China hopes to raise much-needed domestic rubber production to reduce reliance on imports

The industry said that the world's largest rubber consuming countries China hopes to increase domestic production to reduce import dependence, as is expected by 2010 demand will increase by more than 30 percent, to about 5,000,000 tons.

China Rubber Industry Association, Ju Hong Zhen Friday in Indonesia to attend a banquet before the industry told Reuters, "We need more rubber, raw materials, but is a big problem."

"We are willing to self-reliance." He said through an interpreter.

But he also said that China will seek to Indonesia, Thailand and Malaysia and other Asian countries to do transactions in order to increase the supply.

"In order to improve the raw materials (supply), we are willing to go out of the country and to build rubber plant, rubber tree plantation." He said.

Chinese industry officials said Thursday that China has reached an agreement with the Government of Malaysia to develop the local rubber plantation industry; At the same time, China's official media reported that a Chinese company earlier this year and Cambodia have signed an agreement in the local rubber plantations.

Ju Hong Zhen said that China's annual rubber output of about 500,000 tons, and plans to start another five-year plan period, production will be increased to 750,000 tons due to rising Jiaojia has been a burden to tire companies.

He added that China this year and Synthetic rubber consumption is estimated at 3,800,000 tons, 3,600,000 tons last year.

Ju Hong Zhen said, it is expected that by 2010 China will tire production in 2005 estimated 250,000,000 to 320,000,000.

He said that the government encourages farmers to plant more to cope with rubber plantations and to improve technology in order to meet the demand.