Auto Parts&Componets Industry Launch Overseas Purchase
21 May 2009
If Beijing Auto Industry really wants to catch up with its competitors, such as Shanghai, Guangzhou, it has to start from the most basic parts&components industry.
Jingxi Heavy Industries is a joint venture set up special for overseas projects purchase, the company will set up a high-end auto parts&components industry base in Doudian Town. The three shareholders of the company are: Beijing Fangshan State-owned Asset Management Co., Ltd., Shougang Group and Baoan Investment and Development Co., Ltd.Shougang Group invests 408 million RMB, accounts for 51% of total shares, the latter two separately invest 2 million and 192 million, accounts for 25% and 24% of total shares. Baoan Investment and Development Co., Ltd affiliated to Tianbao Group.
Once successful, Beijing Municipal Government will contribute to the biggest international Merger and Acquisition that China's auto parts&components industry involves in the financial crisis.
Experts in auto industry think the reason why Beijing doing this is because of its relatively weak basis in Beijing Auto Industry. "Unlike Shanghai and Guangzhou, with Shanghai Volkswagen, Guangzhou Honda, Guangzhou Toyota's set up, they both have developed their own local parts&components supply system.CKD enterprises in Beijing mainly include Beijing Benz, Beijing Hyundai and Beiqi Foton, etc. , parts&components supply for the former two joint venture are mainly from foreign suppliers, the core matching of Foton is not in Beijing. Beijing Auto Industry does not have its own power in the parts&components supply system. "
On the other hand, because of the global financial crisis ,parts&components manufactures in United states and other countries are severely affected, it’s just the right time for China’s overseas purchase, “The parts&components will become cheaper and cheaper”. One parts&components supplier said.
It can be said that the financial crisis provide an opportunity for Beijing Auto Industry to catch up.
Before this, Geely Auto has purchased DSI, which is the world's second largest transmission company, the contact between Weichai Power and parts&components in France mark that China's auto parts&components enterprises have launched overseas purchase in the financial crisis.
Source : english.chinabuses.com
Editor : Grant
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