At present, China has become the world's largest tire producer and its share of the global market has been increasing year by year. In the face of the Chinese tire market growing at a rate of more than 20% each year, multinational corporations have stepped up their staking of enclosures in China. They have invested heavily in factories, localized R&D, and expanded franchise networks, resulting in high profits. Serious waste of resources and environmental pollution.
Increased competition for multinational companies It is understood that in the tire matching and retail market, the latter accounted for two-thirds of all tire sales. The market share of enterprises in the retail tire market depends to a certain extent on their network coverage. The construction of a larger sales network has become a means for multinational tire manufacturers to compete. They all accelerate the pace of expansion.
Goodyear was the first multinational tire company to enter China. At present, the company's business strategy in China began to shift to sales channels, sales models and after-sales services. It established 300 retail franchise stores within six months, setting an average of two new stores every day. Records.
Another multinational tire company, Michelin, invested more than $400 million in China to seize more market share. Today, Michelin has factories in Shenyang and Shanghai, with more than 300 dealers, and is growing at a rate of 100 new dealers each year.
Bridgestone’s investment in China has also continued to increase. It has become the world’s largest tire company to build factories in China. It only invested RMB 5 billion in a factory in Huizhou, causing great shock in the industry. In addition, following the establishment of a number of tire factories and R&D bases in Jiangsu, the existing tire testing ground of Bridgetown with an area of ​​839,000 square meters was built in Yixing, Jiangsu.
Hankook also regards China as the world's most important tire market and has established factories in Jiaxing and Jiangsu. At present, Hankook has a leading position in the Chinese car tire market, and strives to establish 300 franchise stores in 5 years, competing with Michelin and other manufacturers for the retail tire market. In addition, Hankook Tire's production line for the entire vehicle has also been started. It is estimated that 60,000 tires will be produced each year.
Severe environmental pollution and waste of resources Multinational tire companies have seized the market in China to achieve high profits while causing serious environmental pollution and waste of resources. Some enterprises did not implement the “three simultaneous†system during the initial period of construction, they did not build sewage treatment facilities, they randomly discharged wastewater that exceeded the standard, and the unauthorized construction of pollution control facilities led to the rapid increase in environmental violations.
In January 2007, the Michelin Warriors Limited, a company invested by Michelin in China, was notified by the State Environmental Protection Agency for environmental violations. Another tire investment project of Michelin involved four problems (not completed in accordance with the requirements of environmental protection for the desulfurization and dust removal of three chain furnaces, tire factory emissions odor exceeding the standard, the implementation of boiler on-line monitoring device, serious noise), was Inclusion in the list of violations. The State Environmental Protection Administration ordered it to make corrections within a time limit. Otherwise, it will be ordered by law to stop trial production and impose a fine. Afterwards, Michelin’s actions were slow. Due to poor rectification, at the end of January 2007, Michelin was once again notified by the State Environmental Protection Administration.
According to industry sources, as tire production involves the production of many chemical intermediate products, if the control is not strict, it is extremely easy to cause serious environmental pollution. The Michelin contamination incident is related to this.
Multinational tire companies with environmental violations believe that cost pressure is the main cause of excessive environmental pollution. In recent years, tire companies have been pressured by rising raw material costs and continuous pressure from automakers to reduce their investment in environmental protection. But the real situation is that most foreign brands of tire companies have raised the price of products, such as Bridgestone, Michelin, Goodyear and other foreign brands of tires in 2007 average price increase of 3% to 5%. At present, this tide of price increase is still continuing. The price of tires sold in China has also been raised. The international tire giant's product prices are generally higher and profitable. The price increase not only offsets the impact of rising costs, but may even increase profits. It can thus be seen that the lack of attitude, lack of sense of responsibility, blind pursuit of high profits, and relaxation of self-consistent requirements are the main reasons why multinational tire companies cause environmental pollution in China.
In addition to environmental pollution, multinational tire companies continue to build franchise stores, expand factories, and add new projects in China. They are a huge drain on rubber, carbon black, land, human resources, and the environment. After years of development, the Chinese tire market has basically matured. Multinational tire companies accelerate the pace of expansion and lack rational planning.
Suppression of double standards for multinational corporations In fact, the pollution problems of multinational companies have gradually surfaced in the past two years. The number of multinational corporations that have been criticized by environmental protection agencies has increased from the initial 80 to 90 to nearly 300 at present. Most of the multinational companies that have been on the list of polluting companies have in fact had a good reputation in environmental protection. To protect the environment has even become one of the competitive advantages. The pollution situation of multinational corporations in China is on the rise. This is partly due to the fact that a considerable number of multinational corporations implement dual environmental protection standards and lack of environmental responsibility in China. These companies have followed their rules and practiced environmental protection in their own countries, and they have not dared to go one step further. In developing countries, it is another set of social responsibility standards.
Some environmental experts have suggested that since corporate moral behavior is based on the social punishment mechanism, it is imperative to curb the double environmental protection standards of multinational corporations in China. It is imperative to improve the legal system, treat all domestic and foreign-funded enterprises equally, and strengthen supervision and punishment. Shut down severely illegal foreign-funded enterprises. At the same time, we should stop some of the vertical and horizontal behaviors of local governments in attracting foreign investment for transnational corporations.
Increased competition for multinational companies It is understood that in the tire matching and retail market, the latter accounted for two-thirds of all tire sales. The market share of enterprises in the retail tire market depends to a certain extent on their network coverage. The construction of a larger sales network has become a means for multinational tire manufacturers to compete. They all accelerate the pace of expansion.
Goodyear was the first multinational tire company to enter China. At present, the company's business strategy in China began to shift to sales channels, sales models and after-sales services. It established 300 retail franchise stores within six months, setting an average of two new stores every day. Records.
Another multinational tire company, Michelin, invested more than $400 million in China to seize more market share. Today, Michelin has factories in Shenyang and Shanghai, with more than 300 dealers, and is growing at a rate of 100 new dealers each year.
Bridgestone’s investment in China has also continued to increase. It has become the world’s largest tire company to build factories in China. It only invested RMB 5 billion in a factory in Huizhou, causing great shock in the industry. In addition, following the establishment of a number of tire factories and R&D bases in Jiangsu, the existing tire testing ground of Bridgetown with an area of ​​839,000 square meters was built in Yixing, Jiangsu.
Hankook also regards China as the world's most important tire market and has established factories in Jiaxing and Jiangsu. At present, Hankook has a leading position in the Chinese car tire market, and strives to establish 300 franchise stores in 5 years, competing with Michelin and other manufacturers for the retail tire market. In addition, Hankook Tire's production line for the entire vehicle has also been started. It is estimated that 60,000 tires will be produced each year.
Severe environmental pollution and waste of resources Multinational tire companies have seized the market in China to achieve high profits while causing serious environmental pollution and waste of resources. Some enterprises did not implement the “three simultaneous†system during the initial period of construction, they did not build sewage treatment facilities, they randomly discharged wastewater that exceeded the standard, and the unauthorized construction of pollution control facilities led to the rapid increase in environmental violations.
In January 2007, the Michelin Warriors Limited, a company invested by Michelin in China, was notified by the State Environmental Protection Agency for environmental violations. Another tire investment project of Michelin involved four problems (not completed in accordance with the requirements of environmental protection for the desulfurization and dust removal of three chain furnaces, tire factory emissions odor exceeding the standard, the implementation of boiler on-line monitoring device, serious noise), was Inclusion in the list of violations. The State Environmental Protection Administration ordered it to make corrections within a time limit. Otherwise, it will be ordered by law to stop trial production and impose a fine. Afterwards, Michelin’s actions were slow. Due to poor rectification, at the end of January 2007, Michelin was once again notified by the State Environmental Protection Administration.
According to industry sources, as tire production involves the production of many chemical intermediate products, if the control is not strict, it is extremely easy to cause serious environmental pollution. The Michelin contamination incident is related to this.
Multinational tire companies with environmental violations believe that cost pressure is the main cause of excessive environmental pollution. In recent years, tire companies have been pressured by rising raw material costs and continuous pressure from automakers to reduce their investment in environmental protection. But the real situation is that most foreign brands of tire companies have raised the price of products, such as Bridgestone, Michelin, Goodyear and other foreign brands of tires in 2007 average price increase of 3% to 5%. At present, this tide of price increase is still continuing. The price of tires sold in China has also been raised. The international tire giant's product prices are generally higher and profitable. The price increase not only offsets the impact of rising costs, but may even increase profits. It can thus be seen that the lack of attitude, lack of sense of responsibility, blind pursuit of high profits, and relaxation of self-consistent requirements are the main reasons why multinational tire companies cause environmental pollution in China.
In addition to environmental pollution, multinational tire companies continue to build franchise stores, expand factories, and add new projects in China. They are a huge drain on rubber, carbon black, land, human resources, and the environment. After years of development, the Chinese tire market has basically matured. Multinational tire companies accelerate the pace of expansion and lack rational planning.
Suppression of double standards for multinational corporations In fact, the pollution problems of multinational companies have gradually surfaced in the past two years. The number of multinational corporations that have been criticized by environmental protection agencies has increased from the initial 80 to 90 to nearly 300 at present. Most of the multinational companies that have been on the list of polluting companies have in fact had a good reputation in environmental protection. To protect the environment has even become one of the competitive advantages. The pollution situation of multinational corporations in China is on the rise. This is partly due to the fact that a considerable number of multinational corporations implement dual environmental protection standards and lack of environmental responsibility in China. These companies have followed their rules and practiced environmental protection in their own countries, and they have not dared to go one step further. In developing countries, it is another set of social responsibility standards.
Some environmental experts have suggested that since corporate moral behavior is based on the social punishment mechanism, it is imperative to curb the double environmental protection standards of multinational corporations in China. It is imperative to improve the legal system, treat all domestic and foreign-funded enterprises equally, and strengthen supervision and punishment. Shut down severely illegal foreign-funded enterprises. At the same time, we should stop some of the vertical and horizontal behaviors of local governments in attracting foreign investment for transnational corporations.
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