Page 56 - RB-69-14-2

CHINA
Zhan Yao Li, Customer Manager, Shun Xin Xiamen Investment Co Ltd.
Shun Xin Exploring
Possibilities for Second
OTR Plant
On the second day of this correspondent’s visit to the Chinese city of Jinjiang, a visit to an OTR plant was planned. The port city of Xiamen is situated about 100 km away from Jinjiang on the southeast (Taiwan Strait) coast of China. It is administered as a sub- provincial city of Fujian province. It also borders Quanzhou and Zhangzhou. The city was a treaty port in the 19th century and one of the
four original Special Economic Zones opened to foreign investment and trade when China began economic reforms in the early 1980s. Truck and bus tyre (TBT) retreading in China is largely controlled by small retreaders with basic equipment as well as by fly by night operators. The industry is passing through a difficult phase with almost all the retreading plants running below half
their capacity. But OTR retreading is regarded as a safe bet away from the cut throat competition in the TBT segment. “Truck tyre retreading is highly competitive as lots of people are doing it,” said Zhan Yao Li, Customer Manager of Shun Xin Xiamen Investment Co Ltd.
The company retreads around 100 OTR tyres per month in addition to a few solid and truck tyres. “Margins and profit are better in OTR retreading,” he said. Buying around 10 tonnes rubber every month from Jianxin Rubber, the company believes that OTR has lot of potential in the region. “We are toying with the idea of one more plant in Guangdong Province, Guang Xi, Fujian etc. We are looking for a partner or some kind of cooperation with another company for the proposed plant as demand for OTR retreading has been surging for some time,” confided Zhan.
Starting in 2006 and retreading OTR by cold process, the plant has an 18 inch four tyre chamber. “We hope to source another chamber if the plan for the second OTR plant is finalised,” he stated. Xiamen City’s proximity to the port gives it a market of 2,000 OTR tyres per month.
Shun Xin also retreads solid tyres besides OTR tyres for the city’s port. OTR tyres are being used for various applications on the port, therefore, it retreads a variety of OTR and solid tyres. “Customers drop their tyres with us for retreading, we also buy
old casings and retread them,” Zhan stated.