High Energy-Consuming Industries Development Implementation Plan

Shandong government issued the Notice on High-Quality Development of High Energy-Consuming IndustriesImplementation Plan (hereinafter referred to as the Plan). The Plan aims tohelp to replace old growth drivers with new ones, further enhance thesupply-side reform and promote the quality and efficiency reform.

Thepolicies associated with the tire industry are as follows. By 2020, the industryconcentration, proportion of radial tires, brand value and quality andefficiency levels will obviously improve. The output of bias tires willdecrease from 35million pieces to 20 million pieces. The number of enterprises whose salesrevenue exceeds 10 billion RMB will reach 4. High-end, high performance andhigh value-added tires will be the development trend. Main products will be low-profile,super low-profile and high-speed radial tires, and wide cross-section, tubeless, long-life TBR tires will become the newgrowth point.