Looking back at 2013, the tire and rubber industries were suffering from uneven enjoyment and were on ice. The profitability of tire companies was generally good, and the profit of many companies hit a new high; while the price of natural rubber continued to fall, the rubber industry complained.

What happened to China's tire rubber industry in the past year? Which events have had a major impact on the industry? At the end of the year, Tire World Net made an inventory.

1. Tyres are included in the "Three Guarantees" range of automobiles

In January 2013, the draft for the “Scope and Types of Major Components of the Three-Packs for Household Automotive Products” was solicited for comments by the National Service Standardization Technical Committee. 16 types of easily-losing automotive parts, including tires, were included in the "Three Guarantees" range.

In addition to tires, the lossy parts also include bulbs, batteries, wiper blades, spark plugs, air filters, and more. According to the Opinions, consumers may choose to replace easily consumable parts for free during the quality assurance period.

The Opinions clearly mention that “car three packs” refers to the acts of auto manufacturers, sellers, and repairers who repair, replace, and return the autos due to quality problems during the warranty period. The quality assurance period includes the warranty period, the “three guarantees” validity period and the quality assurance period of the consumable parts.

According to the analysis, after the tyres are included in the “Three Guarantees”, they can purify the disorderly competition environment of the industry more quickly, improve the overall level of the industry, and promote the healthy development of the industry.

2. "Green tires" into industry chase hot spots

In the past two years, tire companies at home and abroad have been paying close attention to the development of “green tires.” The tendency of tire products to advocate energy saving, environmental protection, safety, and comfort is increasingly evident. “Green tires” have become the mainstream of the tire industry. In 2013, this trend was even more pronounced.

In May 2013, at the first international tire industry high-level roundtable held in Guangrao, Shandong, tire industry organizations, chambers of commerce, business executives, and experts and scholars from the United States, the United Kingdom, India, Thailand, and China, etc., jointly signed the “Guan Rao "Consensus" advocates global tire industry to strengthen exchanges and cooperation in resources, energy, technology, talents, etc., pay attention to the "green tire" research and development and application, achieve new breakthroughs in the recycling of waste tires, promote industrial development and environmental protection The continuous improvement.

"Green tires" refer to radial tires with new materials and designs. The rolling resistance of the tires is reduced, thereby reducing fuel consumption and exhaust emissions. Its promotion began in the EU. The main regulations include the REACH regulation and the tire labeling law. The core of the tire labeling system is the promotion of “green tires”, which is also the trend and direction of the development of the world tire industry.

3. The birth of tire RFID RFID

In June 2013, Kumho Tire became the first company in the world to incorporate RFID tags into tire products. With the introduction of labeling technology, Kumho expects to save 10.4 billion won (approximately 5.9 million pounds) in expenditures in the logistics, production, and quality sectors.

The RFID tag is a small, thin, patch-type tag that is glued to the rubber sealing layer in the tire shaping process. It is unique and non-replicable. After a high-temperature, high-pressure production process, it can still convey quality information. The special label is equivalent to installing an "electronic ID card" for the tire.

RFID tags can perform efficient and systematic management of all processes such as quality management, product process tracking, distribution channels, and outbound/outbound information in the tire production process, preventing the sale through the illegal distribution channels or the circulation of defective products.

It is predicted that tire RFID tags may become the tire industry's development trend in the future.

4. Natural rubber realizes spot trading

On July 8, 2013, Bohai Commodity Exchange - Rubber Valley Natural Rubber Cash Trading Center was unveiled in Qingdao, Shandong Province. On November 27 of the same year, No. 3 smoke film adhesive was also officially listed on the Minhang (Rubber Valley).

At this point, the two mainstream varieties of natural rubber all achieve spot trading, filling the industry gap.

The trading center was built by Rubber Valley and Tianjin Bohai Commodity Exchange. Through professional integration of industry resources, we provide professional third-party services. The innovative rubber industry trading and circulation model enables companies in all aspects of the rubber supply chain to dock at the trading center and provides users with platform and one-stop services for account opening, spot trading, settlement, warehousing, settlement and financing, etc., by changing the original The trading model can promote the healthy and sustainable development of the rubber industry.

5. Dongyang Tire accused Chinese companies of plagiarism

In August 2013, Toyo Tire & Rubber Co., Ltd. filed a trade complaint in the United States, accusing 20 tire companies, including Chinese companies, of copying their tread and sidewall designs.

In this complaint, Dongyang Tire claimed that tires made in China and Thailand have copied its proprietary designs for the Toyo and Nitto tire brands. Toyo Tire asked US trade agents to refuse to import products that infringe their patent rights.

22 manufacturers, importers and sellers who have been complained, including China Dongfeng Tyre Co., Ltd., Guangzhou Huanan Rubber Tire Co., Ltd., Shandong Linglong Tire Co., Shandong Yongtai Chemicals Group, South China Tire & Rubber Co., Ltd. and Weifang Shunfuchang Rubber Co., Ltd. the company.

At the beginning of September 2013, the China Rubber Industry Association, together with the Ministry of Commerce and Minmetals, called the above-mentioned Chinese companies to meet and actively responded to the development of the incident.

6. Tire industry brewing the first entry standard

In 2013, the China Rubber Industry Association organized and carried out the research and development of the “conditions for the entry of the tire industry”. After its details are finalized, it will enter the solicitation stage and the time for formal promulgation has not yet been determined.

“Tire Industry Access Requirements” will specify the specific details of the tire product quality, energy and resource consumption of tire manufacturers, as well as the emission limits for water pollution and air pollution, and regulate the overall production capacity of the tire industry.

This access condition is both a challenge and an opportunity for companies. On the one hand, it will promote the domestic tire market to a higher level; on the other hand, for small-scale tire companies, this may be a "death verdict."

As of the date of the press release, the "tire industry access conditions" has not yet been announced.

7. Tire retreading is scheduled to be approved for entry

In November 2013, Zhu Jun, president of the China Tire Renovation and Recycling Association, stated at the 2013 China Energy Conservation and Low Carbon Development Forum that the first list of approvals for the tire retreading industry had been completed and the first list had only 10 companies. The assessment direction includes technology, quality, scale, and environmental impact assessment.

According to the analysis, compared with the current tire renovation company with more than 1,000 companies, the list will have a major impact on the tire retreading industry.

The list was originally scheduled to be released at the end of 2013, but as of the date of publication, no relevant reports have been found.

8. Apollo Fails to Acquire Cooper Tire

On December 30, 2013 in the United States, Cooper Tire & Rubber Co announced the termination of its merger with Apollo Tire India. The latter's plan to purchase Cooper tires for US$2.5 billion failed.

On June 12, 2013, the two parties signed a preliminary agreement and Apollo plans to acquire the entire shareholding of Cooper Tire at a price of 145 billion Indian rupees (about US$2.5 billion). However, Cooper’s joint-venture subsidiary Cooper-Ping Chengshan was opposed to the deal and workers resisted strikes. Afterwards, the deal suffered a series of setbacks, including US union opposition, price disagreements, and Cooper's belief that Apollo was trying to obtain favorable conditions through delaying tactics to cast a shadow over the deal.

In mid-November, Cooper filed an appeal with the Supreme Court of Delaware in the United States, accusing Apollo of tire delays and the appeal was rejected on December 17. Less than two weeks later, Cooper announced the termination of the merger plan, which ended the half-yearly mishmash.

9. European Union "Labor Law" tests Chinese tires

From November 1, 2012, the EU Tyre Labeling Act was formally implemented. The EU, as an important market for Chinese tire exports, has had a serious impact on the development of the domestic tire industry since the "Labeling Law" was introduced for a year. According to statistics, the EU labeling law directly affects the number of tires exported by China.

The EU Tire Label Regulations stipulate that tyres for passenger cars, light truck tyres, truck tyres and buses sold in the European Union must be labelled to indicate the tyre's fuel efficiency, rolling noise and level of wet grip. The goal is to reduce energy consumption in Europe by 20% by 2020.

The EU "Green Tire" mandatory labeling act is divided into two phases. At present, most domestic semi-steel tires can meet the EU's first-stage standards, 30% of all steel tires can not meet, and most semi-steel tires, 70% of all steel tires can not meet the EU's second-stage standards.

The market barriers established by the European Union's tire labeling law have seriously hampered the export of domestic tire companies, but on the other hand, the EU's implementation of the tire "labelling method" will also promote the Chinese tire industry to increase its technical strength, and gradually eliminate backward production capacity and accelerate industrial restructuring. , improve product quality.

10. Raw material price cut tire manufacturers profit innovation high

In the first three quarters of 2013, both domestic and foreign tire companies benefited from the drop in raw material costs, and tire production and sales improved. The profitability of tire companies was generally good, maintaining a high level in the first half of the year, and a number of companies reported high levels of profitability.

From the perspective of domestic listed companies, the revenues of both Sai Wan and Chiaton have both experienced double-digit growth, and their net profit has increased significantly. The gross profit margin level is slightly higher than the average level of the industry; Fengshen's operating income has declined slightly, but its profit level has remained good.é»” Tire sales revenue fell steadily, and profit increased significantly year-on-year, narrowing the gap between the profit margins of Fengshen, Sai Wan and Jiatong.

In addition, Goodyear’s revenue for the first three quarters of 2013 reached US$1.2 billion, a 19% increase over the same period of the previous year, a record; Hankook’s global sales in the third quarter was 1.8 trillion won (approximately US$1.62 billion). The operating profit was 244.2 billion won (approximately 220 million U.S. dollars), an increase of 9.9% year-on-year, and the profit rate was 13.6%. Michelin's operating profit for the first half of the year was 1.153 billion euros, and the profit rate was 11.3%.

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