400 Million Sold To Shuangwang Group, Yongtai Officially Closed!

- Mar 21, 2019-

According to local news from Shandong Dongying, the bankruptcy auction of Shandong Yongtai Group Co., Ltd. was finally settled, but the purchaser and the winning bid amount were really unexpected. Shandong Shuangwang Rubber Co., Ltd. took 403.8 million yuan from competitors such as Huasheng and Santai. The price won the ownership of Yongtai.

Local industry sources said that a total of five local tire companies participated in the bidding. The bidding of Shuangwang Rubber was unexpected. The Yongtai Group, which had been infinitely beautiful, attracted a lot of people with the “selling” of 400 million yuan.

The person in charge of Shuangwang Rubber said that the company is currently focusing on the production of semi-steel radial tires with an annual production capacity of 12 million pieces. The Shuangwang Rubber will win the Wingtai Group's all-steel and semi-steel tire production lines. It is extremely advantageous to expand production scale and enrich product categories.

Shuangwang Rubber's main business includes automobile tires, wheels, gasoline and mechanical processing. It is said to be the most complete group company in Guangrao County's automobile industry chain. The company has more than 5,000 employees and its car wheel brand. Lu Yusitong ranked sixth in the country in 2018, and its comprehensive strength ranks among the top ten in China's car aluminum wheel industry.

The official curtain call of Yongtai Group also triggered the industry's thinking. The company's total assets reached 3.5 billion yuan at the peak, covering an area of 800 acres, with an annual production of 1.5 million sets of all-steel radial tires and 6 million semi-steel radial tires. The ability to supply 180 million kwh and continuously selected the list of the top 75 global tire companies.

Some industry insiders said that Yongtai Group can be said that “Chengye Xiaohe defeated Xiaohe”. The company also invested heavily in auto parts, real estate, machinery, new energy and other industries outside the main business. The rapid expansion of the industry has indeed accelerated The company's growth and development, but also buried the hidden danger of "bloody", eventually Yongtai due to the capital chain breaks in a fierce competitive environment.