CRIA forecasts slower growth for rubber industry

ERJ staff report (DS)

Nanchang, China -- From 8 November, the China Rubber Industry Association (CRIA) held its annual council meeting in Nanchang City. The conference theme was "energy saving, environmental protection, quality, management, and efficiency". General Secretary of the CRIA, Deng Yali, told delegates that increasing protectionism will make it harder for Chinese companies to export tyres to Europe and other countries.

The 300 delegates elected officers for the Association. Key presentations were by Secretary-General of the CRIA Deng Yali, who reported from the Bureau meeting held late last month in Guizhou, where the Bureau said China is entering the era of high cost production.

A Reuters report, published on the CRIA website, quoted Li Yongwu of the China Petroleum and Chemical Industry Federation saying China's rubber industry has achieved a great deal, including a high rate of radialisation, and modern products in the conveyor belt and high pressure hose segments. Despite this, he noted that there are still challenges for China.

The main one is that Chinese products -- especially tyres -- are still perceived as at the low end of the quality spectrum and no Chinese company has earned the credibility to discuss issues at a global scale. Most domestic companies are at the stage of manufacture only, with little long-term strategic vision. China will therefore create the conditinos to nurture and develop existing companies so that they can form the required management, vision and capital structures needed to become world leaders.

While the industry has seen much success in tyres, Li Yongwu suggested that non-tyre automotive markets offer major opportunities to Chinese manufacturers.

Ding Ningning of the State Council Development Research Center presented an economic picture of the world economy

Fan Rende, president of China Rubber Industry Association, said the industry should focus on the industrial development of the green tyre as part of the national strategy of low-carbon economy, and also as a precursor to the introduction of tyre labellig regulations in the EU and elsewhere.

Deng Yali said China's rubber industry will keep growing this year, but at a slower rate than in the past. She said tyre production is expected to increase by about 5 percent, and tape production increased by about 10 percent

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News report from CRIA website (Chinese language)

Above report from CRIA

auto-translated into different languages (from Chinese)

Reuters News report from CRIA website (Chinese language)

Above report from CRIA

auto-translated into different languages (from Chinese)