Supply-side structural reform boost tire industrial development: MIIT official

Deepen the supply-side structural reform is the only way to dissolve existing problems, break through the development bottleneck, and realize transformation and upgrade of the tire industry, said Pan Aihua, deputy director of the Raw Materials Industry Department, Ministry of Industry and Information Technology, at China Green Tire Safety Week 2017.

He shared its opinions on the development of tire industry from four aspects of the supply-side structural reform.

De-capacity the key task

Excess capacity is the overall contradiction constraining the development of traditional industry, the issue in tire industry is particularly obvious.

Pan stresses to make full use of market competition, exploiting the long-effect mechanism to eliminate outdated capacity, shut down enterprises with outdated production techniques, low-end products and security issues.

At the same time, MIIT will control new capacity, pilot capacity replacement mechanism, and keep or reduce the overall capacity.

High-end product the direction

Tire is consumer goods that face automaker and consumer directly.

Tire industry should accelerate R&D of tires with high-quality and performance, develop air radial tires, green radial tires, agricultural radial tires, and expand the category.

The producers should develop and apply gutta percha, halogenated butyl rubber, graphene, and low rolling resistant packing, super high strength and ultra high strength steel cord, highly dispersed white carbon black and its dispersed new materials, to provide raw materials for the development of green tires.

Pan hopes the tire industry to enhance quality management and increase service awareness, to create internationally renowned brands.

Great support to intelligent manufacturing

MIIT selected 11 enterprises to participate in the intelligent manufacturing pilot action in 2015 and 2016, including Sailun Jinyu Group and Qingdao Doublestar.

The production technique, energy saving and emission reduction, and production safety of the two firms have been improved significant after the intelligent reform.

This year, MIIT will continue the action and involve more excellent firms in the program.

In terms of smart logistics and e-commerce, MIIT encourages industrial associations, e-commerce businesses, and producers to set up e-commerce platforms together, to promote informatization development of tire logistics.

Pan also talks about tire producers joining in international capacity cooperation.

Last year, MIIT sent staff to the Vietnam plant of Sailun Jinyu Group for investigation with China Rubber Industry Association.

Pan said, tire producers are confronting a series of problems and challenges in launching international capacity cooperation under the guidance of the Belt and Road Initiative.

To address the problem, concerning authorities will enhance industrial organization, strengthen top-level design, and shape capacity cooperation strategic deployment with proper priority, distinctive features and strong competitiveness.