One Fifth Chinese Tire producers Lose Money
Among the 40 Chinese tire producers monitored by industry association, around 20% producers lost money in 2016.
Six out of 31 domestic tire companies suffered losses of 447 million yuan, while two out of nine foreign companies lost 135 million yuan.
Statistics show that the value of China’s tire output, export delivery, sales and profits dropped 14.62%, 16.52%, 15.37% and 22.22%, respectively.
In addition, six tire companies closed down for outdated capacity, environmental and cash flow issues; while tire projects of nine firms suspended constructing due to cash flow, environmental and land issues.
Looking backward, tire companies had lived an easy life, however, it will be a blessing for many tire companies to be able to survive current conditions.
But how long could they persist?
- Tireworld Insight: Domestic tire makers eye overseas expansion
- Tireworld Insight: Price disparity severe between China's rubber exports and imports
- Tireworld Insight: China tire exports dependent on US market performance
- Tireworld Insight: SHFE rubber expected to move in tight range in short-term
- Tireworld Insight: Rubber futures to test near-term resistance at 15,000 yuan/tonne
- Tireworld Insight: China’s tire industry on track of rapid growth
