Shi Guoling: Tire Enterprises Hoped to Become Transferred after “18th National Congress”

Recently, the "Asian 6th Essen Tire Exhibition" was held in Shanghai. Tireworld.com has visited a solid tire manufacturing company at the exhibition and hopes to understand the current status of the industry through the company.

“The port is an important sales direction for solid tires. Therefore, we come to this exhibition in Shanghai, hoping to find cooperation opportunities here.” Shi Guoling, chairman of Shandong Zhengwang Machinery Co., Ltd. said in an interview that commercial vehicles are an economic trend. The "barometer", but this year's economic downturn, solid tires for commercial vehicles are also implicated.

Shandong Zhengwang Machinery Co., Ltd. mainly produces all kinds of steel wheels and supporting solid tires. It is mainly applied to industrial vehicles, mines and shovel vehicles, military prepared vehicles, port and airport trailers, and other Non-standard vehicles.

It is understood that solid tires are mostly used in the high-load logistics industry, and are mostly used in the field of commercial vehicles. Industry insiders said that due to the obvious slowdown in China's economy this year, the overall market growth slowed down. The regulation of the real estate industry and the weakening of the logistics industry also slowed the demand for solid tires.

When talking about the current situation of the entire tire industry, Shi Guoling only sums up a few words: "The profits of the company are minimal."

At present, the low-end excess production capacity in domestic tires is relatively serious, and most companies rely on price competition. Therefore, corporate profits are very weak, and some even run at a loss. According to industry sources, when the operating rate of the company is lower than 70%, the company is operating at a loss. In July and August of this year, the operating rate of many domestic tire companies was below 70%.

Although the overall situation this year is not very good, Shi Guoling still has full confidence in the market outlook: “Now it is not the '18th Congress’, and it will surely be conducive to the introduction of a good policy. We intend to increase the proportion of wheel exports next year and strive to reach 60%. Domestic sales reached 40%.” He also revealed in the speech that the company intends to expand production.

Although foreigners coming from this exhibition are much less than the previous one, it is judged that the domestic economy is already approaching the “bottom height.” Shi Guoling is optimistic that after the “eighteenth”, the gradual restoration of infrastructure projects will drive the demand for tires. The late market is still more optimistic.

The editor also found that after visiting other tire companies, many companies shared the same view. Some companies also stated that they will formulate specific future development directions for enterprises based on the spirit of the “18th Congress”.

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