Skip to main content
Sister Publication Links
  • Automotive News
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • Global Tire Report
    • ADAS
    • MID YEAR REPORT
    • TIRE MAKERS
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OPINION
    • SERVICE ZONE
    • BEST PLACES TO WORK
    • OBITUARIES
  • HUMANITARIAN
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Resources
    • ADVERTISE
    • Events
    • AWARDS
    • CLASSIFIEDS
    • DIRECTORY
    • SHOP FLOOR
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
    • Best Places to Work
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
April 12, 2016 02:00 AM

High costs impacting China overseas plants

Jane Ho, Crain News Service
  • Tweet
  • Share
  • Share
  • Email
  • More
    (Crain News Service photo)
    Shen Jinrong, chairman of Hangzhou Zhongce Rubber Co. Ltd., speaks at the recent China Rubber Industry Association annual meeting.

    QINGDAO, China (April 12, 2016) — High upstream costs are a major holdup for Chinese tire makers' overseas manufacturing projects, according to Shen Jinrong, chairman of Hangzhou Zhongce Rubber Co. Ltd.

    Many such overseas plants continue making upstream purchases — synthetic rubber, carbon black, antioxidants, steel cord and the likes — from Chinese suppliers, he said during his speech at the 2016 China Rubber Conference in Qingdao in March.

    Low export tax rebates for such products and high logistics expenses have made China suppliers' prices considerably higher than local prices — up to 100-plus-percent higher in Thailand, where Zhongce operates a 5.8 million unit/year plant.

    Six Chinese tire makers have started overseas manufacturing projects so far, three in Thailand, with more than $1.6 billion total investment.

    “Such elevated costs are causing serious problems to Chinese tire makers' competitiveness,” Mr. Shen said, while urging upstream suppliers to seek overseas expansion as well.

    China's One Belt One Road program — China President Xi Jinping's development initiative aiming to promote closer cooperation between China and surrounding regions — is providing such upstream companies with good opportunities, he added.

    “The initiative calls for collective efforts. It's not something that can be accomplished by a single company.”

    __________________________________________

    Jane Ho is a correspondent for European Rubber Journal, a United Kingdom-based sister publication of Tire Business.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Goodyear-Dunlop divestiture: dealers expect little impact
    2
    Tire Business ranks the Top 75 Tire Makers of 2023
    3
    Bridgestone to be Formula E race tire supplier
    4
    Continental forecasts ongoing growth for tire business
    5
    Davis: Tier-ful exercise at ITC hearings
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Global Tire Report
      • ADAS
      • MID YEAR REPORT
      • TIRE MAKERS
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OPINION
      • SERVICE ZONE
      • BEST PLACES TO WORK
      • OBITUARIES
    • HUMANITARIAN
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Resources
      • ADVERTISE
      • Events
        • ASK THE EXPERT
        • LIVESTREAMS
        • WEBINARS
        • SEMA LIVESTREAMS
        • RUBBER NEWS EVENTS
      • AWARDS
        • Best Places to Work
      • CLASSIFIEDS
      • DIRECTORY
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
    • DIGITAL EDITION