Shandong Province issued a policy to eliminate backward production capacity and speed up the clearing of the tire industry

Recently, Shandong Province issued a notice on the implementation of the "Three Resolute" Action Plans for the Province (2021-2022), which involved the exit of outdated production capacity in the tire industry
.
By 2022, all steel radial tires with an annual output of 1.

1.
The new round of capacity clearance and withdrawal exceeds expectations, and policy efforts continue to increase

According to the document, the Shandong tire industry involved a total of 18 companies in this round, including 8 all-steel tire companies with a total production capacity of 5.
56 million; 10 semi-steel tire companies with a total production capacity of 25.
61 million
.
It is understood that the country’s existing production capacity of all-steel tires is 183 million; the production capacity of semi-steel tires is 647 million

Since the Ministry of Industry and Information Technology issued the "Tire Industry Policy" in 2010, a number of policy documents have stipulated that the tire industry should adjust its industrial structure, increase industry concentration, and eliminate outdated production capacity
.
However, the policy is mainly focused on increasing the concentration of leading enterprises, etc.

2.
Disorderly competition is expected to improve, and the strong leader of the company is Hengqiang

Since 2000, with the explosive growth of China's tire production capacity, the output of China's radial tires reached 616 million in 2017
.
At the same time, the tire industry has been trapped in disorderly low-price competition for a long time, and the surge in exports has also triggered trade sanctions such as "double reverse" in European and American countries

With the elimination of backward production capacity, the year-on-year growth rate of fixed asset investment in the domestic tire industry has entered a negative growth stage
.
However, leading companies still maintain active expansion