Heavy-duty auto market suppliers look for new exports

In 2010, as part of the Beiben heavy truck suppliers are still shouting: backstreet cool. Since May 2011, with the sluggishness of the heavy-duty truck market, parts and components supporting companies of Beiben heavy trucks have also undergone a test of “winter”, and they are struggling to save themselves and seek new exports.

Baotou Dacheng Electromechanical Equipment Co., Ltd. and Baotou Huaxin Machinery Co., Ltd. have been supporting parts and components for Baotou Beiben Heavy Vehicle Co., Ltd. for many years. Since May last year, North Penn's orders have declined, directly affecting the production and operation of Dacheng and Huaxin.

“Our 98% of our production value comes from Beiben. We have been greatly affected by the sluggish market, and the company’s profits have been significantly reduced. Under the current economic situation, we cannot wait for the market to recover, we must actively discuss business with other manufacturers and strive to get out. Now, we are actively negotiating with Shaanxi Auto to expand the scope of cooperation.In addition, we carry out energy-saving activities within the entire company, and call on employees to save every single watt of electricity, every drop of water, start from scratch, and reduce energy consumption. Reduce waste and increase efficiency.” Liu Zhe, the general manager of Dacheng’s electrical and mechanical company who just returned from the company’s business negotiations in Shanghai, was slightly tired.

Over the past few years, many new parts and components companies have invested in new equipment for Beiben heavy trucks and have too little room to turn around. The president of Huaxin Machinery Co., Ltd. Guo Yufu has always been the development of thinking is to walk the two ways, reduce the constraints, in 2009 and 2010 Huaxin Machinery has invested in the establishment of automotive panel production line, you can do for the heavy truck, but also for the car. In 2011, the train capacity was tight and production demand was large. Huaxin Machinery increased its cooperation with Beichuang in accordance with the market. Today, Beichuang has become the second largest customer of Huaxin Machinery. At the same time, Chery built a factory in Ordos (600295, shares bar) and also welcomed new opportunities for Huaxin's car parts and components. Because of the investment in new products, the output value of Huaxin Machinery in 2011 was basically the same as in 2010, reaching more than 100 million yuan.

Whether the heavy truck market can recover, all parts suppliers are still waiting. “Currently looking for new exports to maintain production and retain workers. Once the economy recovers, we can continue to strengthen production.” Guo Yufu said.