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Guangrao tire industry integration does not stop

Recently, Tire World Network visited the enterprises in Guangrao County, Shandong Province to investigate the development of the local tire industry.

There were 6 tire companies visited, including 3 top-ranking large enterprise groups and 3 medium-sized tire companies with slightly smaller capacity.

Industry integration is the primary issue

Visiting Guangrao in Shandong, “How to integrate the local tire industry” has become a topic that cannot be avoided.

It was during the same period that Tire World Network visited, the sale of Yongtai Group was finally finalized.

In the end, Shandong Haibide Rubber Co., Ltd. invested 254 million yuan to win the Yongtai Group.

Derubao, Yongtai Group, Hengyu Technology, Ogore Tire, Shengtai Group... In recent years, Guangrao County has entered the bankruptcy process of large tire companies, one after another.

It is understood that some of these bankrupt companies have settled, some have received, and some are recruiting investors.

A corporate CEO told Tire World Network: "In addition to the companies that entered the legal reorganization process, there are some tire manufacturers that will expose problems and make a conclusion."

It is reported that Guangrao tire enterprises are bankrupt, and most of them have a great relationship with mutual insurance and bank loans.

"Breaking the broken chain" for development

As a gathering place for China's well-known tire manufacturing enterprises, in 2018, Dongrao City's Guangrao County radial tire production capacity reached 175 million, accounting for a quarter of the country, and six companies were among the top 75 global tire industry.

According to reports, in accordance with the local government's industrial planning, in the end, there are only five large tire manufacturers in Guangrao.

Tire World Network is concerned that at present, there are still more than 30 tire companies on the scale of Guangrao. Apart from the subsidiaries of some large groups, there are at least a dozen manufacturers.

This means that there will be many tire companies in the future, facing the situation of being integrated.

The above-mentioned tire company CEO said that “breaking the chain and breaking the chain” (breaking the guarantee circle, breaking but protecting the chain) is the current top priority. To solve this problem, the government, the bank and other parties need to participate, and the problem is tricky.

He believes that which specific tire companies can win from this round of reshuffles remains to be seen.

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