Tire companies are eager to promote the internationalization process

The strategy of “going out” has been achieved in 15 years, since it was explicitly put forward during the Third Session of the Ninth National People’s Congress in March 2000. The implementation of the “Belt and Road” national strategy has created new historical opportunities for Chinese enterprises to “go global”.

Domestic rubber tire companies have a strong "going out" willingness
Domestic rubber tire companies have a strong "going out" willingness

The media learned that domestic rubber tire companies have a strong “going out” will. However, people in the industry also emphasized that nowadays companies “going out” must change the concept of product output in the past, pursue higher-level industrial output, achieve win-win cooperation, and allow local companies, people, and host countries to truly benefit from the use of Chinese rubber tires. Enterprises become partners they can rely on to establish a brand image in the international market.

Rubber companies are on the move

In order to break through the bottleneck of raw materials, China’s earliest “going out” representatives are tire upstream companies such as Guangyu Rubber, Sinochem International, and Hainan Rubber. They set up factories and build rubber plants in the world’s most rubber-rich Southeast Asian countries. A sexual step.

“Depending on the needs and characteristics of the host country, we have different strategies for 'going out'. For example, Thailand has protective measures for rubber planting. We have established a processing plant in the northeastern region of Thailand to help local farmers get rich; Cambodia has land As for the advantages, we have focused on plantations, and in recent years we have also extended to other economic crops and promoted local economic development,” said Chen Wei.

Tire enterprises break through barriers

In order to break through barriers to overseas trade, in recent years, the racing wheels Jinyu, Linglong Tire , Chinagce Rubber Group, and Sen Unicorn Tire have accelerated the pace of foreign construction and promoted the process of China's tire internationalization strategy.

Sai Yuen Jinyu Co., Ltd. began investing in Vietnam in 2011 to set up a Saiwan (Vietnam) Co., Ltd. project with a total investment of US$95 million. At present, semi-steel tires have been put into production profits. Now the company has started the second phase of the project, and the construction scale will increase to an annual output of 7.8 million semi-steel radial tires and 15,000 tons of all-steel engineering tires.

The first foreign "turnkey" project of software control - the MEC (Myanmar Economics) tire factory was formally put into operation two years ago, and Myanmar has had its own tire brand since then.

Linglong International Tire (Thailand) Co., Ltd. has completed the production of 2 million high-performance semi-steel radial tires in February 2014 for the first phase of the project; the second phase of the all-steel radial tire project started construction in June 2014. May 28, 2015 The first tire went off the assembly line. The exquisite company's global strategy is based on Thai factories and eventually reaches three overseas manufacturing bases.

On August 4, 2014, Mori Kirin Tire Co., Ltd. and Thailand Taihua Gum Co., Ltd. held a land contract signing ceremony, and Sen Qilin's overseas deployment strategy was officially launched.

It is understood that this tire project is located in Lisheng Rubber Industrial Park in Rayong Province, Thailand. It plans to produce 10 million tires a year. “The location of the plant is just a fancy and uses Thailand's rubber resources, trade and location advantages.” Sen Linlin, general manager of Lin Yulong told the media.

On June 29th, 2015, Chinace Rubber (Thailand) Co., Ltd. held its opening ceremony in Thailand's Thailand-China Rayong Industrial Park. The plant is the first factory built by the Chinachem Rubber Group in overseas and is currently the largest tire factory in Thailand. It covers a total area of ​​approximately 876 acres. Since the official opening of the building on November 7, 2014, and on the downline of the first PCR tires on May 25, 2015, China Strategic Thailand Corporation has created a factory miracle.

It is understood that at present, the base mainly produces semi-steel radial tires, and by the end of 2015, it will reach a production scale of 5 million pieces/year. Shen Jinrong, chairman of Zhongce Rubber, said that the production base will also invest some of the full steel tire capacity in the future.

Carbon black companies eager to try

In March 2015, Wanda Group's Shandong Neste Carbon Black participated in the rubber tire exhibition in Indonesia. Chief engineer Chen Xinzhong received information from the exhibition. Indonesia has 5 multinational tire companies and 8 local companies. The amount is about 500,000 tons. Currently, only Cabot's carbon black production enterprises have a gap of about half. Just exporting carbon black to Indonesia requires paying 5% of the import tariff. It is understood that local labor costs are very low and the wages are only RMB 1,600/month.

"The overcapacity of domestic carbon black, the large number of products exported, and the price fight in the international market have caused India to anti-dumping against Chinese carbon black. If carbon black companies build factories abroad, such as Indonesia, India and Thailand, they should be a way out," said Chen Xinzhong.

The marketing manager of a well-known steel cord manufacturer in China told the media that the company also intends to follow the pace of tire companies and invest in factories in Thailand.

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