The US government’s ruling on the special safeguard measures taken by China’s tire products exported to the US will take effect on February 4. The order of the Guangzhou tire companies from the United States is basically exhorted. Under the severe atmosphere of this “battle under the cityâ€, Guangzhou tire industry should promote industry restructuring, form a competitive enterprise with key industrial chain links, and participate in the new round of domestic market competition in the entire industry. Huazhou (Guangzhou Huanan Rubber Tyre Co., Ltd., the largest tire-producing company in South China, Guangzhou Huanan Rubber Tyre Co., Ltd.) Guangzhou International Group disclosed that Guangzhou tire industry should promote industry restructuring, promote the professional division of labor and product structure of existing tire companies, and integrate networks and technologies. Resources, etc., promoted the formation of Guangzhou Tire, the core of China Wheel, among the top three in the domestic tire industry.
“As the result of the verdict came into effect immediately, it took us one month from the time the order was placed to the arrival of the order from the US dealer. Actually, by the end of August, the order for our Wanli brand tires has been significantly reduced.â€
In an interview with this reporter, Hualun General Manager Zou Yongzhi said that in May, June and July of this year, the export situation of domestic tire companies was excellent. One of the important reasons is that, driven by news of the special security case, U.S. dealers expect the price of tires to increase, and they begin to accumulate Chinese tires. By now, they have basically not received such orders.
The admonition of orders is a helpless one. "What product profit can be as high as 35% now? Such a high punitive tariff is to drive Chinese tires out of the US market!" Zou Yongzhi said that if Hualun insists on not letting the Wanli brand withdraw from the US market, it will take 35% of its own. Punitive tariffs, calculated in 2008 sales and profit margins, will cost the company billions of dollars each year.
The reporter learned that in order to cope with market changes, Hualun, which is mainly export-oriented, will adjust the ratio of domestic sales and foreign sales from the previous 4:6 to 5:5. Zou Yongzhi introduced this, saying that under the circumstances of being affected by the US market, it is necessary to intensify the exploration of the domestic market and focus on overseas markets outside the United States.
The new trend of Hualun is actually the development trend of the Guangzhou tire industry. According to Guangzhou International Holdings Group, a controlling shareholder of Hualun, Guangzhou Tire Industry must promote industry restructuring, form a competitive enterprise with key industrial chain links, and participate in a new round of domestic market competition in the entire industry.
The reporter learned from the authoritative sources that in a sense, the Guangzhou rubber tire segment after the merger and reorganization will be mainly concentrated in China. According to Guangzhou International Group, after integrating the existing industrial resources, the development of the Guangzhou rubber industry will also promote the listing of Hualun, and use it to provide backing for the development of the entire industry. At present, Guangzhou International Group has formed a plan for the planning of Guangzhou's “big tires†section around Hualun. It is planned that in five years, Hualun will have an annual industrial output of 30 million pieces with an output value of about 15 billion yuan. Promote Guangzhou among the top three tire industries in the country.
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