On 11st,July of 2014, Zhang hongmin, the chairman ofthe  Shandong Tire Industry Association,said to the reporter, “The tire industry has been one of the traditional competitive industries in Shandong and plays an important role in both domestic and abroad. However, we still have so many disadvantages that limited the rapid development. Therefore, we should realize the situation and accelerate thes teps to transform to follow up advanced level of the world, which can providea guarantee for promoting the tire industry development.”

Small production scale, weak risk-resistance ability

It is known that Shandong tire industrystarted from 1990 and the production scale of each comany from its key enterprises can be pretty much the same with a world large tire company, but overall production capacity, of the biggest production company           (Linglong tire company) in Shangdong, is only20% of the Goodyear.

By the end of 2013, there were 287 tire enterprises in Shandong province. Among them, there were 59 radial tire enterprises.

 However,the enterprises that owns production capability of over1.2 million all-steel radial tires was only 28 enterprises.And the production capability of 6 million semis-steel radial tires was only 19 enterprises.We had many small enterprises that owned small production scale,low profitability and weak capability of fighting against market risk.

Zhang hongmin said, “In 2012, Shandong tire industry has a big gap from the the world advanced level.The total sales volume of the top 6 enterprises was 9.4 billion dollars, only 1/3 of each one of the sales volume of enterprises like Bridgestone and Michelin.The world large tire enterprises, like Bridgestone, Michelin and Goodyear,has over 0.2 billion production capability each year.

Thus, the key enterprises includingTriangle, Linglong, Doublestar, Sailun (Jinyu),Yuanfeng,Xingyuan, Shengtai,Hengfeng, guided by the Shandong province, set Bridgestone and Michelin astheir research object. The enterprises will be strong through technology upgrading, resource integration,strengthening cooperation and merging and combining. It is known that the upcoming The implementation scheme on Shandong Industrial Headquarter+R&D center+the development mode of  regional overall arrangement and account for60% of the production of the whole province,over 50% of the green tires. Italso requires that the production of  these  key enterprises account for more than 65%  and more than 60% of the green tires by 2020..

At present, on the basis of Guiding Ideasto Accelerate Industrial Companies’ Brand Building in China, our provinceis making The Nurturing plan of Shandong Tire Industry, which willimprove the popularity of the Shandong brands and promote the brand value ofShandong tire.