3 mountains to curb Chinese tire renovation

According to the data center, China's refurbishment market will increase by more than 10%, and in 2012 it will have a renovation capacity of 18 million tires. The volume represented by this volume exceeds 6 billion yuan (US$972 million). Most of the refurbishments were completed by small scattered workshops or factories; in the nearly 600 or so units that could become “retrofitting factories”, only 22 of them had an annual output of more than 100,000 in 2013.

Given that more than 200 million tires each year reach their first life in China - and this number will continue to rise unstoppable over the next few years, due to ample production capacity of new tires - the development of domestic renovation is very low of. The first is the consumer misunderstanding of the tire retreading industry. Many people think that retreading tires is an unsafe product for small workshops, and this view is fueled by some of China’s media, who disparaged the industry as being “illegal business operations” and “enhanced within the scope of high pollution.” This negative concern The result is that many vehicle industries will not use retreaded tires.

In addition, China lacks the necessary regulatory influence and policies to effectively dispose of scrap tires and their recycling. A large number of used tires are burned or discarded, causing environmental pollution and waste of reusable raw materials. The third reason, from Aeolus Tyre experts, was that many drivers in China have used or worn tires until they are scrapped. This practice has also greatly reduced the retire rate.

Due to the above factors, the refurbishment industry in China has developed very slowly in the past decade. In China, it is much lower than the renovation rate in mature markets.

The OTR market segment is the area of ​​growth potential of China's tire retreading industry. According to the data center's forecast that China's annual demand for construction machinery tires has exceeded 5 million sets, the market for renovation and gestation should be 600 million yuan.