Chinese tire manufacturer files for government financial aid

Shandong, China - Radial tire maker Shandong Deruibo Tire, with a 33 million units/year capacity, filed for government-coordinated restructuring on 7 Feb due to "financial constraints," according to the local government.

Deruibo was set up in 2009 in Guangrao county, Dongying, Shandong province. Last year it achieved €932 million in sales and ranked No.35 on ERJ's annual ranking of the world’s top 75 tire makers in its Global Tire Report.

"The company is not bankrupt and it's only asset restructuring," Guangrao government's external communication office said to ERJ. "We've set up a special task force to handle this and everything is going orderly."

Shandong Haolong Rubber Tire, another tire arm of Deruibao's parent Shandong Haolong Group, is among the petitioners in the US anti-dumping investigation and was given a 28-percent rate in the preliminary determination.

Secretary-general of China Rubber Industry Association’s tire sub-commission Shi Yifeng told ERJ: "There are bound to be a reshuffle in the sector due to reasons such as over-expansion. It's not fair to say the US anti-dumping tariffs are the trigger."

(Image source: Deruibo)