China's tire exports need new directions

The biggest victims of the financial crisis are often some emerging market countries, especially countries that export to stimulate economic development. In recent years, China's tires have formed nearly 40% of the export pattern. The US subprime mortgage crisis is a major test for the Chinese tire industry and is also a new challenge and opportunity.

The alarming growth rate of the Chinese tire industry is driven by the growing demand for tires made in China in the international market, especially in North America. According to statistics of China Rubber (9085, -105.00, -1.14%, bar) Industrial Association Tire Branch, 34 domestically owned tire companies, in 2007, the export volume of radial tires increased by 52.2% over the previous year. In recent years, the rapid development of Asian economies, led by China, has stimulated the sales of automobiles in emerging markets in China and India, and the rapid growth of exports from western countries to tire manufacturers in the region, making the Asian region, centered on China, a hot spot for the world tire industry. And tire manufacturing center.

However, the impact of the subprime crisis on China's tire industry has already emerged, and China's tire exports have fallen sharply. According to statistics from China Rubber Industry Association Tire Branch, the tire export volume from July to September this year has a declining trend compared with the previous year. Tire branch statistics also show that in September this year, 14 tire companies have suffered losses, the loss reached 33.3%, and finished goods inventory reached a record 42.3%, which is obviously a sign of excess capacity.

Faced with the rapid changes in the economic environment at home and abroad, some tire companies will inevitably be eliminated due to their inability to adapt. Only by taking advantage of the opportunities for transformation, upgrading, and innovation will it be possible for companies to settle the crisis. Increasing brand building, accelerating technological innovation, and increasing product added value will become the consensus of most companies.

Finding emerging markets has also become a “cold” way for tire companies. With the declining trend of European and American markets, the new direction of “Made in China” to the world will gradually shift to emerging markets represented by countries and regions such as South America, the Middle East, Russia, Africa, and ASEAN. The three giant tire giants, which account for more than 50% of the global tire market, have begun a new round of expansion in China, and they have undoubtedly extended their reach into the field of commercial vehicle tires. “The threat of foreign brand tires for self-owned brand tires is increasing.” People from the China Rubber Industry Association’s marketing professional committee are concerned that since the 1990’s, foreign tire brands have entered China’s impact on the national tire industry, the self-owned brand tire companies are facing second place. The crisis.

In late June, Goodyear officially announced that it will invest US$500 million to expand its production base in Dalian. At the beginning of July, German Continental Tire also stated that it plans to invest 180 million euros in Hefei to build tire and passenger vehicle tire production bases, and plans to produce 4.25 million semi-steel radial tires per year.

While expanding the production of foreign brands, they are also increasing the layout of parts and components networks and seizing replacement market share. Michelin just announced at the end of June that the 24-hour roadside assistance service plan launched in 2006 has so far attracted 500,000 customers. Only on this item, Michelin not only collected data from 500,000 high-end car customers, but also increased 1 million tire sales.

For the recent world tire giants have expressed that they will shift their business focus to China and increase their investment in production, procurement and marketing networks. The industry believes that such a global offensive strategy covers the upstream and downstream industries and will cause the development of domestic enterprises. huge stress.

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