Guizhou Tyre Co recently signed an agreement with Vietnam's Qianjiang province for a total investment of $400 million to build a factory in Longjiang Industrial Park in Qianjiang.
The project will be carried out in three phases. The first phase of plant construction will be completed in 2018 and put into operation in 2019. The first phase will produce 1.2 million all-steel radial trucks, with an annual sales income of $116 million.
In the second and third phases, the industries of engineering car tires, heavy truck tires, large agricultural tires and truck tires will be expanded and the industrial chain will be extended to build a base for the production, processing, storage and trade of natural rubber.
Ma Lei, Deputy Director of Guizhou Provincial Department of Commerce, said that the project fundamentally solves the problems of Guizhou Tyre Co. being away from the raw material supply market and the product export market.
In recent years, Guizhou has made full use of both domestic and international markets and resources to promote a substantial increase in the total amount of "go global".
As of June this year, the province has 142 enterprises with a "go global" strategy. The "go global" initiative is when companies or governments try to expand their overseas market by investing, building or joining in overseas companies, factories or projects.
From January to July this year, the province's total foreign economic and technological cooperations have a total amount of $640 million and are expected to reach $1.1 billion in 2017.
Guizhou's "go global" enterprises in the overseas-contract engineering industry have gradually expanded from a single housing construction and transport infrastructure to water conservancy, petrochemical, electric power, industrial construction and other fields. And the overseas investment business has gradually expanded from the wholesale and retail trade, manufacturing Industry, mining and business services to finance, catering, agriculture, research and other fields.
Ji Hong, Director of the Guizhou Provincial Department of Commerce, said that Guizhou province will improve the level of facilitation of overseas investment in industries, encouraged by the state or allowed in the "go global" strategy, to build a convenient platform for foreign trade and economic cooperation and promote further international partnerships in production capacity.