Earlier this year, a Chinese national TV program exposed what it claimed were poor practices in the mixing room at Kumho Tire Co. Inc.’s tire factory in Tianjin, with the resulting impact leading the company to consider withdrawing completely from the Chinese market.
The reaction among the Chinese consumers seems to far outweigh the reality of the relatively minor problems at the factory, according to an analysis of the situation by the China Rubber Industry Association (CRIA).
A detailed report on the subject posted on the CRIA website analyzed the issues involved and examined whether such problems may occur in the future. It also analyzed in some depth the current state of rubber mixing in Chinese tire factories.
A major contributor to the crisis affecting Kumho’s Tianjin factory was the fact that the South Korean tire maker had been using more than 20 percent of process scrap back into its mixing process. The CRIA report showed that the 20 percent figure was a limitation imposed by the China government in 1991, long before China became a world power in the rubber and tire industry, and when there was much greater reliance on natural rubber.
Following quality issues at the Kumho factory in Tianjin, China’s tire industry started a quality improvement program at its plants. In May the CRIA unveiled a 15-point program that was to take effect at all tire factories in the country. Elements of the program include spot checks on quality; better sampling methods; strict market access based on certifications; and strict penalties against companies breaching the guidelines.
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