1. The rubber industry has achieved brilliant development in the past 70 years

2019 marks the 70th anniversary of the founding of the People's Republic of China. Over the past 70 years, China’s rubber industry has adhered to technological progress and innovative development, and has achieved earth-shaking changes. It has built a complete industrial system during the planned economy period, achieved technological progress, product updates, and extraordinary development after reform and opening up, and has grown into the world’s first rubber Industrial power. Especially since the beginning of the new century, China's rubber industry has shifted from quantitative change to qualitative change, and it is moving towards a strong country in the rubber industry. Among them, the "Tenth Five-Year Plan" to the "Eleventh Five-Year Plan" are the 10 years with the fastest growth of China's rubber industry. At the same time, the product structure is adjusted and optimized rapidly. Compared with 2005, the total output value of the rubber industry in 2010 increased by 178%, an average annual growth rate. 36%, completed the sprint to a major rubber country; during the "Twelfth Five-Year Plan" period, the development of the industry entered an important period of transition from the old model to the new model; during the "Thirteenth Five-Year Plan" period, the pursuit and promotion of high-quality development became the theme, with Intelligent manufacturing characterized by digitization, networking, and intelligence has become a new force. Advantageous companies seize the opportunity to adjust their layout and "go global" to enhance global competitiveness. Green development and environmental protection have become the consensus of the industry. The development of China's rubber industry has always been linked to the country's destiny. It has undergone hard work, unity and hard work, indomitable, and a strong and prosperous country with deep roots.

2. Achievements in scientific research, innovation and green development

Innovation and green development have received more attention from rubber companies, investment in science and technology has continued to grow, new product development and testing methods have become more complete, and scientific research and development have evolved from imitating to independent innovation. In 2019, 7 achievements completed by Qingdao University of Science and Technology, Triangle Tire, Sailun Group, China Rubber and other universities and enterprises won the National Petroleum and Chemical Technology Progress Award. Linglong Tire won the "China Industry Award"; the construction of the high-speed track at the Central Asia Tire Testing Field, the largest tire testing site in Asia, was completed. The maximum inclination of the track surface is 49°39′, which is currently the largest asphalt concrete high-speed testing site in the world. track. A total of 21 companies have passed the evaluation of the National Enterprise Technology Center, including Greatoo Intelligent Equipment, Pulin Chengshan, Linglong Tire, Jinan Shengquan, Shandong Dawn, Double Star Group, Triangle Group, Shandong Haomai, Jinneng Technology, Yantai Taihe New Materials, Soft Holding shares, Shenma Industry, Yiyang Rubber and Plastics, Anhui Jiatong, Tianjin Saixiang, Guilin Rubber Machinery, Double Coin Tire, Guizhou Tire, Fengshen Tire, Wanli Tire, Jiangsu Xingda, etc. 10 companies including Anhui Shengao, Xiamen Zhengxin Industrial, Xiamen Zhengxin Haiyan, Double Coin (Chongqing), Qingdao Senqilin, Yanggu Huatai, Shandong Daun, Cabot (Tianjin), Nanjing Lead Oriental, Hankook Tire, etc. The company was rated as the fourth batch of green factories by the Ministry of Industry and Information Technology, and 15 products/series of companies such as Sailun, Fengshen, Wanli, Double Coin, Double Star, Xiamen Zhengxin, Qingdao Senqilin and other companies became "green design products".

3. Adhere to the standard to lead the realization of transformation and upgrading

China Rubber Industry Association has always adhered to the market demand-oriented, centered on the adjustment of the industry structure and the main line of green development, and actively promoted the compilation and implementation of the association's group standards. In 2019, the "Shoemaking Industry Air Pollutant Emission Standard", "Semi-steel One-time Mechanical Building Drum", "Tire Mold Spring Air Jacket", "Pre-vulcanized Retread Tread Mold", "TBM Waveform Conveyor Belt", and "TBM Fabric Core" were released in 2019. Conveyor belt, "burn-resistant metal mesh core conveyor belt", "cooling water pipe for automobiles" and "parking wedge" and other 9 standards. The formulation of these standards has played a positive role in promoting industry structure adjustment and green transformation and upgrading. In addition, two group standards, "Wear-resistant fabric whole core flame-retardant conveyor belt" and "Green Design Product Evaluation Technical Specification for Automobile Tires", have won the Ministry of Industry and Information Technology's 2019 Hundred Group Standard Demonstration Project.

4. The situation of international trade friction is severe

In 2019, the international trade environment facing China's rubber industry is severe. The first is the ups and downs of the Sino-US trade war. In the list of US trade sanctions against China, almost all rubber products are included. Secondly, the situation of international trade friction is severe. On February 15th, the United States formally imposed a "double reverse" tax on Huaka passenger car tires, and the combined margin tax rate was 23.81% to 66.17%; in October, the third annual administrative review of China’s passenger and light truck tires "double reverse" was first Cut. In June, India imposed a five-year countervailing duty on China’s new radial tires for trucks and buses. In July, Brazil made the second anti-dumping sunset review final ruling against Chinese automobile tires, with the Mercosur tax number of the product involved in the case being 4011.10.00; in November, it imposed the final ruling on the products originating in Taiwan, South Africa, Japan, South Korea, Russia and Thailand. Passenger tires initiated the first anti-dumping sunset review case investigation, and the Mercosur tax code of the product involved was 4011.20.90; in December, the first anti-dumping sunset review affirmation was made on motorcycle tires originating in China, Thailand and Vietnam Sexual verdict. In October, Egypt decided to initiate an anti-dumping investigation against truck and bus tires originating in China, Thailand, India and Indonesia. To this end, the China Rubber Industry Association has organized enterprises to actively respond. It has completed the collection of information on the EU's final anti-dumping appeal against China's truck and bus tires, and filed a class action lawsuit with the European Court of Justice on behalf of the exporting tire company. Damage defense.

5. Rubber companies have continued to build factories overseas

Affected by foreign trade frictions and the needs of rubber companies' internationalization strategy, China's rubber companies will continue to build overseas factories in 2019. In Southeast Asia, Princip Chengshan invested 170 million yuan to build a new factory in Thailand based on the standard of a green smart tire factory; Senkirin announced plans to build another smart factory to bring the total annual production capacity of the Thai factory to 18 million; In June, Sundi Tire started construction of a 6.5 million tire factory in the Malaysia-China Kuantan Industrial Park; in September, Xingda Steel Cord (Thailand) Co., Ltd., with a total investment of 1 billion yuan, officially opened, mainly producing steel cord products for automobile tires. The designed annual production capacity is 100,000 tons; in November, the ACTR tire company, a joint venture established by Sailun Group and Cooper, opened in Tay Ninh, Vietnam; in December, the construction of the Guizhou tire Vietnam factory officially started, with a designed annual production capacity of 1.2 million high-performance tires Intelligent all-steel tires; GM's first tire rolled off the assembly line in an overseas plant in Thailand with an investment of US$300 million. In the countries along the “Belt and Road”, Longdaobot started construction on the tire project in Abu Dhabi in January; in March, Linglong Tire's Serbia plant officially started, building an annual output of 13.62 million high-performance radial tires; in November, Chaoyang Langma and Pakistan Vis Industrial Company signed a joint venture agreement to produce all-steel radial tires for trucks and buses in Pakistan; Double Star Group signed a joint venture agreement with Pakistan's MSD Tire & Rubber Company and Daewoo Pakistan Bus Service Co., Ltd. to build a 7 million radial tire factory in Pakistan.

6. Digitalization and networking enable high-quality development

With the development of information technology of "cloud big things moving intelligence" (cloud computing, big data, Internet of Things, mobile Internet, artificial intelligence), more and more rubber companies are actively "borrowing cloud to increase intelligence" and promote high-end products and industrial chain March. Zhongce Rubber uses big data, cloud computing, AI intelligent manufacturing and other Internet tools to connect data in series and implant it into the Zhongce industry ecological chain system to improve efficiency; Linglong Tire signed a tripartite strategic cooperation agreement with Tencent Cloud and Huazhi Intelligent, and passed " Smart Manufacturing + Cloud Service", ushering in a new era of Linglong tire intelligent manufacturing and smart marketing; Sailun Group and China Telecom set up the first 5G industrial Internet laboratory in the tire industry; Sailun Group "5G-based rubber tire industry industrial Internet pilot demonstration project ", Qingdao Double Star "5G-based smart tire full-process'cloud' project" was shortlisted for the Shandong Province 5G pilot demonstration list; Pulin Chengshan established a new energy vehicle collaborative research room with the direction of green, data, and intelligence, tire assembly China's first "5G+Intelligent Driving" project, and completed the world's first port area 5G intelligent operation; Wanda Baotong built a digital platform for the distribution system to enhance competitiveness; Baotong Technology initiated the establishment of the "Industrial Bulk Material Conveying Digital Industry Technology Innovation" "Alliance" to build a digital ecosystem and realize intelligent delivery full-stack turnkey services; Soft Control has launched a big data intelligent application platform for rubber equipment that integrates data analysis, modeling, mining, and prediction.

7. Acquisitions and reorganizations are surging

The most eye-catching equity transaction in 2019 was the investment of 8 companies including Yestar Technology, Hangcha Group and Tongcheng New Materials, buying shares held by shareholders of Zhongce Rubber Group, and acquiring a total of 57.11% of Zhongce Rubber. At the end of September, Hangcha Group and Yexing Technology issued an announcement at the same time to increase capital in the shareholding platform Zhongce Haichao, acquire 46.95% of the equity of Zhongce Rubber, and obtain a controlling stake in Zhongce Rubber; in October, Zhongce Rubber shareholders and senior executives Complete the change. In addition, Double Star Tire signed a framework agreement to reorganize Shandong Hengyu Technology, and invested 899 million yuan to acquire Hengyu Technology; Shandong Huasheng acquired Hengyu Technology and Guofeng Rubber and Plastics at the beginning of the year each of the debts of 40 million yuan; Shandong Huasheng’s Shandong Haibeide Rubber Co., Ltd. invested 254 million yuan to complete the acquisition of Yongtai Group; Yongsheng Rubber invested in the purchase of Hengyu Rubber's old factory; Shandong Guopeng Rubber was auctioned as a whole with a turnover of 117 million yuan. With the further acceleration of enterprise integration, enterprise resources are expected to be more rationally distributed, and the entire industry ecology will also develop towards a healthier model.

8. A batch of intelligent projects started and completed

In 2019, another batch of intelligent projects in the rubber industry started and completed. In March, Doublestar Group built the world's first "Industry 4.0" intelligent chemical plant for green ecological recycling of waste rubber. In June, the first phase of Shengao Chemical's Intelligent Production Management Execution System (MES) project was successfully completed at the Tongling factory in Anhui, and the Anhui Shengao factory realized the improvement of "production intelligence". In October, Shuangxing Dongfeng Tire’s "Industry 4.0" intelligent chemical plant started trial production, and Shuangxing’s Hubei Exta waste rubber green ecological industrialization "Industry 4.0" project started. In December, Hubei Linglong’s high-standard truck and bus tire project was put into production, which effectively promoted the transformation and upgrading of Linglong tires to intelligent production and high-end products; the first tire of GM's annual production of 1.2 million intelligent all-steel tires project successfully rolled off the line. The project aims to build an industry 4.0 model factory focused on automation, informatization and greening. Purin Chengshan builds an intelligent workshop with an annual output of 1.2 million all-steel tires in accordance with the Industry 4.0 standard. It adopts the international leading MES system and intelligent equipment, and realizes the upgrade from manual logistics operations to fully automated operations. Guizhou Tire's annual production of 26,000 all-steel small and medium-sized engineering tires and 4968 all-steel giant engineering radial tires intelligent project started in November and December respectively. In addition, two major intelligent projects in the field of engineering rubber started on October 9th: Fortress Intelligent Equipment invested 130 million yuan in a digital intelligent manufacturing workshop project, and Hengshui Railway Construction Engineering Rubber invested 300 million yuan in a smart manufacturing plant project.

9. The two-level differentiation of rubber companies has intensified

Affected by factors such as the Sino-US trade war, declining automobile production and sales, stricter national environmental protection policies, rising costs, and economic structural adjustments, the development of the rubber industry has encountered unprecedented challenges, and the phenomenon of enterprise differentiation has further intensified, and the strong will continue to be strong. According to a statistical survey by the China Rubber Industry Association, the total national tire output is expected to be 642 million in 2019, a year-on-year decrease of 0.92%. However, in the first November, overseas factory tire output increased by 14%, sales revenue increased by 53%, and the total profit realized accounted for 41% of the total profit of the statistical enterprise. The sales and profit situation of a few companies in such industries as tires, hoses, tapes, rubber products, and tire molds affect the statistics of the whole industry. This development trend will also prompt rubber companies to drive innovation, attach importance to brand cultivation, and achieve green transformation and upgrading.

10. The raw material market fluctuates greatly

In 2019, the natural rubber market has been in turbulence, with prices rising and falling several times. The highest price was 12,290 yuan/ton on December 6 and the lowest price was 10,260 yuan/ton on August 2, the largest of the year. The amplitude is 19.79%. Due to the continued downturn in rubber prices, increased market risks, and irregular trading methods, the black swan incident in September when the major rubber trader Chongqing Commercial Co. "shut down" has caused a great impact on the domestic and foreign natural rubber upstream and downstream markets. The monthly output of rubber additives fluctuates greatly, forming a V-shaped trend, and the market price fluctuates with the fluctuation of the output. According to the statistics of China Rubber Association, the average price of rubber additives in the first 10 months has fallen from 18,600 yuan/ton to 14,500 yuan/ton , The lowest in 3 years. Affected by market supply and demand and environmental protection policies, as well as product sales prices and raw oil prices, the carbon black market continued its downward trend in the fourth quarter of last year, and industry profits have shrunk sharply. According to China Rubber Association, industry profits in the first three quarters fell by 93.19% year-on-year. Revenue and profits of listed companies have fallen sharply.

Reprinted from: Rubber Technology Li Xiuquan Studio