Zhongce and Linglong responded positively and were not afraid of the U.S.’s double-crossing

Recently, an investor asked on an interactive platform what the main products of Zhongce Rubber, which is indirectly controlled by Zhongce Rubber, are at its Thai factory, and how will it be affected by the U.S. tire anti-dumping investigation?

The Secretary of the Board of Directors of Zhongce Rubber responded that Zhongce Rubber’s Thailand factory includes all-steel tires and semi-steel radial tires, and some of the semi-steel products fall within the scope of this U.S. tire double-crossing investigation. Since Thailand Semi Steel accounts for a small proportion of Zhongce's overall sales, Zhongce will be less affected this time.

On May 13, 2020 local time, the U.S. International Trade Commission and the U.S. Department of Commerce received a proposal from the United Steelworkers Federation to impose restrictions on imports from four countries and regions: South Korea, Taiwan, Thailand, and Vietnam. Applications for anti-dumping investigations on passenger car and light truck tires and countervailing investigations on Vietnamese products.

In the 2020 China Rubber Industry Top 100 list announced by China Rubber Magazine, Zhongce Rubber ranked first with revenue of 25.033 billion yuan.

As an industry leader, Zhongce Rubber has actively deployed overseas factories in recent years. In May 2015, the first PCR tire of Zhongce Rubber’s Thailand factory rolled off the production line. In December 2015, the first TBR tire rolled off the production line. On September 15, 2016, the first bias tire rolled off the production line. In 2017, the first PCR tire rolled off the production line. A bias-ply industrial tire and the first motorcycle tire rolled off the production line. In 2018, the first all-steel engineering tire successfully rolled off the production line. It can be seen from the layout of Zhongce Rubber in Thailand that the company has a rich tire product line in Thailand, and the semi-steel tires that are mainly targeted by this double-reverse transaction account for a small proportion.

It is understood that, in addition to Zhongce Rubber, Linglong Tire is not afraid at all when faced with double reverses, and instead accelerates the expansion of overseas production capacity. Previously, Linglong said:

1. In the short term, Linglong Tire will actively respond and is expected to rely on Thailand’s free market status and distribution relationships in ASEAN to quickly develop the ASEAN market, avoid a sharp decline in the capacity utilization rate of Thai factories, and reduce actual losses. ;

2. In the medium to long term, this anti-dumping investigation may push the company to speed up the construction of the first and second phases of the Serbian factory and transfer the main factories exporting to the United States to Serbia. At the same time, we will speed up the factory site selection and planning process in the Americas, thereby fundamentally reducing trade risks with the United States and improving our global layout.

This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.