In the context of the intensifying friction, the increasing proportion of the foreign trade market, and the escalation of the contradiction between the competition of small profits in the market, the global layout of domestic tires going overseas is an inevitable trend.
At present, what is the status of the production capacity of Chinese tires in overseas countries? What are the development challenges ahead? Ruts do some up-to-date statistics and analysis on this.
Of the 18 factories in China, 7 new factories were added during the year
In 2023, under the background of intensified friction and growing domestic production costs, tire companies will accelerate the process of building global factories, and 7 tires will announce new overseas factory construction plans within a year, with an investment of nearly 20 billion yuan.
According to the statistics of ruts, 12 Chinese companies have been built overseas18tire factory, among them6 factories in Thailand, 3 factories in Vietnam, 3 factories in Cambodia, 1 factory in Pakistan, 1 factory in Morocco, 1 factory in Malaysia, and 1 factory in Indonesia。And there isSeven tire plants are under construction
According to the latest global strategic layout of Zhongce Rubber Group,Printed in the middle of the policyConstruction of the Denisia plant will begin in 2023, and the Mexican plant will open in 2024Work!
On the whole, the actual annual production capacity of China's tire enterprises in overseas development has been formed, according to statistics, all-steel tires and semi-steel tires are about20 million, 76.5 millionTogether with the production capacity of 14.45 million and 69.5 million all-steel tires and semi-steel tires approved for construction, China will soon reach overseasSemi-steel tires 1The production capacity is 4.6 billion pieces, and the production capacity of all-steel tires is 34.5 million pieces
Attracted by the high profitability of overseas factories, letMore companies are going abroad for the first time, actively planning overseas investment, including Haohua Tire, Vomax Tire, Xindi Tire and other private enterprises.
At the same time, while Chinese tires continue to expand production in Southeast Asia, they have turned their attention to itEurope, America, Africa and other regions。Linglong Tire's plant in Serbia has been successfully put into operation, Sen Kirin is actively planning to build factories in Spain and Morocco, and Sailun Group recently announced an investment plan in Mexico.
**Barriers are becoming increasingly severe, and there will be no increase in 2023
At the beginning, China's tires went to sea not actively, but were forced to drive by the best barriers. Especially as the global tire market cyclical fluctuations enter the downward range, Europe and the United States and other countries continue to put pressure on Chinese tires. In 2023, Chinese tires were subject to anti-dumping investigationsIncludes:
On February 1, 2023, the Eurasian Economic Commission made an anti-evasion final ruling and taxation decision on the anti-dumping case of China's truck tires;
On March 30, a final decision was made on the review of the change of the anti-dumping situation of China's truck tires.
On April 4, the European Commission made a final ruling on the re-investigation of the "double anti-dumping" tax order for truck and bus tires in China.
On October 20, the EU launched the first sunset review of anti-dumping on Chinese truck and bus tires.
On July 28, the International Management Committee (ITAC) of South Africa made a final anti-dumping ruling on China's passenger car tires and truck and bus tires.
Our country is inFaced since 2023Friction casesAlso includes:
Mexico's anti-dumping investigation on China's passenger cars and light truck tires;
The United Kingdom's review and investigation of China's truck and bus tires during the transition period of "double reversal";
The United States has an annual review of China's truck and bus tires;
The eighth administrative review of China's passenger car and light truck tires in the United States is the eighth administrative review;
Thailand's second anti-dumping sunset review of China's motorcycle inner tube;
Turkey launched anti-circumvention investigations into conveyor belt anti-dumping cases involving China, India and Vietnam, among others.
In addition to China's local areas, the first and second annual administrative reviews of the anti-dumping investigation of passenger cars and light truck tires by the U.S. Department of Commerce, and the anti-dumping investigation of truck and bus tires by the U.S. Department of Commerce on Thailand, have also had an indirect impact on China's overseas bases.
It can also be seen from the data on imported tires from the United States in recent years, since 2013,Imported tires from China**Imports of tires from Thailand and Vietnam have risen rapidly.
At present, the production of tires and rubber products has become a popular choice for Chinese investorsThailand contributes the largest amount of productionkarma,The amount of investment reached 165600 million yuan。The share of investment in the tire industry in Vietnam and Cambodia has also continued to rise.
What is the return on investment for overseas factories?
It has to be said that the return on investment of Chinese tire overseas factories is also very attractive. Due to the convenient availability of raw materials, low labor costs and various preferential policies, coupled with the reduction of maritime transportation costs, the profit margin of tire companies that build factories at sea is much higher than that of domestic factories.
It can be seen from the net profit of Linglong, Sailun and Sen Kirin tires in overseas industry and commerce in the figure below that the net profit of Sailun's Vietnam factory accounts for all the group's profitsMore than 70%., Mori Kirin reachedMore than 50%., and Linglong tires exceeded, that is, to rely on the profits of overseas factories to make up for domestic losses.
However, due to the fact that in 2021, the United States began to increase the "double anti-dumping" tax to Vietnam, Thailand and other places, which had a significant impact on factory profitsThe total net profit fell significantly。If the United States to Thailand truck and bus tires "double reverse" smoothly landed, willFurther drag on the profits of Thai tire factories
Technical barriers are surging
In fact, in addition to increasingly stringent tariff barriers, more and more technical barriers are becoming more intractable for overseas factories. At present, the world economic recovery is difficult, theseThe barrier has emerged in a new form and has become an important barrier that needs to be broken through by the tire international。Since 2023, a number of proposals, bills, and restrictions have been proposed and formed:
The European Union's Carbon Border Adjustment Mechanism (CBAM), adopted on March 15, 2023, is the world's first proposal to address climate change in the form of carbon tariffs.
On June 30, the Zero Deforestation Act (EUDR) formulated by the European Union, which is an important market for China's tire exports, came into effect.
On July 28, the "New Battery Act" promulgated by the European Union has become a barrier for new energy vehicles to be exported to the EU;
On October 1, the US state of California asked tire manufacturers to find potential alternatives to the rubber antioxidant 6ppd by the end of March 2024, otherwise they will stop selling tires containing 6ppd in California;
On December 18, the Council of the European Union and the European Parliament agreed that the "European Stage 7 Emission Standard (Euro 7)" introduced emission limits for ultrafine particulate matter produced by tire wear for the first time.
The above series of technical barriers and ** barriers are inIn 2024, it will be implemented one after another。In the future, it will affect China's overseas tire exports to a certain extent, which will be an unprecedented challenge.
In a series of tariff barriers, China's tire companies have been exercised, and the surging technical barriers areIt forces Chinese tires to improve their technological innovation capabilities
It can be said that only by virtue of the cost advantage of going abroad to build factories to passively avoid the first friction, after all, it is not a long-term solution, tire companies can only improve product performance, take the initiative to enter the high-end market, adhere to the road of branding, in order to obtain greater profits and development space in the global market competition!