Belt and Road Initiative becomes new driving engine for rubber & tire industry

Belt and Road Initiative is becoming a new economic growth point as well as driving engine for the rubber industry. Chinese rubber companies have also try to grasp the opportunity to go global.

In their participation into the initiative, the rubber industry exports tire technologies to help Belt and Road Initiative-related countries establish tire production companies.

The tire program in Uzbekistan is the first technology export program of China's tire company. As scheduled, Uzbekistan will see its first homemade radial tire on Sept. 1.

As time approaches, Poly Science and Technology Co., Ltd. and Beijing Research & Design Institute of Rubber Industry have been pushing forward the progress of the program.

Tire companies also respond to the Belt and Road initiative by establishing overseas plants.

In 2015, Sailun Jinyu Group, Linglong Group, Zhongce Group, and Sentury had built overseas plants.

Since 2016, a greater number of Chinese tire producers announced overseas plant establishment plans.

So far, the Belt and Road Initiative projects participated by China's rubber companies are of higher level and quality.

Yiyang Rubber and Plastic Machinery Group Co., Ltd. won the bids for providing banbury mixers, wire rope conveyor belts and flat vulcanizing units for the Uzbekistan program.

Linglong Tire's Thailand plant has completed construction for operation. The plant is equipped with the world's best production equipment, fully realized the integration of industrialization and informatization.

Sentury's Thailand plant constitutes automatic, intelligent, informative production lines, and the upcoming U.S. plant will be of higher level.

Wanli Tire is to construct an intelligent plant in the U.S., with higher degree of automation than its domestic flagship plant in Hefei, Anhui province.

The rubber industry finds out new economic and profit growth point through the Belt and Road Initiative.

An industry insider estimates that in 2017, the overseas sales of Chinese tire companies will make greater contribution to their overall sales.

Moreover, China's rubber machinery sector has also benefited from the Belt and Road Initiative.

Since 2016, Chinese rubber machinery companies contracted rubber machinery supply deals of over 3 billion yuan because of tire producers building overseas plants.

In 2017, many Chinese rubber machinery producers provide goods for overseas tire projects, and the value of their export delivery will increase further.