China's tire industry seeks a gap and seeks to strengthen

At the 2011 General Assembly of the China Rubber Industry Association Tire Branch, the analysis of problems in the tire industry triggered by the Tianjin Jinhu incident became the focus of the conference. Finding problems, talking about gaps, making suggestions, and exchanging advanced management experience have become the main content of the conference. Participants actively discussed how to build quality and make China's tire industry truly big and strong.

Song Xianzhu, Deputy Director of the Department of Raw Materials of the Ministry of Industry and Information Technology pointed out that China has become the undisputed big producer and exporter in the world, but the tire industry also has the problem of “three highs”: raw material natural rubber has a high degree of foreign dependence, and 80% depends on imports; tire products are The dependence on overseas markets is high, with more than 40% of products exported; the share of foreign-owned companies in the passenger-tying market is high, accounting for about 65% of the domestic market. He demanded that the tire industry should actively implement the "Tire Industry Policy" to further seize the opportunity to adjust the structure, transfer methods, promote technological innovation, achieve breakthroughs in key technologies and enhance international competitiveness. He also said that the Ministry of Industry and Information Technology will continue to pay attention to the development of tire industry safety and actively study supporting policies.

According to Cai Weimin, secretary general of the tire division of the China Rubber Industry Association, during the "Eleventh Five-Year Plan" period, China's tire industry product structure has been accelerating, the meridianization rate has reached 84%, and the proportion of high-performance radial tires has increased dramatically; the level of process technology and equipment has increased substantially; The ability to innovate has been strengthened; both domestic and foreign markets have developed simultaneously; the capital structure has become increasingly diversified. In 2010, the production and operation conditions of the tire industry were generally good. The country’s tire output was 443 million, including 375 million radial tires; 45 member companies’ exports increased by 17.5%, indicating that the export decentralization strategy had achieved results. However, due to the skyrocketing price of natural rubber in the second half of 2010, the production cost of tire companies increased by about 50%, and the profits of the industry dropped significantly. In addition, the increase in tire inventory was greater than the increase in output and sales revenue, reflecting the rapid growth of the industry's development and the overcapacity problem.

Ding Yuhua, chairman of the tire division of China Rubber Industry Association and chairman of Triangle Group Co., Ltd., said that while affirming the development of China's tire industry, we must clearly recognize the gap with the international advanced level: First, the product gap. On the whole, the technological content and added value of local companies' products are low, and their competitiveness is obviously insufficient. For instance, in 2010, domestic production of passenger cars and light truck radial tires was 288 million, among which international brands accounted for about 65%. The main production scale was 15 inches and above; local brands were mainly concentrated in 12 to 14 inches. The second is the brand gap. In the U.S. market, the price of the internationally recognized brands of passenger cars with the same specifications is more than three times that of domestic brands. Even if they are OEM products, the price is more than half that of the domestic products. The third is the gap in innovation capabilities. Local companies have long focused their energy and financial resources on replicating homogenized products. The level of R&D software and hardware is relatively low, basic research and applied research have a wide gap, product development cycle is long, and informationization is poor. Fourth, the industry concentration gap. The pattern of “many but not strong, small and scattered” tire enterprises in China is extremely serious, and the market share of the top ten companies in the domestic industry is only about 30%. In recent years, the investment boom in the tire industry has spread throughout the country. According to incomplete statistics, there have been more than 40 new projects in China in 2010. The fifth is the difference in business philosophy. Many local companies have long struggled with price as an important means of competition, rather than making efforts to increase technical content and brand building, resulting in increasing international trade friction in recent years.

Fan Rende, president of the China Rubber Industry Association, pointed out that China's tires must be bigger and stronger and must implement a strategy for strengthening the country. He said that the occurrence of the Tianjin Kumho incident further reflected the importance of strengthening corporate management. Since the reform and opening up, the tire industry has undergone great changes, and now some products have reached the world's advanced level, but at the same time we should also see the existence of gaps in the stability and homogeneity of domestic products; some large companies pay more attention to management. However, there are also problems with the company. For example, there are still problems with day and night shifts, holidays, and peacetime. The Tianjin Kumho incident occurred because management was chaotic and the industry must take warnings. In the industry, modern enterprise management such as 6S should be promoted, management should be implemented, and human factors should be reduced so as to better ensure product quality. He stressed that the tire industry should also vigorously promote the information management, such as soft control shares, Aeolus tires and other research and development of tire life management system, the implementation of visual management of tire production, can trace the entire process of each step of the tire quality information. By informatizing the traditional industries and implementing modern enterprise management, the quality of tire products can be guaranteed. He believes that during the "12th Five-Year Plan" period, China's rubber industry through the implementation of the strategy of strengthening the country, will greatly reduce the gap with the world's rubber industry developed countries, for the "Thirteenth Five-Year Plan" to become the world's largest rubber industry laid a solid foundation.

Ding Yuhua suggested that foreign companies should learn new practices, establish tire product safety and environmental protection technical regulations and standards system, improve market access thresholds, implement graded management of tire products, focus on measuring the environmental performance of tires, promote technological innovation, and guide scientific consumption. Approval of new projects will no longer use production scale as a major threshold, and it will set new standards in terms of tire production technology, energy consumption, and environmental protection, as the main criteria for approval of project construction; tire companies must have tire retreading in addition to new manufacturing capabilities. Capacity and management of waste tire recycling management, while eliminating the old tire import code; in addition, we must establish a new productivity model featuring “low energy consumption, low pollution, and low emissions” with the same amount of time and the same amount of Resources and energy consumption, the same human and material resources, and production of products with higher quality, better performance, more quantity, and less damage to the environment.

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