Entry for Tire Industry     

The Ministry of Industry and Information Technology of China recently released the "Entry Requirements for the Tire Industry (discussion edition)" toward the domestic tire industry and its related sectors to dig for information and further update it.
    The file is related to a broad range of items including overall arrangement, production scale, process and energy efficiency for the domestic tire industry.
    An insider says that the regulatory entry stipulates stringent conditions for a new tire facility. A new radial tire facility for heavy-duty truck is set to have a bottommost capacity of 1 million pcs/a, and a new radial tire facility for light-duty truck should reach 5 million pcs/a. Furthermore, according to the discussing rule any new tire plant will be not allowed to select location in the eastern China and coastal region where large scale tire giants are currently located.  
   Analyst says the limits for new tire plants reflect the government's commission to the oversupply of tire in the Chinese market. The global financial crisis has brought the sluggish demand for tire in the US and European markets and then descending tire exports for Chinese players. The tire regulatory agencies hope to expand sales in domestic market and additionally international markets like Africa, South America, the Middle East and ASEAN.