During the Spring Festival, most tire companies busy working overtime to produce a change in scene, in February 10 ahead of the
holiday. Under the structural surplus production capacity, trade frictions and other multiple pressures, the tire industry ranks
high inventory, low profits, weak demand. RUBBER industry experts in an interview with reporters said that to resolve the current
conflicts, the realization of China from the tire manufacturing power steering power, mergers and acquisitions is the only way.
The next few years, mergers and acquisitions will become the trend of the development of the tire industry.
Industry will now Ebb Tide
China’s tire production capacity of serious structural surplus is an indisputable fact that, according to China Chemical Equipment
Association through equipment procurement projections to 2014 to reach a total capacity of steel tire more than 180 million units,
semi-steel tire total capacity of more than 600 million units, while 2014 annual sales of less than 110 million steel tire cover,
semi-steel tire approximately 400 million units. China’s tire production capacity utilization rate was significantly lower in the
next few years, the low-end tires will face greater pressure to the capacity.
In this case, China’s tire industry is clearly no longer follow the old path of expansion expansion. Central and local government
to fully recognize this point, the introduction of the tires access regulations, and begin implementation. Local government to
attract investment more rational, not only incentives and conditions gradually reduced or eliminated, and the enterprise
environment protection and energy requirements more stringent. In early 2014, for example, the Shandong provincial government in
principle “to resolve serious excess capacity contradictory opinions”, the tire industry has been included in the Shandong
Province, industry overcapacity.(http://www.lubonchem.com)