The implementation of the special security case will immediately transfer the capacity of the tire joint venture overseas.

The special security case for Chinese tires will be formally implemented four days later. The impact of China's tire exports to the United States is gradually emerging. On September 22, news from industry and government agencies showed that a considerable number of joint-venture tire companies are gradually shifting their production bases in other countries to avoid the possible impact of the special safeguard case. On the other hand, the China Rubber Industry Association The Tire Club will hold the 2009 Tire Industry Conference in Nanjing on September 28th to discuss how to further respond to the impact of the tire special security case.

Joint ventures busy shifting production capacity overseas

According to the news just released by the Ministry of Commerce on September 22, the “tire special protection case” not only affected the development of the tire industry in China and the United States, but also forced other countries to change their business strategies at Chinese tire manufacturers. Hankook and Kumho intend to transfer their tire production capacity from China to the United States to other countries in order to avoid significant sales reductions. Currently, Hankook’s factory in Jiaxing, Zhejiang Province has exported 3.5 million tires to the United States in 2008, accounting for 12.5% ​​of the company’s production capacity in China. Kumho has three production bases in Nanjing, Changchun, and Tianjin. Last year, it exported to Tire It is 3.7 million, accounting for 12.3% of its production capacity in China.

However, the Ministry of Commerce stated that it is unlikely that Chinese enterprises will transfer production capacity overseas in the short term. The main reason is that there is basically no production base overseas.

The U.S. market is also the main sales destination for tires in Suzhou. According to news from the Ministry of Commerce, Suzhou tire exporters have planned to adopt two different measures to respond passively: on the one hand, to reduce tire production capacity, and to set up factories in Taiwan, Vietnam, Thailand, etc. in areas not covered by this US special security case. The use of transfer orders to avoid risks; the other hand, focus on opening up the domestic tire market, stop exports to the United States, to make up for domestic sales, and strive to reduce production and reduce staff.

When Chinese tire companies face difficulties, Southeast Asian countries have become more aggressive in attracting investment. According to information from the Ministry of Commerce, the United States imposed protective tariffs on Chinese tires and provided opportunities for Vietnamese tires to expand their exports to the United States. Customers sourcing in the United States will turn to markets such as Vietnam, Thailand, Indonesia and Malaysia to find sources.

Domestic tire companies negative growth year-on-year last year

"Now from the 26th day, the high tax rate for tyre special protection has been in effect for several days. The General Association is also paying attention to the further development of domestic tire companies." Yesterday, the insiders of the China Rubber Industry Association told reporters that in the United States, the American tires special protection After the case was passed, the China Rubber Association immediately proposed professional advice and countermeasures on the 16th of this month. The Tire Club will hold the 2009 Tire Industry Conference in Nanjing on September 28.

It is reported that before this, the China Rubber Industry Association tire branch has put forward a series of recommendations to deal with special security cases, including appealing to the Chinese government to increase tire export tax rebate rate; call for further expansion of domestic demand, and effectively increase the proportion of domestic tires to auto parts Calls on the government to reduce import tariffs on natural rubber in order to change the current export model of tire processing companies, and reduce the production costs of tire companies.

Statistics from the China Rubber Industry Association's tire branch, this year, the global financial crisis has brought great difficulties to China's tire manufacturing. From January to July, the major economic indicators such as tire output value, output, export, and sales revenue of 44 companies listed in the Tire Division statistics were all negative compared with the same period of last year, of which the delivery value of export tires fell by 13.2%. The year-round boom of the industry was significantly lower than in previous years. Once the implementation of the tire special protection case, it is estimated that there will be about 30 or so tire companies in the country cut or stop production, and the employment of nearly 100,000 workers will be affected.

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