QINGDAO, China (March 27, 2012)—China's rubber industry needs to restructure and consolidate tire manufacturing capacity, said the president of the China Rubber Industries Association.
Speaking at the CRIA annual meeting in Qingdao last week, Fan Rende said China will find it easier to build strong brands if has a few, larger tire manufacturers, rather than many smaller companies.
Fan listed other challenges the nation's rubber industry faces: They include: the increase in the cost of energy, materials and other inputs, which leads to a reduction in efficiency and profits; insufficient technical expertise in tire industry personnel; the need to create tires that meet the demand of new tire labeling laws; and improvement in manufacturing quality while a recall system similar to those in Western nations is implemented.
He also noted that trade friction is increasing. Fan said the U.S. presidential election is exacerbating that situation.