President’s Speech
President’s Speech
ZC Rubber for a Better Future

In 2017, Chinese tire industry suffered great pressure from the increase of raw material cost and the change of market demand. For the cost, the price of natural rubber floats constantly during early and mid of 2017 influenced by the commodity market though the market supply and demand did not change greatly. Meanwhile Chinese government environmental policy forced most suppliers to reduce the production of carbon black and other chemicals needed for the tire production bringing up the cost, especially in the 2nd half of 2017. For the demand, the adjustment of Chinese economy reduced the demand on tire used for mining and construction. The new vehicle sales records just about 3.5% increase, the lowest during the past 3 years.

ZC Rubber, facing such pressure of less demand but higher cost, still achieved a remarkable performance. Our total output of truck and bus radial tires reached over 17.26 million pcs, passenger and light truck tires 32 million pcs. The total revenue jumped more than 20%. The result relied on the support from all our customers, distributors, and partners. I hereby, on behalf of over 28,000 ZC Rubber employees, express my sincere thanks and appreciation to all of you and your contribution.

In 2017, ZC Rubber aimed for the latest technology of both raw material and tire design to keep on improving the tire safety and value. The new compounding technology helps to improve about 15% more tire mileage, but 10% less fuel consumption, especially for the high speed and high temperature application. The cooperation with Tsinghua University brings a 69dB noise level for new generation of bus tires. The revised tire casing structure of construction and mining tires reduced the unexpected tire failure and guaranteed a longer tire life. ZC Rubber will continue to meet the commitment supplying suitable products to end users.

Also, ZC Rubber launched the smart production to focus on green production and promote the production efficiency. In 2017, ZC Rubber worked together with Ali Cloud, subsidiary of Alibaba and one of the leading cloud computing service provides, to monitoring all data during the production for a critical analysis on the production process, energy consumption reduction and cost saving. Not only the production efficiency but also the production yield rate is greatly enhanced in 2017 so that ZC Rubber may remain the competitiveness while facing the great cost pressure.

Smart Tire System and Auto Space retailer program were introduced to ensure that the end users may have wonderful experience after their purchase of ZC Rubber products and service. The smart tire system helps fleet owners and tire service providers to obtain the real-time tire and truck performance data as the system supervises both the tire performance with the temperature and air pressure and the truck or bus speed and transport route. The Auto Space retailer program backs all ZC Rubber distributors and retailers to provide standard and high efficiency service to the end users. ZC Rubber expects that the value-added service will be a supplementary to the safe and valuable products and our distributors and retailers may be supported to expand more business and more market shares in 2018.

Year 2018 is the 60th anniversary of ZC Rubber, who has already been the one of the global leading tire manufacturer. The history of ZC Rubber witnessed the growth from a small workshop to one giant manufacturer supplying tens of millions of tires to global end users. We will continue our mission of safe and value, continue to promote our brands and products, introducing new technology and production facilities, and supply suitable products based on the various demands from global consumers and end users. 60th anniversary is our first milestone with the support of our customers and partners all over the world. Now we are expecting great achievements in the next decade and craft a better future together with our customers and partners together.

ZC Rubber Group Chairman & President Jinrong Shen