China's rubber machinery also maintained a double-digit growth rate in the first half of the year, and orders fell sharply in the third quarter. The fourth quarter was even more difficult. As the rubber machinery production cycle is generally 3 to 6 months, according to the order of the current rubber machine companies, China's rubber machinery industry in the first quarter of next year, the situation is difficult to change.
First, the large reduction in orders has caused a serious shortage of production tasks. Affected by the tightening monetary policy, most of the original dozens of all-steel tire projects in China have been postponed or stopped. After July, China's newly built/expanded all-steel tire projects were very few. This led to very few orders received by rubber machinery companies after July, and individual companies had zero orders. What is more deadly is that in the next two to three months, except for a few tire companies that have some fill-in and fill-in projects, there is basically no big equipment tendering plan. The unsatisfactory production tasks of rubber machinery enterprises have become common phenomenon. The vulcanizing machine has a long cycle from receipt to delivery. Some companies, such as riveting and welding, have nowhere to go. Extrusion equipment manufacturers mostly have less orders on hand, and individual companies basically stop production. In addition to the tire manufacturing equipment manufacturers In addition to contracting some orders, it is almost impossible to do so in the near-term; since rubber equipment manufacturers have undertaken some non-tire items, the situation is relatively better, but orders can only be placed in the first quarter of next year.
Second, disorderly competition caused prices to bottom. The rubber machinery industry in China has developed rapidly for more than ten years, and its production capacity has expanded rapidly. Taking a vulcanizing machine as an example, there are nearly 30 existing manufacturers, and the annual production capacity is 3,000, nearly 10 times that of 10 years ago. Many manufacturers seized limited orders, leading to fierce competition, individual companies lose money to grab a single. A company in Shandong tendering vulcanization machine, the normal price of about 1.25 million yuan in the subject, the final bid price is only 1.1 million, product gross margin is almost zero, basically spend money to buy.
Third, it is difficult for the circulation of rubber machinery companies. Tire companies are in a sluggish state, which makes it difficult for rubber machine companies to make payments back. In the past, the rubber factory paid a levy to the tire factory, and the tire factory paid more than one million yuan. Now it is OK to pay 100,000 yuan, and it may even be a penny. There were few or no orders, and there were few prepayments for the products. As a result, some rubber machine companies lacked liquidity and did not even have the money to purchase kits. Some companies managed to complete the orders, but some tire factories delayed delivery of rubber products because they had no money to pick up or the project was delayed. This has a greater impact on the operation of rubber machine companies. According to reports, the production of finished products assembled by a company in the south for five units was allegedly postponed due to the suspension of buyers' projects. The amount was nearly 100 million yuan, and the company was almost unable to move.
Fortunately, the world’s tire giant’s investment in tires is still on schedule. In the past year, the world's tire giants have announced nearly 10 billion US dollars in investment projects. At present, these projects are still in an orderly manner without being affected. Michelin, Bridgestone, Hankook Tire and Goodyear plan to invest more than US$1 billion in the next two or three years. This gives greater hope for the export of rubber machinery in China. In particular, these tire giants will invest in a considerable number of projects in China, which will not be affected by China's monetary tightening. The project will have plans to advance and bring opportunities to China's rubber machinery companies.
The winter of rubber machinery industry is coming, and the time may be relatively long. The rubber machine companies must make plans for long-term hard times. To use this period of time to reflect, adjust the product structure, develop high-end products, and upgrade products. Product marketing focuses on foreign countries, especially the world's tire giants. Taking some orders in the international market is the most effective way to ease the shortage of rubber machines in China.
First, the large reduction in orders has caused a serious shortage of production tasks. Affected by the tightening monetary policy, most of the original dozens of all-steel tire projects in China have been postponed or stopped. After July, China's newly built/expanded all-steel tire projects were very few. This led to very few orders received by rubber machinery companies after July, and individual companies had zero orders. What is more deadly is that in the next two to three months, except for a few tire companies that have some fill-in and fill-in projects, there is basically no big equipment tendering plan. The unsatisfactory production tasks of rubber machinery enterprises have become common phenomenon. The vulcanizing machine has a long cycle from receipt to delivery. Some companies, such as riveting and welding, have nowhere to go. Extrusion equipment manufacturers mostly have less orders on hand, and individual companies basically stop production. In addition to the tire manufacturing equipment manufacturers In addition to contracting some orders, it is almost impossible to do so in the near-term; since rubber equipment manufacturers have undertaken some non-tire items, the situation is relatively better, but orders can only be placed in the first quarter of next year.
Second, disorderly competition caused prices to bottom. The rubber machinery industry in China has developed rapidly for more than ten years, and its production capacity has expanded rapidly. Taking a vulcanizing machine as an example, there are nearly 30 existing manufacturers, and the annual production capacity is 3,000, nearly 10 times that of 10 years ago. Many manufacturers seized limited orders, leading to fierce competition, individual companies lose money to grab a single. A company in Shandong tendering vulcanization machine, the normal price of about 1.25 million yuan in the subject, the final bid price is only 1.1 million, product gross margin is almost zero, basically spend money to buy.
Third, it is difficult for the circulation of rubber machinery companies. Tire companies are in a sluggish state, which makes it difficult for rubber machine companies to make payments back. In the past, the rubber factory paid a levy to the tire factory, and the tire factory paid more than one million yuan. Now it is OK to pay 100,000 yuan, and it may even be a penny. There were few or no orders, and there were few prepayments for the products. As a result, some rubber machine companies lacked liquidity and did not even have the money to purchase kits. Some companies managed to complete the orders, but some tire factories delayed delivery of rubber products because they had no money to pick up or the project was delayed. This has a greater impact on the operation of rubber machine companies. According to reports, the production of finished products assembled by a company in the south for five units was allegedly postponed due to the suspension of buyers' projects. The amount was nearly 100 million yuan, and the company was almost unable to move.
Fortunately, the world’s tire giant’s investment in tires is still on schedule. In the past year, the world's tire giants have announced nearly 10 billion US dollars in investment projects. At present, these projects are still in an orderly manner without being affected. Michelin, Bridgestone, Hankook Tire and Goodyear plan to invest more than US$1 billion in the next two or three years. This gives greater hope for the export of rubber machinery in China. In particular, these tire giants will invest in a considerable number of projects in China, which will not be affected by China's monetary tightening. The project will have plans to advance and bring opportunities to China's rubber machinery companies.
The winter of rubber machinery industry is coming, and the time may be relatively long. The rubber machine companies must make plans for long-term hard times. To use this period of time to reflect, adjust the product structure, develop high-end products, and upgrade products. Product marketing focuses on foreign countries, especially the world's tire giants. Taking some orders in the international market is the most effective way to ease the shortage of rubber machines in China.
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