Formally Landed! The Tire Industry Will Usher In The Strictest Control In History

- Nov 13, 2018-

On November 5th, the Shandong Provincial Government officially announced the “Implementation Plan for Accelerating the High-Quality Development of the Seven High-Energy-consuming Industries”. The document pointed out that Shandong will force the backward production capacity market to clear the market, and drastically promote the adjustment of the tire industry layout. Resolutely eliminate enterprises that take high energy consumption routes.

Capacity added or become "empty talk"

The Shandong Provincial Government stated that the adjustment of the seven traditional high-energy-consuming industries such as tires, steel and refining is imminent. It is necessary to achieve a world-class level in the Shandong tire industry through large layout and large optimization. In the future, the tire industry should be based on high-end development. Strict control of production capacity and production.

The document clearly states that the total capacity control policy will be established for the province's tire industry. In principle, the total tire production capacity will remain basically unchanged until 2020, with emphasis on efforts to reduce the province's bias tire production (from the current 35 million). The article is reduced to 20 million pieces. In the future, the production of high-end, high value-added, high-performance tires will be controlled.

China Rubber Network learned that the documents issued by Shandong Province pointed out that the relevant departments at all levels should not file the over-capacity tire product projects, and should not handle the procedures of land supply and EIA approval, and resolutely prevent low-level redundant construction and reasonable control of production capacity. scale.

wide-section, tubeless and long-life radial truck tires will become the new growth point of the industry. A major breakthrough in tire development and application.

In the published policy of supporting outstanding enterprises, it can be seen that Shandong Province will actively strive for national favorable policies for outstanding enterprises, and will also support the transformation and upgrading of enterprises to the maximum extent in fiscal and taxation policies.

In terms of the most important funds, Shandong Province will formulate a “white list” of tire companies, guide banking institutions to give priority to financing financing for large enterprises, and reduce corporate financing costs, leverage ratios and shorten financing chains in various ways. Tire companies with intensive and long payback periods are full of “gospels”.