Recently, Fuyao Glass Industry Group Co., Ltd. announced that it will invest 220 million U.S. dollars to establish a wholly-owned "Fuyao Russia Float Glass Co., Ltd. (tentative name)" in Kaluga, Russia, and build a float glass project, while investing 2 Billion Dollars set up a wholly-owned "Fuyao Glass America Co., Ltd. (tentative name)" in Ohio, and established a car safety glass project. Prior to this, on September 15th, Shaanxi Fast Automotive Transmission Group Co., Ltd. invested 500 million yuan to establish Fast Automotive Transmission (Thailand) Co., Ltd. in Thailand to produce transmission products with independent intellectual property rights.

Fuyao Glass and Fast, the two leading players in the field of automotive glass and heavy-duty transmission in China, stood on the international stage built by themselves. Compared with the cases in which China’s auto industry’s "local tyrants" vehicle or parts and components companies have externally involved hundreds of millions of United States dollars and many billions of dollars in mergers and acquisitions, they have brought us different ways. The dawn. Does this mean that the arrival of the overseas construction of Chinese parts and components enterprises will come to an end? Or is it just a fantasy dance of Fuyao Glass and Fast?

Demand to expand factories becomes inevitable

Fuyao Glass has occupied a place in the mature European and American markets of automobile accessory systems. Such achievements are not achieved overnight, but have been laid out for a long time. The announcement of Fuyao Glass shows that the Fuyao Russia float glass project was established to respond to the rapid growth of automobile consumption in Russia in the past five years. In fact, Fuyao Glass has invested in the automotive glass production base in the Volkswagen Industrial Park in Kaluga City, the capital of California, Kaluga, and this new investment can be used to resolve the base's demand for high-quality float glass at the automotive level. The supply of raw materials is safe, reducing costs, and it also meets the demand for quality float glass in Russia and neighboring countries.

It is understood that Fuyao's investment plans to build two auto-grade float glass production lines, and the annual production capacity of 450,000 tons of high-quality float glass can be achieved. For Fuyao Glass, the United States is the most important and earlier overseas market. According to the statistics, as early as 1995, Fuyao Glass had set up a factory in the United States. However, due to the high operating costs in a few years, it turned to only sales. Today, Fuyao Glass has once again made its foray into the US market, and it is building a factory in Ohio, USA. It is mainly to meet the growing demand for automotive safety glass in the US automobile market, and finally to form an annual production capacity of 3 million sets of automotive safety glass.

With the layout of the entire vehicle optimistic about the potential market

In the field of domestic heavy-duty commercial vehicle transmissions, Shaanxi Fast has the largest market share and is recognized by automakers. Fastest Thailand's construction is a response from Fast to the international market. It is understood that Fast Automotive Transmission (Thailand) Co., Ltd. has settled in Rayong, Thailand, with a total investment of 500 million yuan. It mainly produces 6-speed, 9-speed, 12-speed, and 16-speed dual-shaft transmissions with independent intellectual property rights. It is the only designated supplier of Volvo Thailand's commercial vehicle project. After full production, it can achieve an annual output of 70,000 medium and heavy-duty vehicle transmissions, with an expected sales income of 1 billion yuan.

Li Dakai, chairman of Shaanxi Fast Group, said that the main reason for Fast to dare to build plants overseas is the high demand of Fast on product quality. Fast's products passed Volvo's rigorous review and showed that Fast had obtained The recognition of the international market. One of the factories in Thailand is to satisfy Volvo's product demand, and the second is to radiate the Southeast Asian market. At the end of 2015, after the establishment of the ASEAN Economic Community, related tax reduction and exemption policies will help Fast to participate in international market competition.

Looking for relatively controllable patterns of risk

Southeast Asia has always been a sacred place for major international automobile companies to invest in, and the very rich rubber resources in Southeast Asia has also attracted many tire companies to build factories here. It is understood that at least five tire companies in China build tire factories in Southeast Asia. Shandong Linglong Tire is one of them. Its overseas factory is located in Thailand. Construction started in January this year. It is expected that new products will be released early next year.

Wang Feng, chairman of Shandong Linglong Tire, said that for Chinese tire companies, there are three requirements for overseas plant construction. First, full and effective use of raw material resources, reduce logistics and labor costs, the second is to build factories overseas to respond to anti-dumping policies, avoid trade barriers, reduce The third is the policy support and management protection of the country’s “going out” strategy.

Wang Feng said: "In the international development trend, Linglong Tire chose to invest and build overseas factories because of the high cost of overseas investment and acquisition, and the risk of integration of operating risks and culture is very large. Compared to overseas investment acquisitions, In terms of development methods, setting up factories overseas is a development model with a relatively controllable risk."

It is difficult to build a factory overseas

For auto parts companies to build factories overseas, Chen Yuanzhi, director of the Parts Department of China Automobile Industry Association, said that at present, the overall development of the auto parts industry in China is still not mature enough. Many companies have poor R&D capabilities and weak technology bases. The blind investment of overseas companies is difficult to estimate. . Compared with acquisitions, setting up factories overseas is a mature performance of the company and an inevitable demand for natural development. Obviously, there are few companies that satisfy such conditions.

Li Zhifa, general manager of Lingyun Industrial Co., Ltd., believes that the acquisition can be promptly promoted after the requirements of the two parties are in conformity with each other. It is difficult to manage at a later stage, and investing in factories requires more exchanges with the local government. The understanding of the work, preparation in advance will be more time-consuming and labor-intensive.

Wu Tusheng, vice president of sales for Zhejiang Longsheng Automotive Parts Co., Ltd., stated that the auto parts companies must analyze the specific circumstances of the establishment of factories overseas, different countries and regions, different products, different production methods, and the dependence of the products on raw materials. The degree will affect the ultimate success of overseas construction. The most important point is that the "expansion" of parts and components companies must first be managed as "housekeeping," and they must take a certain share of the domestic market before they can go abroad. "Housekeeping" is not done well. It is difficult to achieve overseas factory construction. Parts and components companies should not be impetuous.

Wu Tusheng also said that vehicle companies have brought parts and components companies out of the country on the premise that the two companies have close “blood” relationships, or have equity relationships, or have long-term cooperation agreements. Some zero-sum cooperation models are still applicable in the country, but they may not be effective when they are obtained abroad. This also requires concrete analysis of specific situations.



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