In the just past 2019, the main economic indicators of China’s rubber machinery industry have improved compared with the previous year. Except that the realized profit was still in negative growth, other indicators have turned from negative to positive with sales revenue increasing by 6%, and export delivery value increasing by 31.2%.
The concentration of the industry was further improved, and the structural bull market became obvious. Enterprises with strong innovation capability and a large proportion of export have emerged from the downturn in the industry, and sales revenue and profits have increased significantly. Considering that the current production orders of these enterprises are full, it is expected that the structural bull market will continue in 2020.
With the U.S.A. launching trade wars against China, and the U.S.A. and Europe carrying out “anti-dumping and anti-bribery” on China’s tires, it has set off a new round of overseas plant construction boom in the tire industry. According to preliminary statistics, there are currently 14 tire enterprises in China that are planning production capacity overseas, namely Zhongce Rubber, Linglong Tire, Sailun Tire, Sentury Tire, Double Coin Group, Prinx Chengshan, GS, Triangle Tyre, Guizhou Tyre, Doublestar, Chaoyang Longmarch, Qingdao Fullrun Tyre, Zhaoqing Junhong, Shandong Jinyu, etc. Most of these projects use domestic rubber machinery products first, which has made China’s rubber machinery exports grow by a large margin. In 2020, lots of equipment will be delivered on schedule. It is expected that China’s rubber machinery export momentum will continue to improve this year, and the export rate (value) is expected to continue to increase.
<Excerpt from China Rubber Web>