How Xingyuan Tire survives industrial reshuffle
Broad industrial integration was the trend in the tire sector in Dongying, Shandong province, in 2017.
Xingyuan Group's acquisition of Shengtai Group was a typical case.
The acquisition received great support from local government. Will Xingyuan Tire survive the upcoming round of industrial reshuffle? Tireworld.com.cn had a face-to-face conversation with executives of the group.
Release of timetable for going public
Song Wenguang, board chairman of Xingyuan Tire Group, said the tire sector in Dongying is ascending and it may spend a year to reach the peak, but it has to keep climbing, or it will fall back.
Currently, Xingyuan Group is undergoing an inter integration.
The quality assets will go public as planned. Xingyuan Group will be divided into three parts: listed sector, unlisted sector, and custodial sector.
The custodial sector refers to Shengtai Group and other tire enterprises might be entrusted to Xingyuan Group in future.
The listed sector mainly refers to Shandong Xingda Tire Co., Ltd., a subsidiary of Xingyuan Group that dedicates to high-end engineering tires.
Wang Mingquan, general manager of Xingda Tire, said as the core asset of Xingyuan Group, Xingda Tire is scheduled to going public in the coming 3-5 years.
Introducing in third-party specialists
Whiling setting up the development goals, Xingyuan Group realized its pitfalls in modern enterprise system.
According to Wang, Xingyuan Group has introduced in two external technical groups to enhance R&D capacity.
In addition, the group has also building up its financial and legal teams, and cooperated with a renowned domestic human resource enterprise to regulate human resource management.
Wang said going public is not their ultimate target but to examine whether the enterprise operates well.
In addition, the tire producer reconstructed its brand planning.
In the tire sector in Shandong, Xingyuan Tire is a classic enterprise. Whether it will survive the industrial reshuffle, everyone is watching.
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