As the market becomes larger and larger, China has become a new profit growth point and a nugget for more and more global automotive-related companies. He Demang, chairman of LANXESS Group Management Board, the upstream manufacturer of automotive tyres, pointed out in an interview with reporters that the Chinese market has played an important role in LANXESS’ successful adoption of the financial crisis. They have long been optimistic about the Chinese auto market and will increase annually in the future. Capacity in China.
Reporter: How do you view the recent major tire companies' prices in the United States and China?
He Deman: I believe this is mainly a strategic adjustment of tire companies. The direct reason is the rising price of raw materials.
Reporter: How do you see China's future auto market?
He Deman: The sustainable growth of the Chinese auto market has only just begun. It is currently the world's largest producer and seller. It is expected that by 2019, China's tire market will grow nearly 4 times.
Reporter: Energy-saving and environmentally friendly vehicles are encouraged by Chinese government policies. How do you view the development of energy-efficient products?
He Deman: We are now working closely with tire manufacturers, hoping to reduce tire rolling resistance by 50% in the next few years, creating the possibility of producing "green" tires.
Reporter: Does LANXESS plan to expand production capacity in China?
He Deman: We started the construction of a butyl rubber plant in Singapore last month; in 2012, LANXESS-Taiwan Rubber (Nantong) Chemical Industry Co., Ltd. will begin production of nitrile rubber products in China. At present, our production capacity figures cannot be announced for the time being, but overall, our goal is to increase our production capacity at a single-digit annual growth rate.
Reporter: I have noticed that companies that are working with LANXESS also produce some terminal products. Will LANXESS be involved in the terminal market in the future, for example, directly into the tire industry?
He Deman: We are constantly looking for investment options, but at present we don't have a specific investment plan for end products.
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