Active investment in tire sector boosts rubber machinery sector

China’s rubber machinery sector bottomed out from the 2016 and kept growing in 2017, with the sales revenue realizing two-digit growth.

Currently, both domestic and overseas tire enterprises are investing actively and their demand for rubber machineries have increased. China’s rubber machinery sector is on the ascending track.

Surge in sales revenue

Statistics show that China’s 24 major rubber machinery producers’ sales revenue totaled 7.74 billion yuan in 2017, up 11.3% year on year.

The sector’s total sales revenue in 2017 is expected to reach 10.65 billion yuan, up 10.9%, growing for the first time since 2015.

Among the 24 enterprises, sales revenues of 15 firms have increased, those of 8 declined, and one maintained stable.

The top 10 firms in terms of sales revenue are MESNAC, Safe-Run Group, Dalian Rubber and Plastics Machinery, Doublestar Rubber & Plastics Machinery, Fujian Sanming, Tianjin Saixiang, Yiyang Rubber Machinery, Guilin Rubber Machinery, Guilin Rubber Design, and New Universal Science & Technology.

The top 10 firms’ sales revenue was 6.54 billion yuan, accounting for 61.4% of the total sales revenue, and the degree of industrial concentration edged up 0.7%.

Stronger profitability

Besides sales revenue, the profit of the sector in 2017 has also increased sharply from 2016, showing stronger profitability.

All the 24 major enterprises have all realized positive profit. Take MESNAC as an example, its profit in 2017 was nearly 93 million yuan, while it lost 770 million yuan in 2016.

The primary drivers for profit growth are increasing orders and better gross profit margin.

However, raw material price hike squeezed the margin of profit.

Higher export value

The export delivery value of the 24 rubber machinery firms in 2017 totaled 1.84 billion yuan, up 32.3% year on year.

That of China’s rubber machinery sector in 2017 is estimated to be 360 million US dollars, up 20%.

The top 10 firms in terms of export delivery value are MESNAC, Tianjin Saixiang, Guilin Rubber Machinery, Huaao Tire Equipment, Yiyang Rubber Machinery, Beijing Jingyie Mechanical Equipment, Dalian Rubber & Plastics, Guilin Rubber Design, Fujian Sanming, and Wuxi Shuangxiang.

Hauao Tire Equipment’s export delivery value stood at the sector’s 77%.

The growth has been attributed to Chinese tire producers establishing production bases in the US and ASEAN, and their demands for rubber machinery increased.

Incipient calculation shows that nearly a dozen tire projects are being planned or will be kicked off.

China’s rubber machinery export in 2018 is expected to keep the growing momentum and become more globalized.

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