In China, there are 4 tire manufacturers closing to bankrupt, including one state-owned enterprise, two private enterprises and one Taiwan-based enterprise. After they closed, there will be 1.74 million units of full-steel tires and 8.57 million units of half--steel tires production cut every year.
Besides, there are 5 tire projects stopped construction because of lacking money, which will cut 8.8 million units of full-steel tires and 22 million units of half-steel tires every year.
And another 3 tire projects stopped construction due to failling to pass environmental test, which will cut 6.4 million units of full-steel tires and 24 million units of half-steel tires every year.
Because of land-use right, one tire project also stopped construction, which was planned 1.2 million units/year of full steel tire production.
Anaylsts told journalists from Tireworld that in recent years, there have been to many low performance tire projects built, which caused oversupplied of low-end capacities in China. With China's government determined to deepen indutrial reform, China have to decrease low-performance capacities and encourage indutrial emerge in the future.
