GITI Tire's board decided to close its Chongqing factory since November 21, 2015.
It is reported that there were about 1,175 staff in Chongqing factory, of which 1050 people have been fired. Relevant resettlement work is coming to the end and compensation agreements of all laid-off staff have been signed.
GITI explained the cause of layoff in the documents that due to economic circumstances changed, previous labor contracts were unable to fulfill. In that case, Chongqing GITI Tire determined to lay off labors.
However, according to an informed source telling Tireworld.com.cn, economic reason was not the main reason to halt production. Chongqing GITI factory was required by the local government to improve its environmental problems, however, the two sides did not reach an agreement, and the factory was forced to move.
GITI Tire questioned for serious pollution
Journalists from Tireworld.com.cn confirmed from GITI Tire’s headquarter. The company officials said, the problem of pollution did exist, and Chongqing government authorities have warned GITI Tire and required GITI closed and relocated.
Chongqing GITI Tire was put into production in August 2002, and mainly engaged in full-steel heavy-duty radial tire production.
Chongqing GITI Tire has been frequently complained by local residents for its pollution nuisance problems since this year.
According to a report released by Environmental Protection Bureau of Chongqing Jiulongpo District on April 28th 2015 in Environmental Protection Bureau of Jiulongpo, after spot diagnosis and monitoring analysis, Chongqing GITI Tire could not collect waste gas from rubber refining and vulcanization workshop completely, and its processing facilities were aged. Besides, according to new emission standards, non-methane hydrocarbon in waste gas emissioned from rubber refining workshop was over limited.
In that case, Chongqing bureau decided to penalize Chongqing GITI Tire and limit the factory’s production.
In addition to Chongqing factory, Hefei GITI Tire has similar problems.
In July, Hefei GITI Tire was also complained by local residents for its odor emissions.
Therefore, Hefei GITI Tire factory was forced to implement odor management project in vulcanization workshop and waste gas collection project in refining workshop.
Data shows, GITI Tire, created in Singapore, owned eight tire factories in the world, except for under constructed American factory. Seven of which are located in five cities of China: Hefei in Anhui Province, Putian in Fujian Province, Yinchuan in Ningxia Province , Mudanjiang in Heilongjiang Province and Chongqing. The other factory is located in Indonesia.
In 2015 Global Tire Top 75 tyres list, Giti Tire is standing at No.11,with $3.474 billion of annual sales.
