Wang Wenhao, general manager of domestic well-known tire company, Shuangqin Group Co., Ltd., participated in the “Interview of the First China (Shanghai) Listed Companies Corporate Social Responsibility Summit†on April 29, 2015, stating that overcapacity in the domestic tire industry is a reality. Mergers, acquisitions, combinations, and reshuffling are the next steps.
Industry statistics show that at present, there are more than 400 tire enterprises registered in China, and there are even more unregulated and unregistered small enterprises. The industry’s production capacity is far greater than the demand. "For example, TBR (all-steel radial truck tires), the current annual production capacity of about 130 million units, but the market demand is only 80 million units." Wang Wenhao said that the tire industry is now very competitive, low cost, competitive, can Companies that continue to innovate and develop will survive.
He explained that in recent years, Shuang Qiang has implemented the “going out†strategy and has formed five tire production bases in Shanghai Minhang, Jiangsu Rugao, Chongqing Shuangqiao, Anhui Wuwei and Xinjiang Urumqi. Xinjiang Base will increase its capital in 2014. In the future, Double Money will increase its distribution in the domestic and global markets through various means such as new construction and mergers.
Wang Wenhao also admitted that tires are a traditional industry with high energy consumption and high costs. In the next step, Double Money will focus on the development of mechanization, automation, intelligence, and informationization to reduce costs and improve efficiency.
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