Multinational tire giant accelerates capacity expansion in China

According to statistics, in 2010 China's auto production and sales exceeded 18 million vehicles, ranking first in the world. According to statistics, as of the end of August 2011, the number of motor vehicles in the country reached 219 million vehicles. Among them, the car ownership has reached 100 million. The striding progress of China's auto industry has directly driven the development of China's tire industry. By the end of 2010, there were more than 440 tire manufacturing companies in China. China produced 776.34 million rubber tire tires, a year-on-year increase of 19.8%. In the first half of 2011, the growth of the tire industry in China has slowed down, but it is expected that the tire production in 2011 can still increase by 6%.

The huge domestic market potential has attracted international tire giants. Judging from the current market conditions, the top 10 tire companies in the world have invested in factories in China. Companies such as Michelin and Bridgestone have not slowed down their investment in China after the occurrence of the tire special security case. In 2010, Michelin spent US$1.4 billion to increase its investment in the Shenyang plant. In 2011, Michelin started contact with Huayi Group and Shuangqin Group and plans to establish a joint venture. US Goodyear invested $500 million in its Dalian plant to introduce a commercial vehicle tire production line. In December 2010, Hankook Tire confirmed its third factory in China in Chongqing. The company's main passenger car tires and truck and bus tires have a total investment of 950 million U.S. dollars. It officially started in 2011 and is expected to be completed and put into operation by the end of 2015.

Champ Consulting chemical industry analyst pointed out that the expansion of foreign-funded companies in the Chinese market stems from the hot market in China's tire market in the past two years, but also led to fierce competition in the domestic market, but at the same time, also promote domestic domestic tire production enterprises to improve production technology .

At the same time, the state has also introduced some policies to regulate the development of China's tire industry, improve the level of industry competitiveness, and improve product performance. In September 2010, the “Tire Industry Policy” promulgated by the Ministry of Industry and Information Technology mentioned: It is planned that by 2015, the radialization rate of domestic passenger tires will reach 100%, the radialization rate of light-duty truck tires will reach 85%, and the radialization rate of heavy-duty trucks will reach 90. %.

According to a report released by the Shangpu Consulting, it is pointed out that although the current growth trend of China's auto industry has been slowed down, the current state of the country's efforts to develop new energy vehicles can still bring significant profits to the tire industry.

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