In recent years, while tire manufacturers have been going overseas to build factories, upstream companies have also started to expand overseas at a rapid pace, including Daye Shares latest announcement of a factory construction plan in Morocco, and Himile Mold, Mesnac, Yanggu Huatai and others have all increased their overseas investments to keep pace with the tire companies.
Shandong Daye: 1.485 billion yuan invested in Morocco
On October 30, Shandong Daye issued an announcement that it plans to invest 1.485 billion yuan to build a production base in Morocco.
The announcement pointed out that in order to cope with the increasingly fierce international trade frictions, avoid the risks of international trade frictions, reduce the concerns of European and American customers about the security and stability of the supply chain, and accelerate the promotion and improvement of the company's strategic layout of overseas manufacturing bases, Daye Shares plans to invest approximately 1.485 billion yuan to build a tire bead wire and steel cord production base in Morocco.
The project will be constructed in two phases. The first phase plans to invest RMB 850 million to build a 40,000-ton/year tire bead wire production project and a 40,000-ton/year steel cord production project, and the second phase will invest RMB 635 million.
The construction period of the first phase of the 40,000-ton/year tire bead wire production project is planned to be two years. Construction is scheduled to start in January 2025 and is expected to be completed and put into operation in December 2026. The construction period of the first phase of the 40,000 tons/year steel cord production project is planned to be two years. Construction is scheduled to start in January 2025 and is expected to be completed in December 2026.
After the completion of all projects, the Morocco base will have an annual production capacity of 100,000 tons of tire bead wire and 100,000 tons of steel cord. Shandong Daye's investment accounts for 100%.
Mesnac: Targeting Thailand and Vietnam
On June 11, Mesnac announced that it would invest RMB 106.81 million and RMB 27.97 million respectively to build factories in Vietnam and Cambodia. The factories in the two locations have similar businesses, mainly engaged in special equipment for rubber processing, metal cutting machine tools, mold manufacturing and mold cleaning services.
Mesnac said that this investment will better meet the needs of overseas markets, enhance the company's ability to cope with international trade barriers, and improve its competitiveness and market share. After the project is completed, it is expected to increase net profits by 10 million yuan and 3 million yuan each year respectively.
Himile Group: Opening of production base in Mexico
On April 20, the opening ceremony of the Himile Group’s Mexico production base was held. It is reported that the foundation of Himile's Mexican subsidiary was laid in May 2023, with an annual production capacity of 1,200 pairs of cast aluminum tread blocks, 1,500 pairs of side panels, and mold maintenance and repair. Orders were accepted as soon as the business opened, and the first batch of orders are currently being urgently produced.
As of now, Himile has 8 overseas companies, located in 8 countries including the United States (2013), Thailand (2014), Hungary (2015), India (2016), Brazil (2020), Vietnam (2021), Cambodia (2023), and Mexico, and its global service system has been further improved.
Yaokun Moulds: Cambodia is the first choice
On July 17, Shandong Yaokun Moulds Co., Ltd. held a signing ceremony in the Kratie Special Economic Zone in Cambodia and built its first overseas production base - Yaokun (Cambodia) Moulds Co., Ltd.
Yaokun Moulds plans to invest US$5 million to build a high-standard mould processing workshop in Cambodia. The project is located in Zhongqi Industrial Park, Kratie Special Economic Zone, Cambodia. It covers the entire Southeast Asian market with Cambodia as the base. The construction period is 9 months and it is expected to be completed and put into operation in March 2025.
In addition, Yanggu Huatai announced on July 2 this year that it plans to invest in a new rubber additive production base in Thailand. The total investment in the first phase of the project will not exceed US$37.6 million, including but not limited to the purchase of land, construction of production plants, purchase and construction of fixed assets and other related matters.
In general, China's upstream and downstream tire industry chain is not only becoming increasingly complete domestically, but is also expanding its overseas layout and global influence.
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