On February 14, 2014, Shandong provincial government issued "on the implementation of the national development [2013] No. 41 document to resolve the excess capacity of the implementation of opinions" proposed, to 2017 tire industry capacity utilization rate reached more than 80%, tire industry layout dispersion, low concentration of the problem will be greatly improved. The radial rate of tires reaches more than 90%, the unit energy consumption of more than 75% of the main products reaches or exceeds the domestic advanced level, and the unit energy consumption of more than 55% of the main products reaches or exceeds the international advanced level.

Specific measures:

-- Promoting industrial transformation and upgrading

Encourage the tire industry to improve the level of automation and information technology in production, and promote the application of advanced technologies such as low-temperature continuous mixing and nitrogen vulcanization. Encourage the tire industry to improve the supporting capacity of medium and high-end cars in China, and actively develop the replacement tire market. We will vigorously develop special products and high-end products such as radial tires, snow tires, fuel-saving tires and low-gas preservation tires for giant projects.

-- Expanding the space for industrial development

Develop and expand Qingdao, Yantai, Weihai, Guangrao and other tire industry clusters and southwest Shandong rubber additives industry cluster. Encourage tire enterprises to actively adapt to international market access standards such as Europe and the United States, enhance the ability of international trade rights protection and brand competitiveness, and improve the international market share. We will encourage competitive enterprises in tire and other industries to "go global" in various ways, optimize the distribution of manufacturing locations, and digest excess capacity.

-- Increasing industrial concentration

Encourage Triangle, Linglong, Jinyu, Hengfeng, Xingyuan and other tire enterprises to enhance their core competitiveness and better play the leading role of the industry. Encourage leading enterprises in the tire industry to implement mergers and reorganizations of other enterprises in the province, use market-oriented means to improve industrial concentration, support the tire industry to enhance raw material support, formula, design and other capabilities, promote tire production to service, personalized, high-end and remanufacturing extension.

-- Strictly controlling the scale of production capacity

We will earnestly implement the industrial policies formulated and revised by the State for tire and other industries, resolutely prevent low-level repetitive construction, and rationally control the scale of production capacity.