Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Research Report on China's Tire Retreading Industry, 2010-2012 - In 2009, China's tire output exceeded 650 million and the number of waste tires was 240 million. In 2009, the number of retreaded tires in China reached about 14 million, increasing by about 16.70% over 2008. However, China possessed a tire retreading market with low concentration. According to incomplete statistics, there were only less than 20 tire retreading enterprises with the annual output exceeding 100,000 in 2009, while there were thousands of tire retreading enterprises in China with the annual output of about 25 million; there were thousands of pine tar and rubber powder producing enterprises with the annual pine tar output of 3.50 million tons and annual rubber powder output of 1 million tons.

As the retain number of cars increasing annually in China, the waste tire production maintains an annual growth rate of 10%-20%, having become a major solid waste polluter. Retreading is one of the many important approaches for tire recycling. Retreaded tires keep their original shapes and physical properties, but consume little energy and labor. However, many reasons lead to the slow development of China's tire retreading industry.

First of all, as for pollution and reutilization of waste tires, there have been no relevant laws or policies in China currently. On the one hand, incineration and disposal of a large number of waste tires causes not only great pollution to the environment, but also a serious waste of resources; on the other hand, it leads to the severe deficiency of raw materials for waste tire processing enterprises in China.

Secondly, due to the misunderstandings, many drivers tend to use tires until they become scrap ones and do not recycle the tires according to wear limit marks, leading to not only unsafe driving but also the loss of tire retreading value because of overuse.

Finally, customers in China generally hold many false ideas towards the tire retreading industry: it is not safe to use retreaded tires; retreaded tires are not wearable with few tire mileages. In addition, some Chinese media continuously makes distorted reports about the tire retreading industry and adds such titles as “small workshop”, “illegal operation”, “time bomb”, “excessive profits” to the tire retreading industry, leading to customers' psychological rejection of retreaded tires.

Influenced by these integrative factors, China's tire retreading industry has always presented slow development trend in recent 10 years. In 2009, the waste tire retreading rate in China was less than 10%, far lagging behind the standards of developed countries.

With the increase of retain number of cars in China, the number of private cars increases, and cars have transferred from luxuries to commodities. For car maintenance, most Chinese car owners rapidly transfer from “new-oriented” to “practical-oriented”, which is beneficial to the development of the tire retreading industry.

With the improvement of regional road network construction in China, road transport has become the uppermost way in China's transportation industry. And with the development of China's highway transport industry, usage amount of tires increases, creating favorable conditions for the development of tire retreading industry.

In 2009-2010, in order to maintain economic growth, the Chinese government drastically increased investment in road, rail and other fixed assets. The demand and retain number of engineering machines in China was increasing. It is estimated by the China Research and Intelligence that the annual demand of off-the-road tires in China will reach 4-5 million in the next few years and the annual market scale will be over USD 1 billion. In China, the service lifetime of retreaded off-the-road tires is about 70% of the new tires, and their prices are only 40%-50% of the new ones, however. It is predicted that the annual value of off-the-road tire retreading market will exceed USD 100 million with broad prospects.

It is forecasted that Chinese and overseas investors will enter China's tire retreading industry successively in the next few years. These investors will include not only persons solely investing in the tire retreading industry, but also tire manufacturers, tire trading enterprises, etc.

From this report, readers can acquire the following and more information:
-Development of China's tire retreading industry
-Market competition of China's tire retreading industry
-Supply and Demand of China's tire retreading industry
-Key enterprises in China's tire retreading industry and their operations
-Investment opportunities of China's tire retreading industry
-Development trend of China's tire retreading industry

Following persons are suggested to buy this report:
-tire retreading enterprises
-tire manufacturers
-tire trading enterprises
-tire retreading equipment manufacturers
-investors and research institutions concerning China's tire retreading industry

To get more details, please go to