Where do china mold factory choose to invest overseas?

Time:2019-07-05 08:37:01 / Popularity: / Source:

china mold factory 
Where do china mold factory choose to invest overseas? With development of modern industry, application of molds is more and more extensive. In products of automobiles, electronics, instrumentation, home appliances, aerospace, building materials, motors and communication equipment, about 60%-80% of parts and components must rely on moulding manufacturing process, it is called "mother of industry."
Molds are widely used in manufacturing of machinery, electronics, automotive, communications, aerospace, aerospace, light industry, military, transportation, building materials, medical, biological and energy. In these fields, 60% to 80% of parts rely on moulding manufacturing process.
Statistics show that in 2016, amount of molds used in China's auto industry reached 68 billion yuan. In the whole year, about 100 new models were introduced. More than 200 models were partially replaced. 95% of auto parts were developed by molds. Household appliance industry used 17 billion yuan of household mould, and 90% of home appliance parts were made of mold parts; Electronic information manufacturing industry represented by smart phones has a electronic molding consumption of 80 billion yuan, and 80% of parts are electronic molding parts. In addition, mold support China's communications equipment, aerospace, urban rail transit, medical equipment and other manufacturing industries, had achieved rapid growth.

Where do china mold factory choose to invest overseas?

Automotive molding:

automotive molding 
As we all know, Europe is birthplace of world's automobile industry. It has world's leading automotive technology and has been leading world's automotive industry for 100 years. Six of world's 10 largest auto companies are from Europe, accounting for more than 60% of global auto market.
In recent years, with continuous improvement of status of Chinese enterprises in international division of labor in automotive field, cooperation between Chinese and European companies has become increasingly close. More and more European automakers have proposed to set up factories in Europe or establish European sales networks in China in order to get close to production site or consumer market. In addition, due to factors such as EU “double-reverse” investigation, pace of investment by Chinese auto parts suppliers in Europe has accelerated, which has indirectly stimulated Chinese automotive molding leading enterprises to go abroad and follow parts suppliers to enter European Free Trade Zone to form an industrial agglomeration effect.
In 2016, Yanfeng Interior opened a second factory in Czech Republic. In 2017, Linglong Tire announced an investment of 500 million US dollars to build a European factory. In 2018, Ningde era completed the first European factory site selection, is about to enter investment construction stage.... .
Correspondingly, in 2016, domestic automobile precision mold leading enterprise Chunxing Seiko Poland factory was basically completed.

Home appliances and consumer electronics mold:

Europe is also birthplace of household appliances, Europeans have a deep understanding and inheritance of home appliances. After baptism of two world wars in modern times, Europe has experienced rapid development in manufacturing and product design. European consumers' perceptions of home appliances are also incomparable to consumers in other regions.
Elimination speed of home appliances and short technology update cycle require home appliance manufacturers to improve efficiency in production, procurement, and upstream assembly based on home appliance mould, so that they can keep up with pace of technological change and will not be easily imitated by competitors. In global competition of home appliances and consumer electronics structural parts, China's metal, plastic and new materials structural parts suppliers have outstanding performance, and also become vanguard of China's greenfield investment in Europe.
In 2007, Shengli Precision Mold invested in a factory in Lodz, Poland. In 2012, they set up a factory in Gorzów, Poland to implement a flat-panel TV structural module production project. In 2012, Shengli Precision set up a factory in Belarus, mainly producing plastics, metals, and base assembly products for home appliances.

Where do china mold factory choose to invest overseas? Why do china mold factory overseas favor investing free trade zone?

There are several advantages to investing free trade zones:
1. Water, electricity, gas and communication infrastructure of free trade zone is perfect, railway, highway, sea and air transportation are convenient and developed, have strong connectivity, which is essential for factory supply chain management;
2. Support policy for free trade zone is extremely favorable. The first ten years were exempted from corporate income tax, and the latter six years were halved. Exemption from customs duties, value-added tax, withholding income tax, capital gains tax; exemption of various central and local government taxes; enterprises with an investment of more than 100 million euros in free trade zone can enjoy up to 50% of subsidy.
3. Enjoy green passage of customs clearance, no import and export licenses, direct access to international airports and ports, no warehousing restrictions, and no restrictions on amount of labor dispatched;
4. Raw materials or semi-finished products can enter park duty-free, carry out warehousing and logistics, bonded processing, packaging, assembly and labeling in free trade zone, so that products become “made in EU”, then exported to other countries or domestically in EU. On one hand to enhance product consumer awareness, on the other hand, adjustments can be made in a timely manner according to consumer preferences or needs.

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