Beijing – A major Chinese tire manufacturer has updated ERJ about the impact of the Coronavirus outbreak on the company’s operations in the country.
A handful of overseas clients have already shifted their orders from tire makers in China to those based in southeast Asia and Europe, according to a senior executive at Huasheng Rubber.
Huasheng is a Chinese manufacturer of commercial and passenger car tires based in Dongying, Shandong province. It sells under bands such as Huasheng, Kapsen and Habilead.
Overseas clients have been communicating with Huasheng’s factories, on an almost daily basis during the Chinese New Year holidays, regarding the factory’s local spreading information and the scheduled time to resume production, the source told ERJ.
Tire factories in Dongying are now set to resume production on 9 Feb – 10 days later than originally scheduled.
Before the holidays, distributors and import and export trader postponed tire makers’ delivery due to rising shipping costs – this added to the cash-flow pressure, said the source.
“The impact on imports of feedstock and key components is still limited,” said the source. “Factories still have some inventory...but it’ll probably last for about a week.”
The source urged the authorities to streamline the administrative processes for export-oriented companies and provide them with preferential financing policies such as lower loan interest rates.