Double Happiness Tire Cope with Financial Crisis

At present, the financial crisis has not yet bottomed out. In the list of more than 90 industrial enterprises monitored by the Municipal Economic Commission, the data submitted by the Shuangxi Tire Company attracted the attention of the staff of the Economic Commission, compared with the decline in output and efficiency of other enterprises. From January to April this year, Double Happiness completed a sales income of 267 million yuan, an increase of 23% over the same period of last year, and tire production was 356,000, an increase of 28% year-on-year. From January to April, the export volume reached 103,000, and the export volume increased by 24.87% over the same period of last year.

With a curiosity about how Happiness is going against the market, the reporter recently entered Double Happiness. Hard work, pragmatic and innovative, human-based, and cost-based - the language of the factory site seems to tell us that the old state-owned enterprises after the difficult transition after a long period of slow forward, finally ushered in a good opportunity for enterprise development. Of course, this is not groundless.

In 2009, the global financial crisis continues. The tire industry is also not optimistic. At the beginning of the year, due to the lack of operating rate in the supporting market, the demand was bleak. The sales of domestic tire companies were unprecedented. In addition, internationally renowned brands such as Bridgestone and Michelin also sold for profit, and the competition was fierce. Due to the economic contraction in major countries such as Europe and the United States, the export market also has a large downside. In the face of difficulties, Double Happiness quickly made a choice: Seize the market and seize the source of corporate capital flow, and seize the market to stabilize the foundation of corporate operations. In fact, starting from June 2008, the Double Happiness company's leadership team did the opposite, after careful decision-making, reasonable arrangements for raw material reserves and finished product inventory, priority in the resources to ensure the needs of key customers, and ensure the company's production continues to operate effectively . At the same time, raw material reserves and finished product inventory were pushed to historical lows.

In the first quarter of this year, Shuangxi firmly grasped the existing customer resources and stabilized the customer team by taking the lead in visiting the market and inviting customers to visit the production line. After visiting major domestic manufacturers of commercial vehicles such as FAW, Dongfeng, SAIC Iveco Hongyan, etc., the company formulated a marketing strategy of “preserving lines, seizing market share, and promoting payment collection”. From January to April, Double Happiness Tire made great progress in the supporting market. . Sales volume reached 209,600 units, an increase of 39% over the same period of last year. Recently, with the support of multiple policies for the automobile to the countryside and the state, the supporting market has been fully warmed up, and the company has turned its attention to the series of engineering tires to fill the gap in the supporting market for construction machinery. On the export side, they avoided European and American countries, opened up countries and regions in Africa, the Middle East, and Central and South America affected by the crisis, and cultivated a number of new target markets. At present, its products are exported to 34 countries, and in the case of a sharp drop in the European and American markets, it effectively supplemented sales and boosted production capacity.

In order to effectively cope with the crisis, "the cost of radial tires and the survival of biased tires" has become the main theme of Shuangxi's operation in the past year. The cadres and workers have given up on the Saturday off day to form a once-a-week special regular meeting system covering quality, technology, and finance. The entire process of procurement, domestic and foreign sales, warehousing and production has been held 40 times so far. In addition, companies also focus on new product development. Since 2008, a total of 17 new varieties have been developed. The number of all-steel radial tires produced has increased from 15 to 25, and the number of varieties has reached more than 170. In response to the different needs of different markets for products, tires for supporting, exporting, and repairing markets are produced separately, and tyres for special purpose and export-specific use have been developed. At the same time, enterprises are not relaxed in their efforts to save energy and reduce emissions. Reverse osmosis water treatment system project has been completed in January this year, the entire system water rate can reach 70%, the current daily output of more than 1,400 tons of clean water, more than 17% of design capacity; has accumulated production of 97,000 tons of clean water ......

When Premier Wen Jiabao visited Fujian in April this year, he pointed out: "Innovation gains strength, innovation leads the way, innovation wins development, innovation wins dignity. A country and a nation must have their own innovative products, their own intellectual property rights, and a high degree of innovation capability. Cultural literacy can win the respect of the whole world.” Long-distance runners are adept at corners and beyond, and today’s Double Happiness, radial tire production lines and bias tire production lines simultaneously achieve product structure adjustment and energy resource sharing, and have a lot of participation in market competition. Advantages afterwards. It is expected that by 2010, the company will form an annual production capacity of 2.4 million all-steel radial trucks and 1 million bias tires. With the full supply of steel tires and biased tires, and the ability to supply a full range of products for engineering tires, agricultural tires, heavy-duty tires, and passenger tires, the annual sales revenue will reach more than 5 billion yuan.