"Others are first building a factory, building a sales force, and then playing a brand. I first built a sales force, branded my own, and finally built a factory." Shanxi's first privately-owned automobile tire manufacturer - Shanxi Desheng Tire Co., Ltd. In an interview with the reporter, Ren Xiaogen, chairman of the board of directors, said that before the financial crisis, an annual output of 300,000 steel-loaded radial tires would require at least 320 million yuan investment, but now it is enough as long as 150 million yuan.
Ren Xiao more said: "Now the cost of raw materials is low, government policies are more favorable, and doing things to do more with less, for the private capital companies that do not have a strong capital chain, this financial crisis is both a crisis and an opportunity."
Recently, Shanxi Desheng Tire Co., Ltd. has an annual output of 300,000 full-steel load radial tires projects officially launched in Luan County, Shanxi Province. Jing Tao, deputy county governor of Jing County, told the reporter at the site of the project's launch that the demand for mineral resources such as coal, copper, and iron in the international market has grown rapidly in recent years, and the demand for extractive machinery and large-scale transport vehicles in the extractive industry is increasing. The large demand for large tires, especially the market for mining dump trucks, has caused the shortage of global large-size engineering tires. The most serious tire shortage is the large tires (49 inches and above) used in mining vehicles and their equipment. It is estimated that the current tire supply gap in the mining industry is about 25% to 30%. The start of the project will become the only large-scale private automobile tire manufacturer in Shanxi Province, filling the gap in the production, processing and sales of radial tires in western China.
Ren Xiao told reporters that the project had started preparations as early as June 2006. However, due to the lack of a systematic sales team and its own brand at the time, it was necessary to sign a cooperation agreement with Qingdao Saihong Tire Co., Ltd. to produce "Desheng" brand steel wire radial tires. At the same time, Shanxi Desheng began laying a tire sales network throughout the country.
“I was still doing the channel when the market was the hottest in 2007. When the global financial crisis broke out in October 2008, I waited until I had an opportunity to build my own factory. At this time, the costs of building factories, raw materials, and talents were all low. More policies."
While the cost of building factories has fallen, the cost of raw materials continues to fall. Taking carbon black, which accounts for 35% to 40% of raw materials, as an example, it would cost about 6,500 yuan per ton, and now it is only 4,000-5,500 yuan. Moreover, Qixian County's carbon black production accounts for one-sixth of the national market share, and it is the country's largest carbon black production base, providing sufficient raw material supply for tire production.
Due to the impact of the financial crisis, many export-oriented enterprises have ceased production or have closed down, resulting in an increase in the number of unemployed people. The Ganxian government has introduced a policy for this purpose. As long as the company can solve the unemployed reemployment, the training costs of the professionals required by the company will be subsidized by the government. It is understood that the professional senior high school training costs in Jingxian County are approximately 2,500 yuan/person.
In the context of the above-mentioned cost reductions, the central and local governments have also given more preferential policies. For example, the country provides discount loans; the local government implements a “three-plus-five†preferential taxation policy, in which 30% of the corporate income tax is given to the state, 70% to the county-level finance, and the Qixian government retains 70% of it. 35% of them are exempted for three years.
At the same time, the county government also provided land preferential policies. Shanxi Desheng covers an area of ​​449 mu. Before the financial crisis, the land cost was at least 15 million yuan. Now it only pays 11 million yuan. The rest of the funds are paid by the county finance, and a few years later, Shanxi Desheng added it back to the county finance. "This gives us a breath of breath on the capital requirements." Ren Xiao more said.
It is understood that the Shanxi Desheng All-steel Radial Tire Project will be implemented in three phases. The first-phase project will have an annual output of 300,000 sets. The total investment is 320 million yuan. There are more than 800 employees, and the annual sales revenue will be 450 million yuan. .
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