Shandong continues eliminating outdated tire capacity

Shandong province released on Feb. 22 the Circular of Shandong Provincial Government on Publishing the Implementation Plan for Replacing Old Growth Drivers with New Ones in Shandong Province.

Tire, rubber and chemical sectors have been involved in the government document.

According to the circular, Dongying city should eliminate outdated capacities in the oil refining and tire sectors, and create a green recycling demonstration base of high-end petrochemical industry and an urban transformation and development zone based on petroleum.

Yantai, Zibo, Zaozhuang, Weifang and Taian should develop high-end chemical industry, reform chemical industry, and eliminated outdated capacity.

The key sectors are special rubber, special fiber, special engineering plastic, advanced new materials, and high-performance compound materials, and the province aims to create a batch of industrial chains with features.

The circular puts forward a timetable for the province: making efforts to boost the added value of high-end chemical industry to 510 billion yuan, accounting for 5.1% of the province's gross regional production, by 2022.

It also aims to move 40% local chemical enterprises into industrial parks.

The circular also indicates to make comprehensive use of water resources and use desalinated sea water in coastal heavy and chemical industrial parks.

Zhang Hongmin, chairman of Shandong Rubber Association, says eliminating outdated capacity is a good news for the tire industry and will stimulate large enterprises accelerating transformation and upgrade.