There are a large number of rubber industrial enterprises in China, and the scale is generally small, and most of them cannot achieve economies of scale. There are more than 500 tire companies in China, while Europe and the United States have only a dozen of them, and Japan has only a few. The degree of industrial concentration and market competitiveness are far higher than China. From the experience of international multinational companies, mergers and acquisitions have always been an important way for companies to become bigger and stronger.
Industry concentration tide will eliminate some tire companies
Deng Yaxi, president of China Rubber Industry Association, pointed out that it actively implements mergers and reorganizations, optimizes the industrial organization structure, develops a group of independent intellectual property rights, and has a major advantage in the main industry by strengthening the main industry, resource integration, business process reengineering, and capital operation. Companies, large corporations, improving corporate competitiveness and resource allocation efficiency, and making sound brands are important choices for the Chinese rubber industry to become bigger and stronger.
She said that the establishment of Tire Group is conducive to the improvement of production efficiency, is conducive to the increase in investment in science and technology, is conducive to the construction of well-known brands, is conducive to the unified procurement of raw materials, is conducive to the unity of product sales network, the use of tire companies The implementation of the "going out" strategy. Enterprises must have a qualitative leap, and they must join forces to set up enterprise groups, which can be a combination of tire companies. They can also be based on geographical distribution, product division of labor and other mergers and acquisitions, and can also be tire companies and upstream and downstream enterprises. In short, to narrow the gap with the world's tire multinational corporations, we must first promote the development of China Tire Group.
Industry insiders generally agree with this view and believe that there are many tire companies occupying an important position in the rubber industry, and the industry concentration is far below the world average. With the current structural overcapacity of tires and increasingly stringent local policies, mergers and acquisitions are the most effective way to quickly increase the degree of concentration.
In the future, the concentration of the tire industry will further increase, and the market will gradually form a group of competitive enterprises with competitive advantages and good brand reputation. These enterprises will have a certain right to speak in the market, and the market share will also grow steadily and expand. Individual companies may face greater competitive pressure or even the fate of elimination.
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