CGN Juner beats ri­vals to sup­ply bumper ma­te­rial for BMW 5 Se­ries

China Daily (Hong Kong) - - BUSINESS - By ZHOU MO in Shen­zhen sally@chi­nadai­lyhk.com

As Chi­nese man­u­fac­tur­ers of auto parts ma­te­ri­als ramp up ef­forts to im­prove qual­ity and pro­mote in­no­va­tion, they are be­com­ing in­creas­ingly pop­u­lar among top au­to­mo­bile brands, in a mar­ket that has long been dom­i­nated by over­seas com­pa­nies.

CGN Juner New Ma­te­ri­als Co Ltd has beaten its in­ter­na­tional ri­vals to be­come the sup­plier of bumper ma­te­rial for the all-new BMW 5 Se­ries, which came into the mar­ket last month.

“We are go­ing to sup­ply bumper ma­te­rial for more than 200,000 ve­hi­cles of the BMW 5 Se­ries and other mod­els of the brand in the com­ing year,” said Zhang Lei, deputy man­ager of the Wen­zhou, Zhe­jiang-based com­pany, a sub­sidiary of Shen­zhen-listed CGN Nu­clear Tech­nol­ogy Devel­op­ment Co Ltd.

CGN Juner spe­cial­izes in pro­duc­ing mod­i­fied plas­tics for ve­hi­cles. Mod­i­fied plas­tics are ma­te­ri­als used in a range of auto com­po­nents, in­clud­ing bumpers, sun vi­sors, dash­boards and steer­ing wheels.

The pro­duc­tion ca­pac­ity of CGN Juner has dou­bled over the past five years, with its cur­rent an­nual ca­pac­ity reach­ing 120,000 met­ric tons. As the com­pany’s new plant in Wen­zhou, with 400 mil­lion yuan ($58.7 mil­lion) of in­vest­ment, comes into op­er­a­tion later this year, the an­nual pro­duc­tion ca­pac­ity is go­ing to grow to 200,000 met­ric tons.

“At the present time, 10 types of mod­i­fied plas­tics pro­duced by our com­pany have been cer­ti­fied, or are in the process of cer­ti­fi­ca­tion by BMW, among which two are al­ready on BMW’s global pur­chas­ing list,” Zhang said.

Com­pared with in­ter­na­tional ri­vals, Chi­nese man­u­fac­tur­ers have the ad­van­tage of pro­vid­ing lower-price prod­ucts and bet­ter ser­vices, which help them gain the up­per hand on the com­pe­ti­tion at the ini­tial stage, he said.

“But in the long run, in­no­va­tion is the key and we are mak­ing great ef­forts on that,” Zhang said, adding that the com­pany is co­op­er­at­ing with BMW on a num­ber of in­no­va­tive projects, such as cut­ting bumper weight and re­duc­ing en­vi­ron­men­tal pol­lu­tion caused by ve­hi­cles.

The com­pany has set up a re­search team of more than 70 peo­ple. Over 3 per­cent of its an­nual sales rev­enue is poured into re­search and devel­op­ment.

Sup­ply of bumper ma­te­rial for top brands, in­clud­ing BMW, Mercedes-Benz and Audi, have long been dom­i­nated by in­ter­na­tional gi­ants, as they have high re­quire­ment for its in­ten­sity, tenac­ity and ‘spraya­bil­ity’.

“At pre­vi­ous times, core tech­nolo­gies re­lated to auto part ma­te­ri­als are in the hands of over­seas com­pa­nies. But now, Chi­nese com­pa­nies have bro­ken through the techno- log­i­cal bar­rier and are able to of­fer high qual­ity prod­ucts,” Zhang said.

In ad­di­tion to BMW, the com­pany has also es­tab­lished part­ner­ship with MercedesBenz and Audi. It sup­plies more than 3,000 met­ric tons of mod­i­fied plas­tics used in Audi mod­els ev­ery year. Also, the cer­ti­fi­ca­tion process is un­der way for the com­pany’s prod­ucts to be used in MercedesBenz mod­els and is ex­pected to be com­pleted in 2018.

China has al­ready be­come the world’s largest au­to­mo­bile mar­ket, with more than 28 mil­lion ve­hi­cles be­ing sold last year, rep­re­sent­ing 13.7 per­cent year-on-year growth.

an­nual ca­pac­ity of CGN Juner New Ma­te­ri­als Co Ltd

TAN KAIXING/ FOR CHINA DAILY

A worker welds parts for a new en­ergy car in a man­u­fac­tur­ing work­shop.

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