Dongying tire is a major cluster of China's tire industry, accounting for 1/4 of the country's tire production. During its half century of vigorous development, it has formed distinct regional characteristics.
The path to listing for Dongying tire
First of all, Dongying tire has not yet had a listed company, which is closely related to its extensive development in the early stage.
As early as the 1990s, the local government encouraged financial institutions to vigorously support private enterprises to expand investment. A large number of tire factories were released in a concentrated manner, which quickly formed scale advantages, but also brought burdens on financing and credit. Especially around 2006, the withdrawal of bank loans put many companies in financial difficulties, which not only directly crushed some star companies, but also put factories on the blacklist of dishonest companies due to mutual insurance, causing irreversible financial disadvantages. It was also a major obstacle for Dongying enterprises to go public and raise funds.
In recent years, the government has actively introduced foreign capital, integrated bankrupt enterprises, and supported enterprises in actively preparing for listing. As of now, Tercelo Rubber, as a subsidiary of the listed company Wuchan Zhongda Group, is the only listed company.
At present, Jinyu Tire, Tercelo Tire, Shenghai Rubber, Huasheng Rubber and others have been selected as potential companies for listing. At the same time, the Dongying government is also actively supporting the listing of companies such as Hengfeng Tire, Xingyuan Tire, and Yongsheng Rubber.
The path to overseas for Dongying tire
In addition to the difficulty of listing, Dongying tires also have difficulty going overseas. In recent years, the national tire industry has actively promoted the process of globalization, and the pace of overseas factory construction has significantly accelerated.
Also suffering from funding constraints, Dongying Tire's pace of going overseas is slightly behind. So far, only Jinyu Tire has successfully established a factory in Vietnam.
In 2024, Huasheng Rubber and Yongsheng Rubber revealed plans to build factories overseas. Huasheng Rubber is planning to build a new tire factory in Cambodia, Yongsheng Rubber plans to build two PCR factories in Europe and Latin America, and to build two technical laboratory centers in Asia and Europe.
As we all know, Dongying Tire mainly exports tires, so building factories overseas is particularly necessary. It can also be seen that the first few companies to go abroad are all companies without debt burdens, and their future development is also attracting much attention.
The path to excellence for Dongying tire
It is worth noting that recently, the Dongying Municipal Bureau of Industry and Information Technology and the Dongying Municipal Bureau of Commerce released the "Dongying Rubber Tire Industry Development Plan (2024-2028)," providing new policy guidance in optimizing the layout of the rubber tire industry and adjusting the industrial structure.
The plan mentions that by 2028, efforts will be concentrated on cultivating 3-5 leading enterprises, with the industry's operating income reaching over 100 billion yuan. Among them, the sales revenue of Winda Boto, Changfeng Tire, Huasheng Rubber, and Yongsheng Rubber will each reach 10 billion yuan. More than seven enterprises will enter the global top 75 tire companies.
In addition, Dongying is planning and implementing 20 high-end tire projects with a total investment of 29.748 billion yuan, which will drive the industrial cluster towards high-end manufacturing.
It is evident that Dongying's tire industry is leveraging its unique characteristics and current situation, concentrating its strengths to enhance the overall industry capability. The future of Dongying's tire industry is promising and worth anticipating!
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