Fuyao invested heavily in the U.S. automotive glass market
Fuyao Group has successfully acquired the Mt. Zion factory of PPG company in the United States and increased its capital, setting a record for the largest investment of Chinese auto parts enterprises in the United States
in the words of caodewang, chairman of Fuyao Group, Fuyao Group's recent momentum of going out and investing is "very strong". From 2011 to now, the amount of foreign investment approved by the state of Fuyao Group has reached 600million US dollars
previously, Fuyao Group has successfully acquired the Mt. Zion factory of PPG company in the United States and increased its capital, setting a record for the largest investment of Chinese auto parts enterprises in the United States to ensure the stability and reliability of their products
investment in the United States will also increase
in the wave of "going global" of Chinese enterprises, Fuyao Group entered the American market at a speed close to "trotting"
in January 2014, Fuyao Group officially entered the United States and built a new auto glass factory on the site of the former General Motors factory in Ohio, with an investment of about $200million
on July 17, Fuyao America bought MT of PPG in Illinois for us $56million. Zion factory assets. After the handover of assets, Fuyao Group quickly increased the capital of its U.S. company by $200million, and carried out subsequent upgrading of the acquired plant. The industrialization of poly amino acids prepared by global biological method has made slow progress
therefore, up to now, the total investment of Fuyao Group in the American automotive glass project and its supporting float glass project has exceeded US $400million, making it the largest venture for Chinese auto parts enterprises to enter the American market
when holding the property right transfer ceremony in Fuqing City, Fujian Province at the end of August, Cao Dewang publicly said: "Fuyao Group will focus on the United States in the near future, and its investment in the United States will increase." In fact, Fuyao Group first went to sea in July, 2011. The destination at that time was Russia. The total investment of the first overseas production base project located in Kalu, Russia, is $200million. The first phase of the project was successfully completed and officially put into operation in September last year
in Cao Dewang's blueprint, Fuyao will be built on a scale as large as that in China in the United States. "The results of white rabbit intraocular pressure test show that the intraocular pressure drops significantly and the drug action time has exceeded 48h. Maybe the South American market is also very good, but I think it is time to calm down and do a good job in the United States and Europe."
U.S. manufacturing taxes are low
Cao Dewang is associated with the United States, and Gu Moli is a "matchmaker". Gu Molly is the Vice Consul of Commerce of the U.S. Consulate General in Guangzhou. Last summer, Cao Dewang accepted the invitation of the U.S. Consul General in Guangzhou to participate in an American Forum held in Guangzhou and had in-depth talks with U.S. officials and industry figures for the first time. Subsequently, he was invited to visit the United States and conducted field research in the United States
for Cao Dewang, the decision to invest in the United States is not tangled
he said that nearly 50% of Fuyao Group's products are exported. Therefore, today's internationalization only moves the production base to the forefront of the international market
of course, this entrepreneur who knows how to settle accounts also knows that investing and building factories overseas will bring more orders and profits to Fuyao
Bai Zhaohua, vice president of Fuyao Group, said that due to the 45 day cycle of product transportation, customers, considering the stability of supply, would like Fuyao to have a factory in the local area, and Fuyao also has such strength
"building factories overseas will definitely increase orders." Bai Zhaohua said, "the United States clearly told us that if we build our production base, the order will double. If we don't buy it, the customer will lose money."
according to the goal of internationalization, if Fuyao produces 30% of its products overseas, it needs to establish 5-8 factories. But at present, Fuyao has only one overseas production base in Russia. In two years, the factory in Ohio will be able to produce 4million sets of products, covering 1/3 of the U.S. market. "If the competitors are depressed, Fuyao will produce more." Bai Zhaohua is very honest
in Cao Dewang's heart, an account of investing in the United States is also easy to calculate
"the wages and benefits of American workers will account for 40% of the total turnover, which is indeed higher than that of China. But the tax burden of manufacturing industry is less. Only income tax is levied, and there is no turnover tax, so half of it can be left. In addition, American energy is also cheaper than that of China. For example, the price of natural gas is only 1/5 of that of China. This is a great encouragement for our investment." Cao Dewang talked eloquently
of course, he said he also took into account the strong trade union forces in the United States. But comparatively speaking, he believes that it is Fuyao's long-term policy to respect employees and share achievements with employees in the development of the enterprise. Therefore, he believes that Fuyao Group can try its best to win the understanding and consensus of the trade union
then why choose to acquire old factories in the United States rather than build new plants from scratch? The considerations are not complicated. Bai Zhaohua told that when he first inspected and bought a factory in the United States, the U.S. government told him that he must go through a strict environmental protection evaluation process. On balance, it is more convenient and cheaper to buy ready-made plants for transformation
"the boss can calculate the account after a turn, and it won't take long." Bai Zhaohua said
happy acquisition negotiations
caodewang said that Fuyao Group began to cooperate with PPG company 11 years ago to accept its transferred technology. Therefore, as an old friend of more than ten years, PPG company in the United States immediately contacted him when it heard that it was going to the United States to investigate, and told him that the company was restructuring and wanted to transfer two production lines of float glass to Fuyao Group
in his view, PPG's willingness to transfer its production line is a generous act of "timely help" for Fuyao. After the handover of assets, these two production lines can be upgraded and transformed into an automobile grade high-quality float glass production line with an annual output of 30 tons, which will fully meet the raw material demand of Fuyao America's automobile glass production project in Ohio
Richard beuke, vice president of PPG in the United States, told leading finance that PPG decided to withdraw from the glass industry in 2008, and only half of the old factory established in 1958 was running at that time. "So I'm glad to talk about restructuring with Fuyao."
this is the largest investment case of Chinese auto parts enterprises in the United States. After "a happy negotiation" with the unanimous statement of both sides, it has achieved what Cao Dewang called "a real deal of mutual benefit"
according to Bai Zhaohua, if PPG wants to sell its production line, Fuyao Group may be its only choice. As a manufacturer focusing on automotive glass, Fuyao Group has the largest production capacity in the world, accounting for nearly 20% of the global total. Whether in technology, capital or market, it has the strength to acquire and further transform
subsequently, in the announcement on July 29, Fuyao Group said that it would increase the capital of Fuyao US company by US $200million (including US $56million involved in the purchase of assets), and set up a wholly-owned subsidiary in Illinois, the United States, which will invest in Mt. The Zion plant was upgraded to provide raw materials for the automotive glass plant in Ohio
accelerate internationalization and maintain competitive advantage
yesterday, Chen Xiangming, Secretary of Fuyao Group, was not contacted, and he has been in the meeting. It was learned that the Fuyao American automotive glass project is planned to be put into production at the end of 2015, and will take the lead in providing supporting services to GM, Chrysler, Toyota, Honda, Hyundai and other vehicle customers
in the announcement and semi annual report on July 29, Fuyao Group mentioned "accelerating internationalization". In fact, Fuyao Group is the leading manufacturer of automotive glass in China and the second largest in the world. In recent years, it has accelerated its overseas layout to maintain an advantageous competitive position
Fuyao Group disclosed in its semi annual report in July that its advantages in overseas markets continued to show, and the revenue in foreign markets increased by 15.84% year-on-year, while the revenue in domestic markets increased by only 11.56% year-on-year in the same period. According to the report, overseas investment has continued to improve the foreign market share, enhanced the company's comprehensive competitiveness, and is conducive to the company's more healthy, sustained and stable growth
China glass () Department