Shandong eliminates large number of tire capacity

Shandong province has released the name of firms with capacities being eliminated during the 2011-2015 period.

The province eliminated tire capacity of about 20 million annually, including a variety of categories ranging from semi-steel radial tire, bias tire, tire tube and motorcycle tire.

According to the provincial bureau of statistics, by the end of last Nov., the province eliminated 14 tire producers and its tire capacity utilization increased to 92.6% to 65% by the end of 2012.

As a major producer of tires, Shandong issued various policies facilitating the transformation and upgrade of its tire industry.

The province planned to eliminate all-steel tube radial tire capacity of 15 million, bias tire capacity of 12 million by the end of 2017, and to eliminate all-steel tube radial tire capacity of 30 million, bias tire capacity of 20 million by the end of 2020.

Generally, Shandong no longer approve, register new projects with overcapacity issues since 2014.

Zhang Hongmin, head of Shandong Association of Rubber Industry, said eliminating outdated capacity is necessary for an industry to transform and upgrade, new tire projects have to replace the outdated ones.