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More Chinese tiremakers build plants overseas

A growing number of Chinese tire enterprises are making arrangements to build plants overseas in a bid to evade the potential trade frictions.

Since 2011, some domestic tire companies have built plants in Southeast Asian countries. Sailun Co. (601058.SH) set up a wholly-owned subsidiary in Vietnam. Linglong Tire built an overseas production base inThailand.

By building plants overseas, Chinese firms can take advantage of the resources and location of host countries to evade the trade conflict risks, analysts say, pointing to the recent anti-dumping and countervailing duties investigations against Chinese firms.

In the meantime, small-and medium-sized tire enterprises will be challenged greatly compared to large firms. In order to avoid risk, some plants in east China's Shandong Province postponed the orders from other countries and spared no efforts to ship the tires to the US before the end of July and finish the customs clearance before August 27 when the investigation results will be announced.

(edited by Olivia, olivia@tireworld.com.cn, Pingchao Hu contributed to the story)

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