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Gao Jianchang Wen believes that the current price of natural rubber has reached 40,000 yuan / ton, which has become a common problem facing the rubber industry in the world. The increase in tire prices alone can not ease the pressure of increasing costs caused by raw material price increases. Moreover, if the price of tires is increased by 10% to 13%, it will be difficult to obtain the customer's approval. Under normal circumstances, it is only possible to increase the price by 5% to 6%. Other parts can only be digested by reducing the cost and improving the production efficiency within the factory. However, if the trend of natural rubber prices rises this year, factories will face losses no matter how hard they work. He said that although Sumitomo is currently producing at full capacity, its production still has potential to be tapped. In the future, the Sumitomo Changshu plant will also build a visual factory.
At the same time, he also stated that even if the cost of the factory increases substantially, Sumitomo will also treat the problem of replacing natural rubber raw materials with care, and will not reduce the product quality, because this is the basis for Sumitomo products to gain the trust of customers.
It is understood that the Sumitomo Changshu plant was established in 2002 and began to sell tires in the Chinese market in 2004. Last year, the tire production has reached five times of 2006. Takami Kaorumi believes that Sumitomo's tire business in China has just started. They will continue to develop products suitable for the Chinese market in accordance with the actual needs of Chinese consumers, thereby ensuring Sumitomo's tire business in China continues to grow.
According to another report, Sumitomo’s second tire factory in Changsha, Hunan Province, has now entered the land leveling stage and is expected to start production in summer 2012.
On the 15th, Gao Youchangwen, the new chairman of Sumitomo Rubber (China) Co., Ltd., paid a visit to the China Rubber Industry Association and said that at present, the price of natural rubber is extremely ridiculous, and this year will be a very difficult year for rubber companies worldwide. Sumitomo will reduce production costs by increasing production efficiency. Sumitomo's Changshu plant will increase production efficiency by 10% to 15%.