As a newly listed company in the industry, Pulin Chengshan (Shandong) Tire Co., Ltd. achieved a good profit growth of 167.5% in 2018, and various economic indicators also rose across the board. Recently, the company has made major adjustments in its business strategy. And disclosed relevant details to "China Rubber".
Pulin Chengshan said that due to the deterioration of the trade export situation, after discussion by the board of directors, it was decided to immediately suspend the second phase of the expansion project of the all-steel radial tire of Rongcheng Base and put all of its reserve funds into the base of Thailand.
It is understood that Pulin Chengshan issued 135 million shares to the world when the Hong Kong stocks were listed. The net proceeds from the sale were about 649 million yuan. According to the plan, 35.8% (233 million yuan) of them will be used for the above projects.
Pulin Chengshan also decided to invest all of the 195 million yuan originally used for overseas investment in the Thai project. On this basis, the total raised funds for the construction of the Thai plant reached 428 million yuan.
Pulin Chengshan will benefit from overseas layout
The company said to China Rubber that the United States and the European Union have successively increased anti-dumping duties on all steel products imported from China. The cost of this increase has made enterprises unable to bear, and the European and American markets have closed their doors to China.
At the same time, more than a dozen countries including India and Brazil have also initiated various forms of trade protection policies, which have caused great challenges to the export of mainland factories.
The construction and commissioning of the Pulin Chengshan Thailand plant will help it avoid the trade friction risks of various countries and enable it to continue to operate normally in markets such as Europe and the United States, ensuring the market share of the company.
"China Rubber" learned that the company's Thai factory is under construction in an orderly manner, and a groundbreaking ceremony was held on March 31. It is expected to be put into production in June 2020. The first phase of the project will form 4 million PCRs. Production capacity of tires and 800,000 TBR tires.
For Pulin Chengshan, in addition to the restrictions on trade barriers, the Thai factory will also receive lower raw material prices than domestic ones, and the transportation cost of delivering products to customers will be lower. The comprehensive competitiveness of Pulin Chengshan will be Therefore, it has been greatly enhanced.