious overcapacity in the tire industry. The old tire company Xingyuan Group is gradually phasing out some backward products and introducing environmentally friendly production techniques to prepare for the expansion of exports. Song Wenguang, chairman of Xingyuan Tire Group Co., Ltd., said, “We must improve the production quality and grade of tires. There is no grade, and it is difficult to survive without scale. Our output and quality have gradually increased and have met the requirements of the world.”

To solve the excess production capacity, we must also implement the strategy of going global. At the beginning of the year, Linglong Tire was officially put into operation in Thailand. Currently, three tire companies in Shandong have established overseas factories. This not only avoids the increasingly stringent world trade barriers in recent years, but also transfers a large amount of production capacity. Zhang Hongmin, president of the Shandong Rubber Association, said: “Only through structural adjustment, we can eliminate some backward production capacity and increase the proportion of high-level tires, we can resolve the situation of overcapacity, and promote the increase in the production and proportion of green tires through structural adjustments. Improve the competitiveness of the international market."

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