Salem shares multi-pronged defense against Vietnam construction plant capacity to maneuver

-Our correspondent Wang Yu Dong Wenjie that the U.S. Department of Commerce may enact a "double counter" order in July 2015, in the evening of the August 13 announcement, the company intends to transfer the half steel meridian Tyre products exported to the United States to Vietnam factory production, to meet the U.S. market orders and reduce the impact of "double counter". On the other hand, due to the "double counter" implementation of the U.S. half steel meridian Tire price Increase, is expected to enhance the profitability of the Vietnamese subsidiary. Vietnam plant production capacity "maneuver" according to the stock estimates, the company in the last three years, a half steel meridian Tire sold to the United States accounted for about 10% of the total income of the company, gross margin of the total gross margin of the company's average of 13.36%, if the United States "double counter" formally adopted will have a certain impact on the sales of half steel radial tire products produced in the United States. However, the company also prepared early. The company plans to carry out domestic and foreign capacity overall deployment, will be exported to the United States half steel meridian Tire products from overseas factories production. 2012, the company invested in the establishment of Vietnam subsidiary. At present, the company has half steel radial tire capacity of 25.5 million/year, of which the Vietnamese subsidiary of the half steel production capacity of about 3.5 million/year, is expected to reach 7 million per year. The company sold in 2013 to the United States half steel radial tire for 3.414 million, 2014 the first quarter of 1.3139 million. The company's Vietnamese factories are not affected by the US "double counter" because the US "double counter" is aimed only at Chinese tyre manufacturers, the shares said. If the United States "double counter" formally adopted and implemented, the company can through the domestic and foreign half steel radial tire capacity of the overall deployment, the export to the United States market orders transferred to Vietnam Factory production. On the other hand, according to the 2009 U.S. special security case, the United States "double counter" to determine a higher tax rate, the U.S. half steel Meridian Tire Market price will be increased, is expected to improve the race (Vietnam) profitability. Multi-pronged defense against "double counter" the United States is one of the major countries and regions of China's tire export. In 2009, the United States imposed punitive tariffs on all cars and light truck tyres imported from China for a period of three years. July 15 This year, the U.S. Department of Commerce announced again, the import from China's passenger cars and light truck tires launched anti-dumping, countervailing investigation. According to the U.S. International Trade Commission website Information published and the U.S. "double counter" related procedural provisions estimates, the U.S. Department of Commerce will be announced around June 4, 2015 countervailing and anti-dumping results, the enactment of countervailing and anti-dumping orders around July 2015. Industry insiders pointed out that the "double counter" incident and the 2009 special insurance case similar, the tire products involved are basically the same. But this time, Chinese companies are clearly "ready". In order to withstand the "double counter" impact, the round shares said in recent years, the company continuously improve the production of semi-steel products outside the United States sales volume and market competitiveness, in 2014 overseas acquisition of KRT Company and Malaysia, the two companies are well-known overseas tire dealers, including KRT's sales network mainly in Europe, the National Horse Company's marketingSales network mainly for Canada, the United States, South America, Europe and other countries and regions. Domestic automobile market, passenger car matching tires by foreign brand monopoly situation will gradually be broken, the company will strengthen the future of the domestic half steel Meridian Tire Market Pioneering efforts to continuously improve the steel products in the domestic sales.