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New crown epidemic poses severe challenges to Chinese tires

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New crown epidemic poses severe challenges to Chinese tires

Issue Time:2020-02-24
Around the Spring Festival this year, the tire industry's shutdown and production period far exceeded 5-10 days over the years.

The outbreak of the new crown pneumonia epidemic has brought severe challenges to China's tire industry, which is struggling to climb and upgrade.
Recently, the China Rubber Industry Association's tire branch has carried out investigations on resumption of production and production of more than 100 domestic and foreign tire companies across the country.
The results show that as of February 12, 34 companies have resumed production, with a return rate of only one third. With the exception of the three tire companies in Hubei Province, other manufacturers are expected to return to work after February 20.
Although resumption of production has been achieved, most factories have very low operating rates, only 10% -30%.

The scale effect characteristics of tire companies are very obvious, and low capacity utilization will cause very high production costs.

It is reported that the main reasons for the current extremely low operating rate of enterprises are: firstly, the number of workers who can reach the factory and on the job is seriously insufficient; secondly, the transportation and logistics are limited, and the supply of raw materials has become a bottleneck; Product shipments are subject to various restrictions.
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