12 posts tagged “china”

10/9/08

Source: http://trailer-bodybuilders.com/news/china_heavy_truck_sales_up_0910/

In the first half of 2008, China’s heavy truck sales stood at 380,100, up 48.3% over the first half of 2007, according to Research and Markets, which had added the report to its offering.

It is estimated that the sales will continue to grow in the second half of the year, but the growth rate will slow down.

China's heavy truck industry grew rapidly in the period 2000-2004. The sales of heavy truck jumped to 370,795 units in 2004 from 82,184 units in 2000, hitting the highest of industry cycle.

In 2005, China's heavy truck industry had a negative growth due to impact of macro-economic control and skyrocketing oil prices, making the industry fall down to the bottom of industry cycle. The sales in the year reached 236,600 trucks, decreased 36% year on year.

In 2006, the industry had a recovery growth, the sales stood at 307,300 trucks, increased 30% year on year.

In 2007, the industry maintained the growth momentum in 2006; the sales reached 487,500 trucks, up 58.64% year on year. China National Heavy Duty Truck Group ranked the No.1 in terms of sales of 99,800 trucks, followed by FAW Group Corp. with sales of 96,200 trucks. Dongfeng Motor, Shaanxi Automobile Group and Fortan Motor ranked the third, fourth, fifth places respectively.

24/4/08

Source: http://trailer-bodybuilders.com/truck-trailer/stemco_opens_china_plant_0424/

STEMCO announces the grand opening of its China manufacturing facility located in Suzhou, China.

The new facility is the company’s first outside of North America and will be manufacturing wheel end seals to serve the domestic China commercial vehicle market.

“The STEMCO Suzhou plant is an important part of our long-term strategy to better serve customers such as CIMC, Meritor, Hendrickson and FUWA, to name a few”, says Jon Cox, president of STEMCO. “A local presence enables us to both manufacture our seals with the same high quality standards as we do in North America and deliver our products quickly to our customers in China”.

STEMCO, an EnPro Industries company, will share the 45,000-sq.-ft. plant with GGB, an

EnPro company that produces metal-polymer plain bearings. The joint plant will operate under the auspices of EnPro China, a shared services organization.

11/09/07

Source: http://trailer-bodybuilders.com/news/distributors_concerned_buying_china/

In a telephone survey of heavy-duty parts distributors conducted this July by Wade & Partners (www.wade-partners.com), 42% of the distributors indicated that they are concerned about what is being imported from the People’s Republic of China-- as are 64% of their customers. These concerns over Chinese manufacturing quality, however, are not deterring heavy-duty distributors and fleet customers from purchasing made-in-China products, according to the survey.

According to Wade & Partners, while respondents expressed concerns about products from China in the areas of quality of materials used, level of workmanship and the ability of the product to meet U.S. government specs, especially in safety-related lines, having a well-known domestic brand name was apparently reassuring enough to make the sale. “If people recognize the name, then it seems to fall into the ‘safe buy’ category...it will work the way it is supposed to and it will be dependable,” said Bill Wade, managing partner.

“Frankly, I was very surprised by the response we received,” he continued. “I was not expecting distributors to say that familiarity of a brand would so overwhelmingly take precedence over what is actually in the box. Instances like the Mattel toy recall [millions of toys painted with high lead content coating] have just not had a crossover effect here yet.”

Although the survey indicated that most people are still buying parts from China in spite of such concerns, there were two important side notes. First of all, according to the report, some stores have quit selling products they fear may not be up to par-- popular brand or not. And some are taking an in-depth look at the products and the manufacturing processes to make sure that they are up to standards. Other stores have stopped selling China-made products all together, although most appear to be doing so as a point of differentiation in marketing their own services.

Secondly, when it comes to safety items (like wheel bearings, brake friction material or steering components), product lines are treated differently than others in terms of specification, according to Wade. Even at the distributor level, higher levels of qualifications need to be met in order for those products to be put on the market.
The survey also asked the question: “Does ‘Made in America’ still have selling power?” The answer was “Yes”, with 75% of participants saying that a product can still create a market simply by being American-made.

1/06/07

Source: http://trailer-bodybuilders.com/trailer-oem/trucks_china_india_markets/

LOOK OUT for China. And India.

That was the prediction of Don Reynolds, president of 21st Century Forecasting, in his Global Market presentation at TTMA.

Reynolds said the fall of communism was one of the truly significant events in recent history because it added three billion potential capitalists to the world's economy. Viewed another way, that's three billion new customers or consumers in the world's marketplace.

He said emerging markets over the next five years will grow an average of 7%, while developed markets may grow an average of 2.5% over the same period. Emerging markets have 84% of the world's population and 75% of the currency reserves. They utilize 56% of the energy and 50% of the global gross domestic product (GDP), yet represent only 14% of stock-market capitalization.

“The poster child for emerging markets is China,” he said. “The economy has grown more than 10% for the past 10 years. You recognize that this sleeping giant is no longer sleeping. This year, China surpassed Germany as the third-largest economy in the world. In four years, it will catch Japan, and in 10 to 12 years, it will pass the United States as the largest economy in the world.”

He said the country is trying to shrink its population. During the past 25 years, he said, the Chinese government has imposed a policy of limiting households to just one child. Boy babies are valued more, and infanticide is contributing to a ratio of 124 males for every 100 women.

Reynolds said China has what is known as a centrally planned free-market economy.

“While this may seem like an oxymoron,” he said, “the performance of the economy has been staggering: 20% of the world's demand for concrete, a 14% increase in military spending last year — including construction of six new aircraft carriers — and 30,000 cars a week are being added in Beijing.”

His conclusion: “The Chinese are coming.”

But there are obstacles, as well, he said. For example:

• Will the Chinese people, after tasting economic freedom, begin to demand political freedom?

• China is one of the most polluted countries in the world. Sixteen of the 20 most-polluted cities in the world are in China.

• The country has a shortage of mid-level management.

• Because of declining birthrates, China has one of the most rapidly aging populations in the world. In the next 20 years, the average age in China will grow from 32 to 38.

Given a choice between betting on the Chinese tiger or the Indian elephant, Reynolds recommended riding the elephant. He gave several reasons for expecting a surging economy in the world's second-most populous country:

• By contrast to China's aging population, the average age in India will drop from 28 to 26. “Younger populations tend to be more productive,” Reynolds said.

• India is the world's largest democracy.

“It's my contention that the US is in the twilight years of its golden economic age, just as the UK was in its twilight years in 1900,” he said. “And some time in the next 25 years, China will replace us, and then India will replace China.”

He said that in examining growth trends, it appears the US economy will grow this year at approximately 2%. One year before he gave his presentation, the economic growth rate was 5%.

“Profits are continuing to get squeezed,” he said. “There's outsourcing. What's significant is that the average wage in the US has declined by 4%. People are realizing, ‘Gee, if I ask for more, they can take my job.’ ”

In terms of the global energy picture, he said the Chinese “currently are pointing over the next 20 years to have 120 million cars, and the Indians are in the process of developing an automobile that will cost $3000.

“What about gas demand? In annualized energy prices, everything hinges on global price elasticity. Translation: excess supply to demand. In 1980, oil traded on an inflation-adjusted price as high as $91 a barrel. Prices, I would argue, would be a lot more expensive. The average daily use is 85 million barrels a day. That leaves us 2.5 million a day of excess capacity. But China's demand from 2000-2006 went from two million barrels a day to six million, with a projected need of 10 million by the end of the decade. We have other factors: politics. We all know what's happening in Iraq.

“The Saudis dominate the controlled price of oil. At the same time, they're smart enough to know that if the price of oil goes up too far and too fast for too long, alternative energy becomes a popular subject. They're trying to get the price as high as they can for as long as they can, then drop it down real fast for just a little bit.”

He said 7% of consumer spending last year was for what might be referred to as, “We borrowed it.”

The picture has changed. He said the average American family in 1950, in terms of debt to income, was 18%. By 1995, it was 85%. Today, it's 114%.

“Like the trend?” he said. “We have a negative savings rate in this country. And so, we have an intriguing economic event. The stock market collapses in 2000, corporate America shuts down and consumer America continues to spend money by borrowing money to take advantage of tax cuts and lower interest rates, and we begin to develop this insidious thing. The Chinese agreed to make cheap stuff. We agreed to borrow money to buy their cheap stuff. They take our dollars for that cheap stuff and in turn send dollars back, which keeps interest rates lower, which allows us to continue to borrow money so we can continue to buy their cheap stuff.”

He said the Chinese are now accounting for more than 35% of global steel output. The Indian economy has created the world's largest steel country.

“We effectively lost control of steel production in the US,” he said. “I think steel prices have peaked. The Chinese have become exporters. And as they continue to export, the price will drop. Aluminum is pretty much the same story.”

So what he see in his crystal ball for the US economy in the coming years?

“The first thing I focus on is, ‘When is there going to be an economic slowdown?’ ” he said. “On a near-term basis, if we have 2% to 2.5% GDP this year, it needs to pick up a little bit next year. Oil prices are going to continue to head up.

“If your largest, best, biggest customer is in financial trouble, do you extend them a little credit in the hope they continue to function or do you pull that credit completely and the account completely disappears? The Chinese have essentially that problem. We are their biggest customer. We are in financial distress. Do they continue to sell to us?

“The question that frequently comes up is, ‘The stock market is doing terrific. How long is it going to continue to go up?’ The stock market probably has some potentially strong upside in the near term.

“The greatest risk in the US economy is that the greatest statistical probability of a US recession is after the presidential election. The Chinese Olympics and the presidential election are about 10 weeks apart. That's when the greatest concern exists.”

8/11/02

Source: http://portland.bizjournals.com/portland/stories/2002/11/11/story6.html

Anyone expecting to do business in China should be ready for a challenge and be willing to persevere. And the challenges are not necessarily in the details, said one local business owner who founded a manufacturing operation in the Chinese city of Suzhou in 1997.

"Cultural barriers have been much more difficult to overcome, more so than any legal or tariff barriers," said KIC Group co-owner Greg Hatton. Vancouver, Wash.-based KIC, with revenue of approximately $40 million, employs 20 people from its headquarters and 130 people at operations worldwide. The company manufactures axles for heavy duty truck trailers in China, imports axle components for North American distribution and distributes truck and trailer spare parts in Mexico, South America and Southeast Asia. Its products end up on trailers hauling items ranging from consumer goods to timber.

KIC was spun out of the export division of Kimwood Corp., a forest products machinery company based in Cottage Grove, Ore., in 1972. The company is now owned by Hatton, Pat Kuzmer and Miami businessman Rudy Duemichen.

And when costs escalated at its operation in Singapore a decade ago, China's relatively low costs attracted KIC Group. Even though Chinese culture varies drastically from Western ways. Although China's culture is experiencing rapid change, "the concept of a relationship between people is, in almost all cases, more important than price and quality," Hatton said.

And typically, the traditional Chinese style of business communication—whether between organizations or within an organization—is different than Americans expect.

"We tend to be relatively open and blunt. We ask a question and we expect to be answered directly. It doesn't matter whether you're asking about a company policy or pricing structure or the status of customs. In traditional Chinese culture, they don't answer questions directly. And that has been the most frustrating thing for me as a manager," Hatton said. Hatton is preparing for a December communication-promotion trip to KIC's China facility.

To help bridge the cultural gap when it began China operations, KIC hired a Singaporean. "But things are really changing so quickly in China that he even has a hard time."

KIC has a long history of working abroad. Before the company opened KIC Suzhou Automotive Products LTD, KIC served its Asian customers from a facility in Singapore. But by the early 1990s, rapid cost increases forced KIC to look for a way to do business less expensively.

At the time, Portland's ties to China were highlighted with early efforts on a major civic project—the Portland Classical Chinese Garden. A sister city relationship with Suzhou partly facilitated that project.

And those ties, Hatton said, helped KIC with its relocation plans. "We met people representing Suzhou when they came here while Portland was just talking about doing a Chinese garden." Those connections helped lead KIC to an existing 15,000-square-foot building in the city. After company officials considered whether to partner with a China-based firm for a joint-venture, and completed nearly 100 trips to the continent throughout several years, KIC was poised to open its operation.

"Many companies are presented with the opportunity for a joint venture with a Chinese company. But based on our evaluation and on all of the experience we had at the time, we decided to go all on our own. Perhaps our learning curve has been longer but we do feel we have more control over our destiny. A lot of companies have entered into a joint venture, only to leave disillusioned and substantially poorer.

"But because of the cultural barriers, it's very difficult to have a partner in China. You've got to be committed to being in China for the long-term."

KIC invested almost three times China's requirement for a minimum investment of $350,000 when it started up its wholly owned foreign subsidiary. The company's China-based assets have grown to $3.5 million and the 40-person manufacturing operation has experienced 30 percent growth annually. It became profitable in its third year.

With burgeoning demand for transportation systems, the country represents a market too important to ignore, Hatton said. When the transportation industry in the United States boomed during in the late 1990s, roughly 200,000 trucks and 300,000 trailers were sold annually. During the same years in China, probably 20,000 trucks and 30,000 trailers were sold, Hatton said. But with four times the U.S. population, China likely will continue to demand an ever-growing supply of vehicle components.

19/03/07

Editor: Please bear in mind that they are not referring to trailer axles, but commercial axles. Just thought I post it up for interest.

Dana Corporation announced today that its subsidiary, Dana Mauritius Ltd., and Dongfeng Motor Co. Ltd. have amended the agreement to develop their 50/50 joint venture, Dongfeng Dana Axle Co. Ltd. Certain terms of the original agreement with Dongfeng signed on March 10, 2005, were renegotiated after Dana filed for reorganization under Chapter 11 of the United States Bankruptcy Code in March 2006.

Under the amendments and other agreements signed by both companies - and subject to certain government approvals, Dana Mauritius will make an initial payment of 38.8 million RMB (approximately USD 5 million) to Dongfeng for a 4-percent equity interest in the joint venture. Closing of this part of the transaction is expected to be completed by the end of March 2007. Dana Mauritius will purchase the remaining 46-percent equity interest after April 1, 2008, and within three years of receiving the aforementioned government approvals.

Dana Mauritius will invest in an existing Dongfeng subsidiary, which is China's largest commercial vehicle axle manufacturer, to form Dongfeng Dana Axle. Headquartered in Xiangfan, China, the joint-venture company will employ approximately 8,000 employees in three production facilities in Xiangfan and Shiyan, as well as a research and development center that will be established. The technical center will support Dongfeng Dana Axle's commitment to providing its customers with world-class manufacturing processes and axle components and systems.

"We are very pleased to reach this milestone with Dongfeng," said Nick Stanage, president of Dana's Heavy Vehicle Products group. "Dongfeng Dana Axle will be the largest commercial vehicle axle supplier in Asia. For Dana's Commercial Vehicle Systems business, this joint venture also provides a great opportunity to balance and complement our extensive operations in North America."

Another term of the joint venture agreement between Dana and Dongfeng is Dana licensing certain commercial vehicle axle technology to Dongfeng Dana Axle for the term of the joint venture.

Dana has seven other joint ventures in the Asia-Pacific region, including two in China. With more than 4,300 employees in 18 facilities in the region, Dana produces axles, propshafts, structures, and sealing and thermal- management products for a host of light- and heavy-vehicle manufacturers.

About Dongfeng Motor Co. Ltd.

Dongfeng Motor Co. Ltd. is a joint venture between the state-owned Dongfeng Motor Group Company Ltd. and a Chinese subsidiary of Nissan Motors. Dongfeng Motor Group was founded in 1969 and with its affiliates ranks as one of the three largest vehicle makers in China. Dongfeng Motor Co. Limited produces a broad range of light-, medium-, and heavy-duty trucks, as well as buses and passenger cars.

12/02/07

Source: http://www.manufacturingtalk.com/news/ett/ett104.html

ETA Technology, Bangalore, India, has won another order for a 1250kN (125tonf) Friction welding machine for welding of rear axle housings of commercial vehicles. Arvin Meritor, one of the largest manufacturers of axle housings is the customer.The machine is to be supplied to their new plant in Peoples` Republic of China (Arvin Meritor Vehicle Systems (Wuxi) Co) near Shanghai. This will be a single head machine and is designed to weld trailer axles and there is provision for upgrading to weld live axles.

Mismatch between spindle axes after friction welding both ends will be within 0.125mm.

Tolerance on length (shoulder to shoulder)within +/-1.0mm with cpk value of 1.67.

There is provision for angular orientation of the spindle within +/-1 deg.The machine can weld axles of diameter up to 150mm with wall thickness of 19mm max.

The machine spindle is driven by an AC spindle motor and braked by line-regenerative braking.

The axial load during welding is applied by a hydraulic cylinder and is controlled by a servovalve through an Industrial PC.Total connected load of the machine is only 175HP.

All important welding parameters like spindle speed, spindle torque, axial thrust and displacement are plotted on-line against time and archived.Weld history of any previous weld can be easily retrieved.

07/08/06

ArvinMeritor Announces Intention to Establish New Trailer Axle and Suspension Manufacturing Facility in China

SHANGHAI, China (Aug. 7, 2006) – ArvinMeritor, Inc. (NYSE: ARM) today announced it will open a new wholly-owned operation in Wuxi, Jiangsu Province, China. The 300,000 sq. ft. facility will initially manufacture trailer axles and suspensions for key trailer manufacturers in China, as well as for export of components to North American and European plants. The company’s board of directors approved the investment in the new facility.

Production is estimated to begin in the first half of 2007.

Other drivetrain and brake components will be added to the operation’s portfolio, as the company continues to pursue its strategic enterprise model.

“As the country’s infrastructure improves, tractor-trailer configurations are expected to rise exponentially, and we will be ready to support both current and future market needs with advanced technology,” said Sergio Carvalho, vice president and general manager of ArvinMeritor’s Trailer Products and Suspensions business.

Investment in the Wuxi operation will include $35 million for new equipment.

The company has identified local sourcing for its components, which furthers its integrated manufacturing strategy to bring all aspects of the supply chain within close proximity of the facility.

23/03/04

Source: http://trailer-bodybuilders.com/news/ArvinMeritor-overseas-ventures/

ArvinMeritor, Inc.'s Commercial Vehicle Systems (CVS) business group today announced that it will provide trailer axle and suspension systems to the Spanish-based TotalTrailers-Fruehauf Group and trailer systems in a strategic alliance agreement with Shenzhen CIMC Heavy Industries Co., Ltd. (SCHI) in Shenzhen, China.

The Freuhauf contract is valued at $6 million annually and will cover a full range of products, including the ELSA 2 Disc brake. The supply contract covers the complete line of trailer platforms offered by TotalTrailers-Fruehauf. Production began in January 2004.

"TotalTrailers-Fruehauf Group is a quality organization and we are thrilled to earn this important new business," said Sergio Carvalho, vice president and general manager of Worldwide Suspension Systems, Trailer Systems and Ride Control. "Our partnership with the Spanish TotalTrailers-Fruehauf group will help increase our growing presence throughout Europe and other global markets they serve."

The China contract includes the delivery of 20,000 trailer axles per year. The agreement begins a five-year long-term global supply partnership between the two companies that will include the purchase and supply of axle systems for a period of five years from the signing date.

"This significant new business for our company is further evidence of ArvinMeritor's growing expansion into global markets," Carvalho said. "Receiving this award demonstrates that we are well-positioned to become a serious Tier 1 supplier in the Asian commercial vehicle transportation industry."

SCHI is the fully owned subsidiary of China International Marine Containers (Group) Ltd. (CIMC). CIMC is one of the first container manufacturers and Sino-foreign joint ventures in China.

11/06/04

Source: http://www.chinadaily.com.cn/english/doc/2004-06/11/content_338696.htm

The Holland Group, a global supplier of innovative vehicle coupling, lift and suspension system products to the heavy duty transportation industry, announced this week that it has signed a license agreement with Zhenjiang Baohua Semi-Trailer Co Ltd to manufacture Holland landing gear products under license for China and other Pacific Rim markets.

The licensee agreement allows The Holland Group to move forward with a local manufacturing firm that has a strong, established presence in the fast-growing truck and trailer industry in China. Industry statistics indicate the market in China for heavy trucks and trailers had increased quickly over recent years, and projections for high levels of continued economic growth and investment would drive further demand for transportation.

"This partnership will allow Holland to bring its world-class design and innovative product features to a market that is not only growing rapidly, but also looking for the type of advancement in product technology that Holland has already brought to other markets around the world," said Jeffrey Talaga, Managing Director -- Holland China.

"While the initial phase of the partnership will be limited to the manufacture and distribution of landing gear products, we expect that in the near future we will expand our efforts to include other Holland products."

Holland's partner company, Zhenjiang Baohua Semi-Trailer Co Ltd, was established in 1995 and currently produces a line of fifth wheels, landing gear, trailer axles, suspensions and other related components.

Their office, manufacturing, and distribution facilities are located in zhenjiang, Jiangsu Province near Nanjing, and are geographically situated to serve the truck and trailer OEM's in China. Mr Talaga will oversee all aspects of the partnership from the Holland International Beijing Representative Office coupled with a technology liaison provided by Holland's design and engineering centers located in the United States.