Interview: China Tyre Retreading, Repairing and Recycling Association

The world still contains many markets, which offer great scope for the development of retreading. However, China is still the market, which offers the biggest potential in the short to medium term. There are now around 1,000 retreaders in China, which makes it a offers the biggest potential in the short to medium term. There are now around 1,000 retreaders in China, which makes it a significant global market. The market, however, still remains relatively underdeveloped and quality levels vary considerably. This provides a significant challenge for the China Tyre Retreading and Recycling Association, who represent the interests of the country's retreading industry. During a recent visit to Beijing, we got the opportunity to interview General Master Zhou Lin Yan, Executive Vice Chairman Wang Wenqi and Association Secretary Tina on current developments in the market.

Retreading Business

What progress is being made with regards to the development of a retreading standard in China?

CTRA

In 2007 we published amended standards for car and truck tyres. These were implemented on 1 April 2008. There is also a recommended standard for the retreading of OTR tyres, although this is not an officially ratified standard. Our quality control department has checked certain factories already. We have technical centres in Beijing and Guilin where retreaders have to send in tyres for testing. If the tyres do not pass, the retreader involved may have to stop production or pay a penalty.

Retreading Business

What are the most important trends currently affecting the retread market in China?

CTRA

There are over 1000 retreaders in China but less than 100 of these produce more than 100,000 tyres per annum. The most important trend is that the government officially encourages retreading and from this year VAT will be abolished for retreads. A major problem facing the retread market is that the industry cannot guarantee good casings as our collection system is insufficient. Our government currently bans the import of casings and we are trying to lobby the government with a view to addressing this issue. Also people don't have the knowledge to maintain tyres properly. Overall the lack of casing availability affects the retread industry's investment in equipment and technology. Other factors affecting the casing situation include the fact that many budget tyres are not retreadable and the fact that overloading is still common, although the situation is improving.

Retreading Business

What can the CTRA do to raise awareness of these issues?

CTRA

We have a new government department charged with looking at industrial information and technology. We took them to visit Duobeili, one of our leading retread technology suppliers. We promote this kind of positive information so eventually the government will be made aware of what the retreading industry can contribute. We are looking at many things to help the situation including training but the most important thing for us is gathering the relevant information from the industry.

Retreading Business

How is the current global economic situation affecting the retread industry in China?

CTRA

In general, the market has not really been affected, although export/import business has reduced by 30%, which has affected business around port areas.

Retreading Business

What is the image of retreading in China?

CTRA

Urban bus companies have a history of using retreads so they accept the retreading concept readily. Long distance bus companies generally need more persuasion as they tend to show more concern about safety. The general public don't touch retreads and there is no passenger retread market in China.

Retreading Business

What is the CTRA doing with regards to training?

CTRA

We are trying to train people according to the standard. We have a number of companies we have appointed to offer training on a regional basis including Maxlink in the south, Duobeili in the north and Yuhow in the Shanghai area. Yuhow carried out a training day at its headquarter in May.

Retreading Business

How many members does the CTRA currently have?

CTRA

At the moment we have around 200 members.

Retreading Business

Finally, what are the Association's key aims for the coming years?

CTRA

The most important aim is the implementation of the retreading standard and this will be a key activity. Another main aim is to educate the media, which does not understand the retreading concept.

Issue 2009/2