China TOP 10 tire events in 2015

It seems thatChina’s tire industry has entered into corner in 2015.

Anti-dumping and anti-subsidy duties fromU.S., anti-dumping duty from Eurasian Economic Commission, bankruptcy of Deruibao Tire and Beijing Capital Tire,China’s tire industry has never been in such a complicated circumstance.

However,China’s tire industry is trying to break through via building factories overseas, intellect manufacture etc., which may beChinatire industry’s hope in the future.

Tireworld.com.cn has evaluatedChina’s Top 10 tire events, as following:

China lifts NB import duty

China lifted import tax of natural rubber from 1500 yuan/ton to 1800 yuan/ton since January 1 2015.

Analysts saidChinahopes to raise natural rubber price through lifting tax, but increased tire manufactures’ cost in the end.    

Deruibao andBeijingCapital tires bankrupt

Deruibao Tire announced that the company has fell through on February 9. And Beijing Capital Tire declared bankruptcy on Oct.29. 

Beijing Capital Tire has ever been listed in Top 75 Tire Manufacturers in the world, and posted N0.15 inChinese tire industry.

Its bankruptcy brought huge shock toChina’s tire industry.

Linglong Tire builds up factories overseas

First overseas production base ofChina’s Linglong Tire inThailandhas been entered into operation on May 28 2015.

Double Star Tire’s joint venture with Kazakstan has been approved by the local government in November. This is Double Star Tire’s first overseas production base.

Besides Linglong tire and Double Star Tire, Hangzhou Zhongce, Sentury, O’green, Sailun Jinyu also built up overseas factories so far.

Tuhu.com raised up

With auto e-commercial companies fell down one by one, Tuhu.com raised up, survived from severe auto e-commercial after-service market.

Tuhu.com completed 100 million dollars of C round of financing in June, and raised 50 million dollars of C+ round of financing later.

U.S. anti-dumping and anti-subsidy duty

U.S. International Trade Commission decided to collect anti-dumping and anti-subsidy duty on Chinese passenger tire and light truck tire, which forced a lot of Chinese tire manufacturers to give up American market, even Chinese leading tire maker Hangzhou Zhongce Rubber.

ChemChina buyouts Pirelli Tire

China National Chemical Corporation completed entire purchase of Italian tire maker Pirelli in August 2015.

Analysts said ChemChina’s buyout enhanced Chinese auto part companies’ confidence walking towards international market.   

Toyo Tire turn against with Chinese dealers

In August 2015, dozens of Chinese tire dealers gathered in front of Toyo Zhucheng factory and required Toyo tire to pay back their advanced payment for Toyo problem tires.

However, Toyo Tire refused.Chinese tire dealers doubted that Toyo Tire plan to quit Chinese full-steel tire from not taking responsibility on tire after service.  

Compound rubber standard reform

China implemented new “Compound rubber Standard”since June 1 2015.

The new standards required raw rubber could be no more than 88% in compound rubber, much stricter than previous 95-99.5%.

Chinese tire companies said that the new standard increased their cost, and result in more deficit in tire industry, but rubber companies said that the new standard could protect domestic rubber industry and was good for rubber production’s quality.

GITI Chongqingfactory closed

GITI Tire's board decided to close itsChongqingfactory since November 21, 2015.

Besides GITI, other two factories of Hankook tire and Double coin tire both decided to shut down production.

One falling leaf is indicative of the coming of autumn. DistressedChongqingtire makers seems showing Chinese tire industry were under heavy pressure now.  

EEC collects anti-dumping tax on Chinese heavy truck

On Nov.24, Eurasian Economic Commission (EEC) official decided to impose 14.79% to 14.79% of anti-dumping duties on truck tires imported fromChinafor five years.

It is said that EU is also under consideration to take anti-dumping investigation on Chinese tires. If does, Chinese tire export will face further squeezed again.