Tire Industry will integrate backward production capacity or phase out in 2015
After decades of development, China has already become the world’s largest tire producer by relying on the traditional development model of investment expansion, low-level duplicated construction, and quantity expansion. However, it also caused relatively excess production capacity in the tire industry and homogenization of low-end products. Serious situation. The following is an analysis of the tire industry policy and status quo.
Following the preliminary ruling by the US Department of Commerce that China has raised tariffs with dumping and subsidies for light trucks and passenger tires exported to the United States, on January 29, the Ministry of Commerce of the People's Republic of China publicly reacted at a press conference and held the preliminary ruling of the United States. The result is not fair.
“Most Chinese tire companies are judged to be subject to more than 30% tariffs.†An expert from the Tire Branch of the China Rubber Industry Association (hereinafter referred to as the Tire Branch) told reporters that “this will bring significant impact on China’s tire trade with the US Strike."
According to the above-mentioned tire branch experts, the United States’ “double opposition†will affect China’s share of export tires by more than 30%, and currently 40% of domestic tires are exported. In other words, once the verdict is established, 12% of China's domestic tires will face slow-moving risks due to their loss of price advantage, which will bring a major blow to the domestic tire manufacturing industry that was originally in excess capacity.
On February 3, 2014, as one of the mandatory responding companies for the US “Double-Counter†investigation, the head of the Legal Department of Saiwan Jinyu Group Co., Ltd. (hereinafter referred to as “Sailor Jinyuâ€) told reporters: “This is Our export industry is a very serious challenge."
China's tire companies are often heavily taxed
Affected by factors such as the slowdown in the growth of sales of domestic passenger vehicles and the slight decline in sales volume of commercial vehicles, tire companies in 2014 have already experienced cold spells. “In 2014, the utilization rate of the domestic tire industry was still less than 60%, which is already very bad.†The above-mentioned tire branch experts told the “Daily Economic News†reporter.
In June 2014, the United States launched a "double counter" investigation is tantamount to worse. "Daily Economic News" reporter learned that in August 2014, Shandong Yongsheng Rubber Group Co., Ltd. (hereinafter referred to as Yongsheng Rubber), which was selected as the "dual-anti-" investigation for mandatory respondent company, was announced to withdraw from the investigation in October 2014. . Therefore, in the preliminary ruling, Yongsheng Rubber was ruled to impose a tariff of 87.99%, which means that its export business to the US will basically stop.
According to the report of Sai Jinyu, in the initial ruling on January 22, the racing wheel Jinyu was sentenced to collect 29.01% anti-dumping tax and 12.03% countervailing duty, and the total tax rate was as high as 41.04%. Previously, the revenue in the U.S. market accounted for about 10% of the total revenue of the racing wheel Jinyu, and the profit accounted for 13.36%.
In addition, among the Chinese tire companies that accepted the “Double-Country†survey, more than 20 companies were set to collect a national tax rate of 87.99% by the initial judgment, and more than 60 companies were judged to have collected a “different tax rate†of more than 30%.
“State-owned tire companies are basically ruled to collect national tax rates.†The above-mentioned tire branch experts told reporters, “This is not the final verdict, but it is difficult for us to have optimistic expectations.â€
The reporter learned that tire companies with certain strengths, including Aeolus shares, Sai Jinyu, and Linglong tires, have already set up factories overseas and have made up for the shortfall in US sales by shifting their export operations to overseas factories. However, in the short term, overseas production capacity will not be able to meet, and at the same time, the excess capacity of the domestic tire industry will also face further deterioration.
Tire industry production overseas transfer accelerated
As early as 2009 to 2011, the United States also imposed restrictions on China's tire tariffs, known as "tire special security case." According to the reporter's understanding, after the "tire special security case", some of the more powerful tire companies have begun to set up factories overseas.
The above-mentioned Jinyu legal department of the racing team told reporters that the race will gradually transfer its operations to the United States to Vietnamese factories in order to circumvent the possible "double counter" tariffs.
It is understood that the number of tires for the 2013 racing wheel Jinyu exports to the United States is 3.41 million. To further meet the demand, the production capacity of the racing wheel Jinyu Vietnam plant has been expanded from 3.5 million to 7 million/year at the end of 2014. In addition, the first stage project of Linglong Tire in Thailand was put into operation at the end of February 2014. The annual output was 2 million, and the second phase of the project has also been filed.
In fact, there is little room for exports of American tires to other countries. “The market that can be replaced is the European Union,†said the above-mentioned tire sub-committee experts, but the European Union's tire labeling regulations that began in 2012 strictly regulate the fuel efficiency, rolling noise, and wetland grip level of tire products sold in the European Union. Less businesses are rejected.
“Only large-scale tire companies with relatively strong technical capabilities can meet standards,†said the above-mentioned tire branch experts. “It is very difficult to allocate these production capacities to the domestic market.†He said that because many export tires have different standards and specifications from those in China, the United States It is difficult to transfer surplus production capacity to domestic sales due to “double reverseâ€. “The brand strength and quality of Chinese tire companies are also difficult to compete with joint venture brands and foreign brands in China.â€
Therefore, the relevant experts of the above-mentioned tire association believe that the consolidation of the tire industry and the elimination of backward production capacity in 2015 will be imperative.
Following the preliminary ruling by the US Department of Commerce that China has raised tariffs with dumping and subsidies for light trucks and passenger tires exported to the United States, on January 29, the Ministry of Commerce of the People's Republic of China publicly reacted at a press conference and held the preliminary ruling of the United States. The result is not fair.
“Most Chinese tire companies are judged to be subject to more than 30% tariffs.†An expert from the Tire Branch of the China Rubber Industry Association (hereinafter referred to as the Tire Branch) told reporters that “this will bring significant impact on China’s tire trade with the US Strike."
According to the above-mentioned tire branch experts, the United States’ “double opposition†will affect China’s share of export tires by more than 30%, and currently 40% of domestic tires are exported. In other words, once the verdict is established, 12% of China's domestic tires will face slow-moving risks due to their loss of price advantage, which will bring a major blow to the domestic tire manufacturing industry that was originally in excess capacity.
On February 3, 2014, as one of the mandatory responding companies for the US “Double-Counter†investigation, the head of the Legal Department of Saiwan Jinyu Group Co., Ltd. (hereinafter referred to as “Sailor Jinyuâ€) told reporters: “This is Our export industry is a very serious challenge."
China's tire companies are often heavily taxed
Affected by factors such as the slowdown in the growth of sales of domestic passenger vehicles and the slight decline in sales volume of commercial vehicles, tire companies in 2014 have already experienced cold spells. “In 2014, the utilization rate of the domestic tire industry was still less than 60%, which is already very bad.†The above-mentioned tire branch experts told the “Daily Economic News†reporter.
In June 2014, the United States launched a "double counter" investigation is tantamount to worse. "Daily Economic News" reporter learned that in August 2014, Shandong Yongsheng Rubber Group Co., Ltd. (hereinafter referred to as Yongsheng Rubber), which was selected as the "dual-anti-" investigation for mandatory respondent company, was announced to withdraw from the investigation in October 2014. . Therefore, in the preliminary ruling, Yongsheng Rubber was ruled to impose a tariff of 87.99%, which means that its export business to the US will basically stop.
According to the report of Sai Jinyu, in the initial ruling on January 22, the racing wheel Jinyu was sentenced to collect 29.01% anti-dumping tax and 12.03% countervailing duty, and the total tax rate was as high as 41.04%. Previously, the revenue in the U.S. market accounted for about 10% of the total revenue of the racing wheel Jinyu, and the profit accounted for 13.36%.
In addition, among the Chinese tire companies that accepted the “Double-Country†survey, more than 20 companies were set to collect a national tax rate of 87.99% by the initial judgment, and more than 60 companies were judged to have collected a “different tax rate†of more than 30%.
“State-owned tire companies are basically ruled to collect national tax rates.†The above-mentioned tire branch experts told reporters, “This is not the final verdict, but it is difficult for us to have optimistic expectations.â€
The reporter learned that tire companies with certain strengths, including Aeolus shares, Sai Jinyu, and Linglong tires, have already set up factories overseas and have made up for the shortfall in US sales by shifting their export operations to overseas factories. However, in the short term, overseas production capacity will not be able to meet, and at the same time, the excess capacity of the domestic tire industry will also face further deterioration.
Tire industry production overseas transfer accelerated
As early as 2009 to 2011, the United States also imposed restrictions on China's tire tariffs, known as "tire special security case." According to the reporter's understanding, after the "tire special security case", some of the more powerful tire companies have begun to set up factories overseas.
The above-mentioned Jinyu legal department of the racing team told reporters that the race will gradually transfer its operations to the United States to Vietnamese factories in order to circumvent the possible "double counter" tariffs.
It is understood that the number of tires for the 2013 racing wheel Jinyu exports to the United States is 3.41 million. To further meet the demand, the production capacity of the racing wheel Jinyu Vietnam plant has been expanded from 3.5 million to 7 million/year at the end of 2014. In addition, the first stage project of Linglong Tire in Thailand was put into operation at the end of February 2014. The annual output was 2 million, and the second phase of the project has also been filed.
In fact, there is little room for exports of American tires to other countries. “The market that can be replaced is the European Union,†said the above-mentioned tire sub-committee experts, but the European Union's tire labeling regulations that began in 2012 strictly regulate the fuel efficiency, rolling noise, and wetland grip level of tire products sold in the European Union. Less businesses are rejected.
“Only large-scale tire companies with relatively strong technical capabilities can meet standards,†said the above-mentioned tire branch experts. “It is very difficult to allocate these production capacities to the domestic market.†He said that because many export tires have different standards and specifications from those in China, the United States It is difficult to transfer surplus production capacity to domestic sales due to “double reverseâ€. “The brand strength and quality of Chinese tire companies are also difficult to compete with joint venture brands and foreign brands in China.â€
Therefore, the relevant experts of the above-mentioned tire association believe that the consolidation of the tire industry and the elimination of backward production capacity in 2015 will be imperative.
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