Performance of Rubber Product Sector Increases Remarkably

The output of major rubber products in China hit a new historical high in 2005 and the overall performance in the sector increased remarkably. According to statistics from the National Bureau of Statistics of China, the output of tires in China reached 318 million pieces in 2005, an increase of 28.3% over 2004. The production of radial tires that presents the tire development trend continued to maintain a rapid growth and the proportion in the total output of tires further increased. The output of radial tires in China reached 143 million pieces in 2005, an increase of 36.3% over 2004 and the proportion in the total output of tires was around 45%. The total output of rubber shoes in China was 1.236 billion pairs in 2005, an increase of 22.6% over 2004.    The rubber product sector accomplished a profit of RMB10.357 billion in 2005, an increase of 37% over the previous year. Despite the supply deficit and rapid price rise of raw materials, all rubber product segments except the tire manufacturing segment successfully shifted the cost to downstream products. The profit in the rubber product sector therefore still increased rapidly.    With the impact from the drastic price rise of natural rubber and the fierce competition in the sector, the profit growth in the tire manufacturing segment was slowed down. In terms of profit distribution, however, its profit still held the first place in the rubber product sector in 2005, accounting for around 48% of the total. The profit proportion in the rubber board, tube and belt manufacturing segment and the rubber boot and shoe manufacturing segment was around 12% each.    The profit rate in the sales revenue in the rubber parts manufacturing segment was the highest in 2005, reaching 6.57%. The rubber board, tube and belt manufacturing segment was the second and the profit rate was 5.31%. The profit rate in these two segments was higher than the average level in the sector. The profit rate in other 4 segments was lower than the average level. The profit rate in the tire manufacturing segment was 4.84% and the profit rate in the rubber boot and shoe manufacturing segment was 3.38%.

Operation of the Rubber Product Sector in China in 2005Sales revenue   Growth  Profit  Growth
  (RMB million)  (%)    (RMB million)   (%)Rubber product sector   211 338 28.56   10 357  36.97   Tire                 103 018 28.21   5 011   33.82   Rubber board, tube and belt  23 637  31.64   1 255        45.94   Rubber part          17 921  22.79   1 177   11.46   Reclaimed rubber     4 494   76.49   173     66.99   Daily-use and medical rubber product 13 025  26.95   590         73.24   Rubber boot and shoe 35 890  25.50   1 212   45.83Other                   13 353  -       939     -Soiurce: CNCIC Chemdata