Sinotruck revs up fac­tory plans

China Daily (USA) - - BUSINESS - By JU CHUANJIANG and ZHAO RUIXUE in Ji­nan Con­tact the writ­ers through zhaoruixue@chi­nadaily.com.cn

China Na­tional Heavy Duty Truck Group, the coun­try’s largest truck man­u­fac­turer by rev­enue, will speed up ef­forts to de­velop man­u­fac­tur­ing fa­cil­i­ties in coun­tries along the Belt and Road to bat­tle slug­gish ex­ports, a se­nior com­pany ex­ec­u­tive said.

The­com­pany, also known as Si no truck, will con­sider ac­qui­si­tion sand in­vest­ment in these coun­tries to pro­duce di­ver­si­fied prod­ucts lo­cally, Yang Zhengxu, gen­eral man­ager of Sinotruck Im­port and Ex­port CoLtd, said on Monday.

Sinotruck cur­rently has eight over­seas man­u­fac­tur­ing fa­cil­i­ties in coun­tries in­clud­ing Rus­sia and Viet­nam.

Two man­u­fac­tur­ing bases are un­der con­struc­tion, one in Nige­ria and the other in the Philip­pines, said Yang.

The over­seas man­u­fac­tur­ing fa­cil­i­ties have been de­signed with a to­tal an­nual pro­duc­tion ca­pac­ity of 18,700 ve­hi­cles.

Yang said build­ing over­seas pro­duc­tion bases could help over­come in­ter­na­tional trade bar­ri­ers and fa­cil­i­tate its ex­ports by pro­vid­ing bet­ter ser­vices.

Cus­toms data show Chi­nese heavy truck com­pa­nies had a 31 per­cent year-on-year de­crease in ex­ports dur­ing the first seven months of this year due to slug­gish mar­ket de­mand. How­ever, Sinotruck man­aged to beat the in­dus­try av­er­age, re­port­ing a 6.7 per­cent year-on-year de­crease in ex­ports.

The com­pany ex­ported 27,000 trucks in 2015, ac­count­ing for one-third of the com­pany’s to­tal sales. It aims to have over­seas mar­kets ac­count for 50 per­cent of its over­all sales by 2020.

Wang Zhile, a se­nior re­searcher at the Chi­nese Academy of In­ter­na­tional Trade and Eco­nomic Co­op­er­a­tion in Bei­jing, said decades of ef­forts on tech­no­log­i­cal de­vel­op­ment had en­abled Sinotruck to com­pete with global ri­vals.

“To be global, a com­pany should cul­ti­vate a global value chain to make op­ti­mal use of its re­sources in over­seas mar­kets,” saidWang.

One dif­fi­culty in tap­ping into a for­eign mar­ket is dif­fer­ent na­tions’ vary­ing laws, stan­dards and re­quire­ments for au­to­mo­biles, Yang said.

“We’re di­ver­si­fy­ing our prod­ucts to meet the de­mands of dif­fer­ent clients, such as for cus­tomers in some African coun­tries, our ma­te­ri­als need to be heat­proof,” said Yang.

To bet­ter in­te­grate into the lo­cal mar­ket, Sinotruck en­cour­ages its sales staff to learn for­eign lan­guages and be­come bet­ter ac­quainted with the lo­cal cul­ture.

Yang said that the com­pany will launch an app within the next year that is aimed at help­ing cus­tomers pur­chase its prod­ucts and after-sales ser­vices in over­seas mar­kets.

We’re di­ver­si­fy­ing our prod­ucts to meet the de­mands of dif­fer­ent clients.”

-Yang Zhengxu, gen­eral man­ager of Sinotruck Im­port and Ex­port Co Ltd

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