Not long ago, Shandong, a tire-producing province, held a technical seminar for tire companies. The "Tire Industry Policy" (hereinafter referred to as "Policy") was repeatedly mentioned at the conference. Obviously, the introduction of this policy has added to the urgency of upgrading technology. Since the introduction of the policy for two months, the company has brought a lot of changes in philosophy.

Zheng Yongxiang, vice president of the Shandong Rubber Industry Association, believes that the "policy" is causing the tire industry to reshuffle and lay out. At present, a large number of tire companies in Shandong are below the scale. Even with the above-scale enterprises, of the 292 million tires produced in 2009, there are only 86.87 million radial tires. Only in the radialization rate, it is very difficult to meet the requirements of the "policy". For some enterprises that make a living out of backward production capacity, it is inevitable that they will be hit hard by the “policy”.

Regarding the conditions for entry of tire companies, the "Policy" made such a provision: the newly-built, rebuilt or expanded heavy-carcass radial tire project should have an annual production capacity of 1.2 million or more; and the light-duty truck radial tire and passenger car radial tire project should once form a production capacity. Should reach an annual output of more than 6 million; load, light load, car radial tire mixed type project, single species production capacity must also meet the above requirements; engineering fetal project a production capacity should reach an annual output of more than 30,000. Apart from the relocation and technological transformation of existing enterprises, no new or expanded tire projects will be completed before the end of 2011.

"The implementation of the "Policy" will be a timely rain to stop the continued overheating of the tire industry in China." Zou Yongzhi, general manager of Huanan Tire & Rubber Co., Ltd., said that the "policy" stipulates that access conditions are appropriate and necessary. The tire industry is a scale economy, a scale of less than 6 million semi-steel tires or less than 1.2 million sets of all-steel tires. It is not conducive to the development of enterprises from the aspects of economy, energy conservation, and environmental protection.

For a long time, due to the lack of threshold restrictions in the tire industry, blind investment in the tire industry has been there, from time to time, "all steel tire heat", "engineering tire heat", "semi-steel tire heat." In Guangrao alone, there are dozens of tire companies. There are currently more than 60 million sets of radial tires and more than 50 million sets of production capacity. The blind investment in radial tires has caused serious excess production capacity and huge waste of funds. According to statistics, the total production capacity of China's all-steel tires is 90 million sets, and the scale of construction is about 30 million sets. China's all-steel tire production capacity has surpassed domestic demand for all steel tires (about 60 million sets) nearly doubled. Semi-steel excess capacity is also very obvious. Therefore, it is very necessary to suppress the current investment in tire investment.

"The "Policy" encourages the adjustment of the tire industry structure. According to the industrial development plan, by 2015, the domestic passenger car tire radialization rate will reach 100%, the light-duty truck tire radialization rate will reach 85%, and the radial middling rate of heavy-duty trucks will reach 90%. Encouraging automobile companies to assemble new tire products will basically realize radialization and non-tubing of the assembly tires in 2015. The radialization rate of tires means an increase in the market demand for radial tires, which is a pure radial tire production enterprise of Huanan Tire & Rubber Co., Ltd. We are ready to use this wind to further expand the market," said Zou Yongzhi.

"The introduction of "Policy" is a major event in the tire industry. The company has organized relevant personnel to discuss and formulate business development measures." Feng Feng, general manager of Fengshen Tire Co., Ltd. said: "Aeosaurus is a mainstream company in the tire industry in China. Take the lead in implementing the "policy" provisions."

It is understood that, in addition to the recent completion of Fengshen Co., Ltd.'s ongoing construction of 6 million sets of semi-steel tires, there is no plan to expand the production capacity of all steel tires. The focus is to renovate and tap existing production capacity. In addition, with regard to existing biased tires, they will not expand their scale in the near future and gradually reduce the proportion of biased tires.

Yuan Zhongxue, chairman of Shandong Software Control Co., Ltd., said: "The "Policy" not only gives the tire company a responsibility, but also gives us a good opportunity. This is to step up research and development of new technologies and new products. For example, the company established the first tire information production demonstration base integrating the new management model, new technology, new technology, new equipment, new materials, and new products in China. It has an all-steel radial tire demonstration production line and tire recycling. Projects, engineering tire demonstration production lines, etc. Taking the road of R&D and promotion of high-end products and technologies and taking the road of innovative production and management should be a wise choice for tire companies.