Environmental pressures and overcapacity have led to the collapse of numerous tire manufacturers in Shandong!
Thread Content
Taking Shandong Province, a major tire-producing region, as an example, small tire factories with an annual production of less than 500,000 tires account for about 70% of the total number of tire manufacturers in this area. Industry insiders describe the current state of Shandong’s tire industry as \"large in quantity, small in size, and scattered in distribution.\" The industry is in a state of chaos: small and medium-sized enterprises survive by taking on debt, there is overcapacity, and products are highly homogeneous. For these small and medium-sized enterprises, they face the problem of soaring raw material costs; if they don’t raise prices, they won’t be able to survive, but if they do raise prices, their tires won’t sell, leading to financial difficulties, and as a result, many tire manufacturers collapse.
The main reason why rubber, tire, and related companies were fined in 2017 was that they started construction and put the facilities into operation without obtaining approval from environmental protection authorities. Just in the first half of 2017, many provinces and cities in Shandong were subject to penalties or forced to shut down, and Shandong is merely a microcosm of China:
The main reason why rubber, tire, and related companies were fined in 2017 was that they started construction and put the facilities into operation without obtaining approval from environmental protection authorities. We have only counted those cases in which certain provinces and cities in Shandong were subject to penalties or forced to shut down during the first half of 2017, and Shandong is merely a microcosm of China:
Companies that fail to meet environmental standards should have closed down long ago. The fact that this has persisted to this day shows the inadequacy and laxity of China’s law enforcement.
The era of rising tire prices is approaching.
·The rubber additives industry is considered a highly polluting sector. In China, the production capacity for rubber additives is concentrated in regions such as Shandong, Henan, and Hebei. Most of these areas fall within the \"2+26\" cities in the Beijing-Tianjin-Hebei region, which are under strict oversight regarding air pollution control. Under such stringent environmental regulations, many small enterprises have stopped operating, been shut down, or gone bankrupt, resulting in a reduced level of activity in this industry and thus a shortage of products available on the market.
From January to July 2017, a total of 20 tire, rubber, and related enterprises in Dongying were subject to 23 penalties. The illegal activities of these enterprises include the installation of secret pipes for illegally discharging wastewater, as well as the direct release of waste gases from workshops into the surrounding environment through exhaust fans, among others. It is understood that within just 4 months, Dongying Wanda Baotong Tire Co., Ltd. was fined by environmental protection authorities on three occasions, with the total fines amounting to 160,000 yuan. Among these, the company transferred 1.72 tons of used engine oil to Dongying Guoan Chemical Co., Ltd. without filling out the required hazardous waste transfer forms as mandated, nor obtaining any approval for such transfer. In addition to Wanda Baotong, Shandong Huasheng Rubber Co., Ltd. also received two fines issued by the Guangrao County Environmental Protection Bureau within 3 months. According to analysis, among the enterprises in Dongying City that have been subject to administrative penalties for environmental violations, the range of penalty amounts is relatively large.
Dongying Fangxing Rubber Co., Ltd. was subjected to an administrative penalty of 200,000 yuan due to various reasons, including the failure of one waste gas treatment facility in its vulcanization workshop to function properly, and the release of waste gases from the workshop into the surrounding environment through exhaust fans.
Sanmen, Zhejiang, May 6-7, 2017: 70 rubber manufacturing enterprises in Sanmen County were shut down for rectification. In accordance with the requirements of the \"Sanmen County Rubber Industry Rectification and Improvement Plan\", whenever a company that violates regulations or laws is identified, it will be shut down without any hesitation. During the shutdown period, enterprises accelerate the rectification work, and normal production can resume once the inspection is successful. It is reported that a total of 70 enterprises were shut down this time; the purpose of these closures was to urge the enterprises to address potential hazards, maintain their equipment and facilities, and complete all necessary environmental protection procedures. Once the standards are met, the lockdown can be lifted immediately, allowing the enterprise to resume production.
Weifang, Shandong: By the end of September 2017, Weifang city carried out a special environmental remediation campaign targeting sources of volatile organic compound emissions in industries such as rubber production and related products, leather processing, waterproof materials, waste plastic processing, sheet metal processing, and automobile repair. The aim was to improve the level of pollution control in these industries that emit volatile organic compounds, thereby enhancing the urban air quality. Qingdao, Shandong, September 2017: The Environmental Protection Bureau of Huangdao District in Qingdao carried out a comprehensive campaign to rectify all illegal and non-compliant tire and rubber manufacturing enterprises in the district. To date, 145 companies have been subject to legal action, and 53 of them have been fined heavily, with the highest fine amount exceeding 150,000 yuan.
By the end of December 2017, heavily polluting enterprises in the main urban area of Hengshui, Hebei were to be relocated: the relocation of four such enterprises, namely Hengshui Dongxing Rubber and Plastics Co., Ltd. and Hengshui Baoli Engineering Rubber Co., Ltd., was completed. Tianjin: Jinan District in Tianjin has stepped up inspections to ensure that enterprises classified as \"disordered, polluted, and unregulated\" are shut down. The Ronghao Rubber Products Factory and the Fuchangyuan Rubber Products Factory have had their power cut off and were sealed up, with no signs of unauthorized resumption of operations detected.