Triangle Tires: Accelerating Transformation and Upgrading Industry in 2013
In 2013, the tyre industry quietly circulated a message: The domestic tire leader Triangular Tire Co., Ltd. has completely shut down its 34-year-old oblique light truck and heavy-duty tire production line.
Although the triangle tires have been very low-key, but the news fell as a stone into the water, swinging layers of ripples. Because in the domestic tire industry, it is the first to say goodbye to the oblique tires.
The change in the triangular tires sounded the horn of the domestic tire industry upgrade.
Finding a breakthrough
Two years ago, Ding Yuhua, chairman of triangle tires, began to think about a problem: The tire industry is exploring industrial upgrading all day long. Where should an old company start? To find a new productivity model for the tire industry, where is the breakthrough?
The Triangle Group, which was founded in 1976, is currently China's largest tire manufacturer and supplier with a total production capacity of 30 million sets. It serves consumers in more than 160 countries and regions, and more than 20 million products are sold worldwide every year.
However, like Other Chinese companies, Delta tires are also facing tremendous pressure to survive. Labor and raw material costs have increased, competition in the domestic market has intensified, and exports are facing international trade barriers.
To upgrade, we must find a breakthrough. Based on his years of rich industry experience, Ding Yuhua quickly made a keen judgment: low-cost and low-value-added products no longer have market competitiveness. If companies want to make breakthroughs, they must first realize large products and markets. Increased.
After careful consideration, Ding Yuhua made an unprecedented decision in the tire industry: to completely eliminate slack tire production lines and build new high-performance, high-tech content, high-value car-carriages radial tire project.
This is a bold decision. An old factory with a history of more than 30 years has gradually gained market recognition after hard work. Now it has to voluntarily give up a large ready-made market. For some people, this is tantamount to throwing away the “golden rice bowl†that they are holding in their hands. Some people do not understand this, but Ding Yuhua insists that if it is necessary to create a "new productivity model for the tire industry," it is necessary to abandon biased tires with a relatively backward technology.
Over the years, one of the most important things for triangular tires is to persist in adjusting market structure, stimulating product structure adjustment, actively expanding replacement markets, rationally adjusting supporting markets, and increasing investment in high-performance, high-tech and high-value-added products. And market launches, compression and elimination of backward production capacity.
Under the guidance of the “Transition and Upgrading†policy, Delta Tire first started innovations in process and equipment, adopted the company’s new rubber processing technology that obtained national invention patents, and greatly improved production efficiency; at the same time, it accelerated the development of low-carbon and green technologies and built an industry. The first solar photovoltaic power station, and achieved "zero emission" of industrial water; in the first prize of national scientific and technological progress, the level of technology and quality has been on the leading domestic basis, the company further accelerated the engineering of radial tires and giant tires Deep development of product series.
From the transformation and upgrading of the industry, the upgrading of products, to the overall adjustment of the market structure, Triangle tires marched with great strides. In 2012, they also made major adjustments to the management structure of the group companies and the joint-stock companies, which ensured the smooth progress of transformation and upgrading.
In 2011, it was the most difficult year for the development of the Chinese automobile and tire industry. Under the situation of a sluggish domestic and international economic environment, triangular tires have achieved good development: sales revenue has maintained a growth of 10%, import and export trade amounted to 1.5 billion U.S. dollars, and exports earned 7.3 billion U.S. dollars, an increase of 40% year-on-year.
At the same time, Triangle tires have made a series of breakthroughs in management innovation and technological innovation. In this year, the only national engineering laboratory in the domestic tire industry settled in the triangle, and the company was named “2011 Most Growth and Innovation Enterpriseâ€.
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Accelerate transformation and upgrade
The process of accelerating the transformation and transformation of the triangular tires has provided domestic tire companies with some useful inspirations.
The current global economy is undergoing a relatively large industrial change, showing a trend of shifting to China and other emerging markets. At the same time, energy conservation and environmental protection are becoming the driving force for companies to take the road of low carbonation. In the eyes of people of insight, industrial upgrading is an important guarantee for the healthy and rapid development of China's economy, and it is also a necessary path.
However, the upgrading of traditional industries is not an easy task. Especially in traditional industries such as tires, although there are a large number of domestic companies, there are fewer self-owned brands with heavyweights, and the technology and technology are relatively backward. As a result, most of the market is in the hands of multinational companies, and domestic companies can only take the low-end route. In order to seize the market, all enterprises have to rely heavily on product prices, resulting in increased disorderly competition and the industry entering a vicious cycle.
At the same time, in the international arena, China’s tire exports are being blocked by trade barriers in various countries, and the low-cost road has come to an end. For the tire industry, which has always been proud of "Made in China," the advantages of the world's factories have apparently disappeared.
One year ago, the occurrence of the “U.S. Special Safeguards for China’s Tire Insurance†made the previously unattractive tire industry a focus of attention for the people. An unchangeable fact is that at present, the annual production of domestic tires accounts for about one quarter of the world's total tire production. China has developed into the world's largest tire manufacturer, exporter, and consumer country.
However, over the years, the Chinese tire industry has faced the challenges of development coordination, balance and sustainability.
According to Ding Yuhua, chairman of Triangle tires, at present, the homogeneity of China's tire industry is more serious, manifesting itself simply in the pursuit of "quantity" growth and simple reproduction of production capacity, over-reliance on capital, energy input, and relying on intensive labor force. With scale expansion, the productivity model is lagging behind, the technological content and added value of products are low, and the production capacity at the low and medium ends is expanded too quickly. There is still a big gap between the industry and the international advanced level.
In order to change this “two-headed†situation, the domestic tire industry must adjust the industrial structure as soon as possible, realize technological upgrading, increase the technological content, and regard the high-end market as the goal to enter.
In order to achieve this goal, Triangle tires continued to deepen the strategic cooperation in the international market, and intensified communication with the multinational giants such as Goodyear, Caterpillar and Daewoo, established a price linkage mechanism, and achieved a win-win situation with its partners.
It is understood that in 2011, the strategic cooperation between triangular tires and multinational companies has been further strengthened and achieved a win-win situation. Due to the improvement of their international reputation, they also reached a cooperation relationship with the US container trailer and Hyundai Motor Co., Ltd., and established the first overseas technology R&D center in the domestic tire industry in Akron, USA.
For triangular tires, building the entire industry chain or controlling the high-end segment of the industry chain is the inevitable result of enhancing the company's core competitiveness in the future. Although this is destined to be a long and arduous process of exploration, it cannot be accomplished overnight, but they have taken the first step to success.
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