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General Science Technology enters express lane for development

Bian Yabo, board secretary of Jiangsu General Science Technology Co., Ltd. accepted an exclusive interview by during the TIRE Expo 2017.

Significant changes after IPO

General Science Technology went public last Sep. 19.

Bian commented that General Science Technology had entered the express lane for the development since then.

The tire producer abandoned the unified brand strategy in the past and restructured the business departments according to brand.

Bian said the company hopes the brands to make differences in the future, so they will be able to target at different market segments, and help the development of the entire company.

It also actively promoted the progress of intelligent manufacturing projects.

It announced in Aug. to invest 1.2 billion yuan in constructing a three-phase project with capacity of 1.2 million sets of all-steel tires.

Bian disclosed that the new factory is under early preparation.

We will make it a flagship project in the field of all-steel tire intelligent manufacturing in China, said Bian.

Insisting in differentiated strategy

While mentioned about differentiated strategy, we must talk about General Science Technology’s short-distance industrial and mining tire, which is proposed by the producer in 2007 during an investigation in the orefield.

It started to promote short-distance industrial and mining tires in 2008, when the central government inputted four trillion yuan to drive economic growth. The tire model was soon widely used in orefields.

However, they discovered after a while that although it has five tire brands, none of them are mining vehicle tires, and there is little difference among them.

To further enhance product competitiveness, the company tailored special development orientations for each brand according to their features.

Environmental protection a necessary obligation

In the first half of this year, General Science Technology’s operating revenue totaled 1.74 billion yuan, up 14.67% year on year; while the net profit was 64.38 million yuan, down 22.79%.

Bian said in the second quarter, raw material price hike generated heavy pressure on tire producers.

He said Chinese enterprises need to enhance brand premium and innovative capacity to gain greater market share in domestic and international markets.

He also said that General Science Technology attached much attention to environmental protection and it is boosting the establishment of clean, green production system.

Green and environmental protection is the development orientation of tire industry and a tire producer should take up the social responsibility.