China to phase out cross-ply car tyres by 2015 - reports

ERJ staff report (DS)

Beijing -- Reports in China's State-controlled media say that the country has issued a new industrial plan for the tyre industry. The Ministry of Industry and Information Technology reportedly announced the new regulations on Monday of this week.

China Daily reports that the country will phase out manufacture of cross-ply tyres for passenger cars by 2015. Meanwhile output of cross-plies will make up only 10 percent of output in heavy commercial vehicles and 15 percent of light trucks by the same date.

China's government reportedly said it will not approve any more tyre capacity until next year. China Daily reported Chen Aihua from Guosen Securities. saying, "it will be an effective measure in curbing the unnecessary glut in the industry, and, obviously will help make China's larger producers more competitive."

China Daily said the new regulations mean it will approve plans for new tyre factories only if annual capacity is over 6 million units/year in passenger car and light vehicle plants and 1.2 million units in commercial vehicle tyre plants.

The moves are reportedly to improve the efficiency of energy consumption in the industry

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Website of China's Ministry of Industry and Information Technology

Tyre rules may boost industry

China Daily (China)

Tyre rules may boost industry

People's Daily (China)