Tyre mergers and acquisitions "just in time"

Cao Kechang, Cooper Tire's global vice president and general manager of the Asia-Pacific region, has predicted that in the next 10 years, Chinese tire companies will integrate through mergers and acquisitions and other means to 10 or less. A few days ago, Tire World Net conducted a questionnaire survey on the relevant issues and conducted statistics on the survey results as of December 23.

The survey results show that most people recognize the prediction made by Cao Kechang and believe that the merger and reorganization of the tire industry is the general trend.

“Building channels is expensive. There are not many families that can do it separately. It is different when they are united.” Cao Kechang gave a reasonable explanation of his predictions.

An industry expert told the Tire World Network editor that there are about 300 tire companies registered in China, and there are about 80 companies with a certain operating scale, and about 30 of them are truly “on the bench”. "The United States tire market is only Goodyear and Cooper two companies, the EU's 25 member countries but also only 6,7. Chinese tire companies should not be more, but to be fine." The expert said so.

According to Song Libo, professor-level senior engineer of China United Rubber Co., Ltd., an industry that wants to develop must move ahead and mergers are inevitable. Small tire factory is difficult to survive, technical requirements can not be reached, not only supporting difficult, retail is also very difficult to stand.

Another 39% of the voters believe that Cao Kechang’s forecast is unlikely to happen because the situation in the Chinese tire industry is more complicated and cannot simply replicate the model of the United States, the European Union and other countries and regions.

In recent years, domestic cases of mergers and reorganizations have mostly occurred among foreign-funded enterprises, while there have been few cases among domestic enterprises. In response to this phenomenon, more than half of the voters believe that this is mainly due to the complementary advantages of Chinese-foreign mergers and reorganizations; 26% of the voters believe that because domestic companies have similar strengths, it is not easy to merge groups; 22% of voters believe that The main reason is that local governments do not support mergers and reorganizations.

According to sources, the acquisition of the shares of Shenyang Peace Tire and Jinyu in the previous round of the Race Wheels share may also include the Shandong Hengyu Group, with the aim of building China's largest tire group. This will probably open up the integration and reorganization of the Chinese tire industry.

How can domestic tire companies do mergers and reorganizations and promote industry consolidation? Fifty-seven percent of voters believe that improving their capabilities is the key.

"Not just being merged, many bad companies will be eliminated, valuable talents will 'come in,' and there will be no chance of doing a bad job of 'merging'." An insider expressed this view .

According to 17% of voters, they should open their minds and say, "When it's time to get it, it's time to get it." According to a commentator, the tire market is currently sluggish, and the acquisition cost of the company is low. At this time, the acquisition can be described as “just in time”.

Another 17% of voters believe that mergers and acquisitions need national policy promotion; 9% of voters think that mergers and reorganizations need local government support.

Cao Kechang, Cooper Tire's global vice president and general manager of the Asia-Pacific region, has predicted that in the next 10 years, Chinese tire companies will integrate through mergers and acquisitions and other means to 10 or less. A few days ago, Tire World Net conducted a questionnaire survey on the relevant issues and conducted statistics on the survey results as of December 23.

The survey results show that most people recognize the prediction made by Cao Kechang and believe that the merger and reorganization of the tire industry is the general trend.

“Building channels is expensive. There are not many families that can do it separately. It is different when they are united.” Cao Kechang gave a reasonable explanation of his predictions.

An industry expert told the Tire World Network editor that there are about 300 tire companies registered in China, and there are about 80 companies with a certain operating scale, and about 30 of them are truly “on the bench”. "The United States tire market is only Goodyear and Cooper two companies, the EU's 25 member countries but also only 6,7. Chinese tire companies should not be more, but to be fine." The expert said so.

According to Song Libo, professor-level senior engineer of China United Rubber Co., Ltd., an industry that wants to develop must move ahead and mergers are inevitable. Small tire factory is difficult to survive, technical requirements can not be reached, not only supporting difficult, retail is also very difficult to stand.

Another 39% of the voters believe that Cao Kechang’s forecast is unlikely to happen because the situation in the Chinese tire industry is more complicated and cannot simply replicate the model of the United States, the European Union and other countries and regions.

In recent years, domestic cases of mergers and reorganizations have mostly occurred among foreign-funded enterprises, while there have been few cases among domestic enterprises. In response to this phenomenon, more than half of the voters believe that this is mainly due to the complementary advantages of Chinese-foreign mergers and reorganizations; 26% of the voters believe that because domestic companies have similar strengths, it is not easy to merge groups; 22% of voters believe that The main reason is that local governments do not support mergers and reorganizations.

According to sources, the acquisition of the shares of Shenyang Peace Tire and Jinyu in the previous round of the Race Wheels share may also include the Shandong Hengyu Group, with the aim of building China's largest tire group. This will probably open up the integration and reorganization of the Chinese tire industry.

How can domestic tire companies do mergers and reorganizations and promote industry consolidation? Fifty-seven percent of voters believe that improving their capabilities is the key.

"Not just being merged, many bad companies will be eliminated, valuable talents will 'come in,' and there will be no chance of doing a bad job of 'merging'." An insider expressed this view .

According to 17% of voters, they should open their minds and say, "When it's time to get it, it's time to get it." According to a commentator, the tire market is currently sluggish, and the acquisition cost of the company is low. At this time, the acquisition can be described as “just in time”.

Another 17% of voters believe that mergers and acquisitions need national policy promotion; 9% of voters think that mergers and reorganizations need local government support.

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