Xingma Group will develop construction machinery related to heavy trucks

At present, the financial crisis has not yet reached its bottom. Among the more than 90 industrial enterprises monitored by the Municipal Economic Commission, the performance of Shuangxi Tire Company stood out. While most companies experienced declining output and efficiency, Shuangxi reported impressive growth. From January to April this year, the company achieved a sales revenue of 267 million yuan, a 23% increase compared to the same period last year. Tire production reached 356,000 units, up 28% year-on-year, and exports totaled 103,000 units, representing a 24.87% rise over the previous year. Curious about how Shuangxi managed to thrive in such a challenging environment, a reporter recently visited the factory. The slogans on the factory walls—“hard work, pragmatism, innovation, human-centric, and cost-effective”—seemed to reflect the spirit of an old state-owned enterprise that had finally found its way forward after years of struggle. This success wasn’t accidental. In 2009, the global financial crisis continued to impact the tire industry, which remained uncertain. At the start of the year, demand was weak due to low operating rates in the supporting market, and domestic tire sales were at an all-time low. International brands like Bridgestone and Michelin were also competing fiercely for profits, while the export market faced significant downturns due to economic contraction in Europe and the U.S. Faced with these challenges, Shuangxi quickly made strategic decisions. They focused on securing the market and maintaining cash flow, which helped stabilize their operations. Starting from June 2008, the leadership team made careful plans, ensuring efficient resource allocation, prioritizing key customers, and keeping production running smoothly. They also reduced raw material reserves and finished product inventory to historically low levels. In the first quarter of this year, Shuangxi worked closely with existing customers, strengthening relationships through visits to major manufacturers like FAW, Dongfeng, and SAIC Iveco Hongyan. Based on these interactions, they launched a marketing strategy focused on “preserving lines, capturing market share, and accelerating payments.” As a result, sales in the supporting market surged by 39% compared to the same period last year. With government policies promoting the automobile industry in rural areas, the supporting market became more active. Shuangxi shifted its focus to engineering tires, filling a gap in the construction machinery sector. On the export front, they avoided traditional European and American markets and instead targeted countries in Africa, the Middle East, and Latin America that were less affected by the crisis. Now, Shuangxi's products are exported to 34 countries, effectively compensating for the drop in European and American markets and boosting production. To better handle the crisis, the slogan “radial tire cost control, bias tire survival” became central to Shuangxi’s operations. Employees gave up their Saturday off to hold weekly meetings covering quality, technology, and finance. So far, 40 such meetings have been held across procurement, sales, warehousing, and production. In addition, the company invested heavily in new product development. Since 2008, they have introduced 17 new models, increasing the number of all-steel radial tires from 15 to 25, with over 170 varieties available. They now produce specialized tires for different markets, including supporting, exporting, and repair sectors, as well as custom-made options for specific regions. Energy conservation and emission reduction remain a priority. The reverse osmosis water treatment system was completed in January, achieving a water recovery rate of 70%. Daily clean water production exceeds 1,400 tons, reaching over 17% of the design capacity, with a cumulative output of 97,000 tons so far. During Premier Wen Jiabao’s visit to Fujian in April, he emphasized: “Innovation brings strength, leads the way, drives development, and earns respect. A country and nation must have their own innovative products, intellectual property, and high-level innovation capabilities. Cultural literacy can earn global recognition.” Shuangxi, much like a long-distance runner navigating sharp turns, has successfully adjusted its product structure and shared energy resources between radial and bias tire production lines. With a strong presence in market competition, the company is well-positioned for future growth. It is expected that by 2010, Shuangxi will achieve an annual production capacity of 2.4 million all-steel radial trucks and 1 million bias tires. With full supply of steel and bias tires, as well as a complete range of engineering, agricultural, heavy-duty, and passenger tires, the company aims to reach annual sales revenue of over 5 billion yuan.

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