Abstract : China is currently in a special historical period of economic transition and social transformation, with economic restructuring and mixed-ownership reform becoming the themes of the times. After more than 20 years of rapid development, China's tire industry faces numerous bottlenecks restricting its further development, necessitating industrial restructuring and product transformation and upgrading. The rubber machinery industry urgently needs product upgrading to achieve greening, standardization, informatization, and internationalization of products and related processes to adapt to the new development requirements of the tire industry.
1. my country's tire industry must transform and upgrade.
1.1 my country's tire industry has entered a period of "slow growth".
Since the beginning of the 21st century, my country's tire industry has experienced rapid development. According to statistics from the China Rubber Industry Association, my country's tire production increased from 112.4 million units in 2000 to 529 million units in 2013, with a compound annual growth rate of 12.7%. Among them, radial tire production increased from 36.1 million units to 476 million units, with a compound annual growth rate of 21.9%. The radialization rate of tires in my country has exceeded 89%. Based on the world average radialization rate, there is little room for further improvement in my country's tire radialization rate. This indicates that the development of my country's tire industry will enter a period of synchronization with the overall development of the national economy, and it will be difficult for the tire industry to experience rapid growth again. "Slow growth" will become the trend of my country's tire industry in the coming years.
1.2 my country's tire industry needs to transform from large to strong.
Since 2006, my country has been the world's largest tire producer. In 2013, my country's tire production accounted for one-third of the world's total, but its sales revenue was less than one-quarter of the world's total. In 2014, among the world's top 75 tire manufacturers ranked by sales revenue, 34 were Chinese companies, with two in the top 10 and five in the top 20. If ranked by sales volume, at least two Chinese companies would be among the world's top 5, and more than ten would be among the top 20. However, the total sales revenue of the 34 Chinese companies currently in the top 75 is less than that of Bridgestone alone. Chinese tire products occupy the low to mid-end of the value chain, and have long relied on low prices to earn meager profits.
my country's tire brand image is generally low-end, lacking globally influential brands, with weak technological innovation, low technological content, inconsistent and uneven quality, severe product homogenization, low product prices, low brand value, and low internationalization. my country is far from being a global tire powerhouse. The tire industry must focus on becoming truly strong, transforming and upgrading its products, prioritizing the manufacture of mid-to-high-end products, building international brands, and realizing the dream of becoming a tire superpower.
1.3 Structural overcapacity in my country's tire industry
my country has faced a structural overcapacity problem in the tire industry for many years. Specifically, there is a severe oversupply of low-end, homogeneous tires, while high-end, i.e., eco-friendly tires have significant development potential. Starting in early 2013, the tire investment boom in my country expanded from Guangrao in Shandong to Linyi in Shandong, and then spread nationwide. Preliminary statistics show that more than 30 new or expanded tire projects have been built in my country since 2013, half of which are new tire projects. According to statistics from the Rubber Machinery Professional Committee of the China Chemical Equipment Association, my country added 15 million all-steel radial tires and 100 million semi-steel radial tires in production capacity in 2013. Based on current equipment procurement estimates by tire companies, an additional 15 million all-steel radial tires and over 120 million semi-steel radial tires are expected to be added in 2014. It is estimated that my country's production capacity for all-steel radial tires will reach over 180 million units in 2014, and the production capacity for semi-steel radial tires will reach over 600 million units. However, in 2013, sales of all-steel radial tires in my country were less than 110 million units, and sales of semi-steel radial tires were less than 400 million units. Tire companies are experiencing significantly low capacity utilization rates, and in the coming years, low-end tire manufacturers in my country will face pressure to reduce excess capacity.
1.4 my country's tire industry has a high degree of dependence on foreign imports.
For many years, my country has relied heavily on tire exports, especially for semi-steel radial tires, where over 60% is exported. According to statistics from the China Rubber Industry Association's Tire Branch, in the first half of 2014, my country's tire exports accounted for 43.3% of sales volume, and export delivery value accounted for 39.6% of sales revenue. Eighteen tire companies had exports exceeding 50% of their sales volume, with four of them exceeding 90%; 14 tire companies had export delivery value exceeding 50% of their sales revenue, with three of them exceeding 90%. This indicates a high degree of dependence on imports in my country's tire industry. my country is also a country that frequently faces anti-dumping, anti-subsidy, and technical and trade barriers for its tire products. Several countries, including the United States, Australia, Brazil, Peru, Egypt, Turkey, South Africa, Mexico, and India, have initiated anti-dumping investigations against Chinese tire exports. In 2009, the United States imposed a three-year safeguard measure on Chinese semi-steel radial tires. Less than two years after the safeguard measure was lifted, the United States has now initiated anti-dumping and countervailing duty investigations against Chinese semi-steel radial tires. It is highly likely that the United States will impose high tariffs on Chinese semi-steel radial tires again. More importantly, other countries are very likely to follow suit; for example, the Eurasian Economic Commission recently announced anti-dumping measures against Chinese truck tires. These events will have a significant impact on tire projects currently under construction in my country. my country's tire industry should mitigate the risks of anti-dumping and anti-subsidy measures by improving tire quality and grade, establishing new factories overseas or acquiring foreign tire companies, and vigorously expanding into emerging markets, thereby gaining a firm foothold in the international market.
1.5 my country still needs to make efforts to achieve green tire technology.
On November 1, 2012, the EU's Green Tire Labelling Act officially came into effect. This act clearly defines the main performance characteristics of tires, with A being the highest rating and G the lowest. Tires that do not meet the minimum requirements (below F grade) are prohibited from being sold within the EU. Although most Chinese tire manufacturers' products meet the requirements of Phase 1 of the EU's Green Tire Labelling Act, the majority of these products are mid-to-low-end, and a significant number fail to meet the requirements of Phase 2. On April 9, 2013, a research project on the development of the green tire industry, commissioned by the Raw Materials Industry Department of the Ministry of Industry and Information Technology and undertaken by the China Rubber Industry Association, passed its acceptance review and was completed. Based on the research findings, the China Rubber Industry Association organized the formulation of the "Green Tire Industry Self-Discipline Standard" and is currently researching and drafting the "Implementation Measures for the Voluntary Declaration System for Green Tire Enterprises" to promote a non-mandatory tire grading system within the industry. Compared with green tires abroad, the proportion of green tires in my country is still quite low; therefore, green tires represent the future development direction for my country's tire industry.
1.6 my country's tire production has great potential for energy conservation and environmental protection.
In terms of energy conservation and environmental protection, most Chinese tire companies have adopted a "first-mover advantage" development model. Some older tire companies, formerly located in suburban areas, are now situated in urban centers and face relocation and transformation. While many tire companies have passed environmental impact assessments, they still fall far short of being environmentally friendly enterprises. The Chinese tire industry has significant potential and must play a role in energy conservation and environmental protection. The promotion of one-step rubber mixing processes and nitrogen vulcanization technology, along with the recovery of vulcanization exhaust gases, and other energy-saving technologies and environmental protection measures, can create value for enterprises and contribute to improving the social environment.
2. Challenges and Opportunities in the Rubber Machinery Industry
2.1 The tire industry's "slight growth" and "capacity reduction" significantly reduced the demand for rubber machinery.
For many years, my country's rubber machinery industry has developed rapidly in tandem with the tire industry. Sales revenue of rubber machinery increased from 2.2 billion yuan in 2001 to 13 billion yuan in 2013, with a compound annual growth rate of 16.0%. Especially after the explosive expansion of the tire industry in 2013 and 2014, my country's rubber machinery production capacity increased rapidly, and the rubber machinery market entered a buyer's market. However, as my country's tire industry enters an era of "slow growth," coupled with overcapacity in the tire industry, the demand for rubber machinery will decrease significantly, overcapacity will become more pronounced, and industry competition will intensify. Taking tire vulcanizing machines as an example, based on an annual tire production growth rate of 5%, my country's annual demand for vulcanizing machines is estimated at 2,000 to 3,000 units, while the current annual production capacity of vulcanizing machines in my country has reached 4,500 units after recent expansion. The production capacity of vulcanizing machines far exceeds normal demand, and similar situations exist for other rubber machinery. In the coming years, the demand for conventional rubber machinery in my country may decrease, and the rubber machinery industry may face a period of recession for several years.
2.2 The tire industry's transformation from large to strong drives the development of rubber machinery towards high-end products.
The development focus of my country's tire industry is not on increasing output but on improving quality. Upgrading product grades and quality has become the mainstream in tire research and production. This requires corresponding improvements in equipment technology and precision, thereby promoting the upgrading of rubber machinery. For example, as tire companies upgrade their product grades, the industrialization of hydraulic vulcanizing machines has accelerated significantly: in 2011, the proportion of hydraulic vulcanizing machines in my country was less than 20%, but it has now reached 40%, and it will soon reach the world average of 60%; triangular rubber bonding machines have been upgraded from semi-automatic to automated models; and the stability of cutting machines and other essential rubber machinery has improved. This trend towards high-end rubber machinery has expanded the development space for the industry.
2.3 Green tire technology promotes green rubber machinery technology
The greening of tires (greening tire products and tire production) drives technological innovation in tire production, which in turn leads to process changes, thus powerfully promoting innovation in tire equipment. The use of rubber compounds with high silica content in the extrusion of green tire treads requires low temperature rise and static electricity conductivity in the extruder screw and die head flow channels, as well as acid corrosion resistance on the flow channel surfaces in contact with the rubber compound. The weight of semi-steel radial tires in my country is approximately 3% greater than that of similar foreign products. The requirement for lightweight tires presents new challenges to cutting and splicing equipment, while also demanding improved precision and stability in the working gap of calender rollers. To effectively reduce the production cost per tire, it is necessary to increase the production capacity of individual equipment. The benefits of adopting automated integrated systems in tire production not only reduce labor costs but, more importantly, eliminate human factors in the process, reduce the accumulation of process errors, improve tire quality, prevent and reduce process errors, and minimize the overall loss of benefits caused by process factors such as batch accidents, while simultaneously increasing production efficiency. Safety, green practices, and high efficiency are characteristics of advanced productivity in 21st-century tire manufacturing and are also the foundation for the greening of rubber machinery.
2.4 Globalization of tire manufacturing promotes the internationalization of my country's rubber machinery industry
my country's excessive reliance on imported tires will inevitably lead to anti-dumping, anti-subsidy, and technical and trade barriers from foreign countries. my country's tire industry must align with international standards, upgrade its products, and establish factories overseas to achieve globalization of tire manufacturing and sales. Recently, Hangzhou Zhongce Rubber Co., Ltd. has suspended domestic investment to focus on building a factory in Thailand; Sailun Co., Ltd. and Linglong Tire Co., Ltd. have increased their efforts in building factories in Vietnam and Thailand; Triangle Group Co., Ltd. plans to invest 250 million euros to build a new tire factory in Bashkortostan, Russia; Shandong Aogeri Tire Co., Ltd. is investing in an all-steel radial tire and semi-steel radial tire project in Indonesia; and Giti Tire announced plans to build a factory in the United States. These overseas tire projects provide a larger market for my country's rubber machinery exports.
2.5 The development of information technology in the tire industry has promoted the improvement of automation level in my country's rubber machinery.
The tire industry is a typical labor-, technology-, and capital-intensive industry. In recent years, Chinese tire companies have increased their investment in information technology, and the automation level of tire manufacturing equipment has been continuously improving. However, compared with other manufacturing enterprises, the level of informatization and automation in tire companies is still relatively low, with a large amount of work still being done manually. my country is vigorously promoting the integration of informatization and automation, and tire companies need to strengthen the application of informatization and automation technologies to change their original development model. The application of robots, unmanned vulcanizing workshops, and intelligent warehouses will promote the improvement of my country's rubber machinery control level.
3. Development Strategies of my country's Rubber Machinery Industry
3.1 Product Upgrade
The next five years will be a crucial period for the upgrading of my country's rubber products, especially tires. Tire companies will evolve from using equipment that met basic standards in the first decade of the 21st century to equipment that pursues high precision, continuous stability, reliable control, and information-based system management. my country's rubber machinery industry should focus on eliminating and ceasing the production and sale of outdated, inefficient, and energy-intensive equipment. This includes not only ceasing the production of conventional bias-ply tire equipment but also comprehensively upgrading first-generation radial tire equipment, equipping tire companies with new, fully automated equipment, especially high-end equipment. This will enable tire products and production to achieve environmental protection, energy conservation, high efficiency, and safety, promoting the upgrading of my country's tire industry and the development of green tires from imitation and the absorption and digestion of imported technologies to integrated and original innovation. Furthermore, it will shift my country's rubber machinery exports from single machines and units to complete sets of equipment, entire factories, and technology exports. Specifically, in tire production equipment, vulcanizing machines are evolving towards hydraulic vulcanizing machines; internal mixing equipment is developing towards powerful, variable-speed, functional, and intelligent one-step rubber mixing production lines; molding equipment is developing towards high efficiency, high precision, and high automation; and auxiliary equipment systems are developing towards efficient, uniform feeding, environmentally friendly, safe, expert fault diagnosis, and intelligent batching and conveying systems. In non-tire vulcanizing equipment, conveyor belt and sheet/rubber sheet vulcanizing machines are developing towards linked flat vulcanizing machines and large five-drum continuous vulcanizing machines; hose, sealing strip, and profile vulcanizing machines are developing towards continuous extrusion molding vulcanizing production lines; and compression molding vulcanizing machines are developing towards automatic injection molding vulcanizing machines (with market share increasing from the current 10% to 30%–40%). Simultaneously, emphasis is being placed on the development of highly automated, heat-conducting oil, and multi-layer flat vulcanizing machines. Developing multiple sets of mobile tire vulcanizing machines and new non-tire vulcanizing machines is a new challenge in the vulcanizing equipment field.
3.2 Greening
The rubber machinery industry has enormous potential for energy conservation. Therefore, the research and development and promotion of energy-saving and environmentally friendly rubber machinery are crucial, with a focus on promoting rubber machinery that converts electrical energy into kinetic or thermal energy. The specific development direction of my country's rubber machinery is as follows: hot-feed extrusion equipment will evolve into cold-feed extrusion equipment; steam-type tire vulcanizing machines will evolve into hot-plate tire vulcanizing machines; intermittent rubber mixing equipment will evolve into continuous rubber mixing equipment; single-operation equipment will evolve into mechanized, interconnected, and automated combined equipment; the temperature control method for rubber equipment will shift to a closed-loop temperature control method, minimizing or avoiding the use of steam as a heat source; and technologies and equipment for preventing dust pollution and reducing noise will be developed. Noise in rubber product enterprises mainly comes from the transmission system (motor, gearbox) and related components of the equipment. Improving the manufacturing precision and dynamic balance performance of the transmission system and related components of rubber machinery, while also improving the vibration damping performance of rubber machinery, is essential.
3.3 Standardization
Currently, my country has 74 standards for specialized rubber machinery, including 18 national standards and 56 industry standards. GB/T12783 is a product model classification standard. For rubber and plastic machinery products, standards for widely used products such as tire processing equipment and extruders have been completed. However, standards for many rubber product processing, refurbishment, recycling machinery, and testing machinery are still lacking. Some product standards also lack corresponding methodological standards. In the future, it is necessary to continuously improve the standard system and strengthen the coverage of product standards. The future development goals for rubber machinery standardization are "breakthrough, improvement, acceleration, and alignment." "Breakthrough" refers to achieving a breakthrough in energy-saving standards. "Improvement" means continuously improving the technical level of national and industry standards, ensuring that standard development does not lag behind technological development, and promptly revising outdated and aging rubber and plastic machinery standards, striving to keep their age within 5 years. "Acceleration" means accelerating the development of standards, especially standards for waste rubber and plastic processing equipment, accelerating the transformation of national and industry standards into energy-saving and environmentally friendly new products and technologies, and promptly developing practical technical standards. "Alignment" refers to aligning national and industry standards, especially safety standards, with advanced international standards. This involves collecting, translating, consulting on, and adapting advanced foreign standards to provide technical support for my country's export trade. The key task of standardization work in my country's rubber machinery industry is to improve the standard system, enrich basic and general standards, as well as safety, energy conservation, and environmental protection standards, and incorporate advanced technologies into the standards.
3.4 Information Technology
The application of information technology will comprehensively transform my country's traditional rubber machinery, improving its automation level, labor productivity, safety, and stability, while simultaneously advancing automated control systems towards intelligence. Advanced control technologies such as predictive control, fuzzy control, and pattern recognition will be applied to rubber mixing equipment to promote intelligent rubber mixing processes. Information network technology will be used to solve the problem of "automation silos," changing traditional automation control methods and moving towards providing comprehensive solutions for tire manufacturing equipment. Equipment control and production management will be integrated, enabling unified collection and processing of production information across the entire workshop and enterprise. Efforts will be focused on equipment automation and safety, emphasizing system safety design to minimize equipment malfunctions, personal injury, and equipment accidents, reducing manpower and labor costs, and minimizing downtime. Non-contact detection methods such as light and electricity, along with advanced technologies like video, will be widely used to record equipment status and production processes in real time, enabling real-time monitoring of harsh or hazardous environments, such as vulcanization and rubber mixing workshops. Barcodes will be used as information carriers to transform single control technologies into integrated production and management control solutions, ensuring the accuracy and timeliness of information collection and providing information support for ERP information systems. Emphasis should be placed on the linkage and continuous operation of equipment, enabling process equipment to be multi-functional and versatile. The application of robots and 3D technology in rubber machinery should be vigorously promoted, and unmanned vulcanization workshops and unmanned rubber mixing workshops should be widely adopted.
3.5 Internationalization
To achieve full integration with the world in standards, design, manufacturing, sales, and service of my country's rubber machinery industry, and to secure more business opportunities, my country aims to increase the proportion of export sales revenue from less than one-fifth to one-third of total sales revenue. In addition to expanding overseas and establishing factories to become multinational corporations, transforming from "domestic" factories to "international" enterprises, Chinese rubber machinery companies must also collaborate globally to establish a comprehensive after-sales service system for Chinese rubber machinery products. This includes cultivating several world-class large enterprises with core competitiveness, establishing international brand images for several key products, increasing the added value and international market share of Chinese rubber machinery products, and enhancing the ability to cope with global economic and financial crises, trade barriers, and trade liberalization, ultimately making Chinese rubber machinery a leading product in the market.
4 Conclusion
my country's tire industry is developing towards high-end, green manufacturing, and green products, which presents both significant challenges and opportunities for the development of rubber machinery. At the same time, after years of rapid development, my country's rubber machinery industry has encountered problems such as overcapacity, excessive reliance on foreign markets, and the need to improve environmental protection and safety. Only by adopting strategies of product upgrading and greening, standardization, informatization, and internationalization of products and processes can my country's rubber machinery industry usher in a new era of development.
