Taste the sweetness of overseas layout, GM overseas base to expand production. This evening, the company announced the launch of the second phase of the Cambodian project to further expand production capacity.
Since 2023, with the improvement of the industry prosperity, the Sailun tire ,Sentury and other industry leaders overseas intensive expansion of production capacity, of which the wheel tire has been in Vietnam, Cambodia and Mexico three countries layout, Sentury overseas base includes Thailand, Spain and Morocco three places.
Industry insiders said that raw materials, labor and other cost advantages, preferential tax policies, close to the market, etc., are the considerations for domestic tire companies to choose to go out. Up to now, the overseas bases of domestic tire companies have been all over Asia, Africa, Europe and North America four continents, and are providing more and more support for relevant companies to enhance global market share, and domestic head tire companies have initially had an "international model."
Since the fourth quarter of last year, under the influence of many favorable factors such as the decline in the cost of raw materials in the tire industry, the return to normal shipping costs, the rise in tire sales prices, and the recovery of sales, the tire industry has become better, and domestic tire production has increased capital expenditure, however, the "internal volume" situation in the domestic market is still the same, and the pace of overseas construction of Chinese tire companies has accelerated this year.
This evening, General shares issued an announcement that the wholly-owned subsidiary of Cambodia intends to invest in the construction of Cambodia's high-performance radial tire project (Phase II), with an annual production capacity of 3.5 million semi-steel radial tires and 750,000 all-steel radial tires. The total investment of the project is 1.495 billion yuan. After the completion of the project, the company's Cambodia base will have an annual production capacity of 8.5 million TBR and 1.65 million PCR.
Gu Cui, chairman of the company, said earlier that the company has built tire factories in Thailand and Cambodia, and the company's Thai factory maintains production and sales and full capacity production; At present, the double reverse tax rate of tire exports to the United States is zero, and the company's overall production capacity is continuing to accelerate its climb and strive to reach full production in 2024. The company will continue to accelerate the international layout and promote the location of competitive overseas production bases.
On December 15, Sailun Singapore and Mexico TD signed a Joint venture Agreement. According to the Joint Venture Agreement, the two parties intend to establish a joint venture company in Mexico to invest in the construction of an annual output of 6 million TBR project. In the future, the joint venture company is also considering the construction of an annual output of 1.65 million PCR project.
This is less than 2 months from the company's announcement in October that it intends to invest 1.474 billion yuan in the construction of Cambodia's annual output of 6 million TBR project. Previously, the company's bases in Cambodia and Vietnam have a production capacity of tens of millions of tires.
Sentury also continues to promote the global layout. The company's Thailand phase II "Mori Kirin Tire (Thailand) Co., LTD. 's annual output of 6 million TBR and 2 million PCR expansion project" has been basically completed, and it is expected to be put into large-scale production in 2023; The construction of the European base "Spain Annual output of 12 million tires project" and the African base "Senkirin (Morocco) annual output of 6 million tires project (Phase I)" was accelerated.
Chinese tire companies have accelerated their overseas layout, and Cambodia, Thailand, Vietnam and other places in Southeast Asia have become the first choice for domestic enterprises, and Europe, North America and even Africa have also received more and more attention.
"Chinese tire companies will consider supply chain security, costs, markets and other factors when going global." The relevant person in charge of a tire company in Shandong told Cailiannews that overseas because of lower labor costs and closer to natural rubber production areas, profits are more lucrative. In addition, in recent years, the US government has been adopting various trade barriers against Chinese imports, such as tariff and non-tariff barriers, which has increased the difficulty and cost of Chinese enterprises to invest in the US, which is a passive factor for domestic enterprises to layout overseas.
According to incomplete statistics, at present, more than ten Chinese tire enterprises have set up factories in Southeast Asia, such as Zhongce Rubber, Linglong Tire, Sailun Tire, Senkilin Tire, General Stock, Shuangqian Tire, Pulin Chengshan Tire, Guizhou Tire, Chaoyang Langma Tire and Double Star Tire.
In Europe, there are Linglong tires and Sen Kylin to the layout. Africa and North America were the first to "break the ice" by Kirin Mori and Sai Lun respectively.
At present, Chinese tire companies are rapidly building factories overseas to rapidly increase global market share. Although there is still a large gap between the domestic tire head enterprises and the global tire industry giants at 150 billion yuan level revenue and 10 billion yuan level profit, the distance is getting closer and closer, it can be said that they have seen their back. In particular, the fastest companies have initially acquired an international style.
