The hottest Fuyao Glass deepens the BRICs partners

2022-10-14
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Fuyao Glass: "deepen the BRICs partnership and open up a brighter future"

"with the gradual strengthening of the BRICs cooperation mechanism, the future economic and trade cooperation with BRICs countries has great potential." On the morning of September 3, caodewang, chairman of Fuyao Glass Industry Group Co., Ltd., was full of expectations for the cooperation of BRICs countries in an exclusive interview

in the afternoon of the same day, the 2017 BRICs business forum was officially opened, attracting a total of 1200 business representatives. During the two-day forum, the participants had in-depth exchanges on four topics, including "trade and investment", "financial cooperation and development", "connectivity" and "blue economy", focusing on the theme of "deepening the BRICs partnership and opening up a brighter future"

as a Chinese enterprise that started overseas layout earlier, Fuyao Group now has 13 overseas companies, covering the United States, Germany, Russia, Japan, South Korea and Hong Kong, China. According to the 2017 semi annual report of Fuyao Group, from January to June this year, the company achieved an operating revenue of 8.714 billion yuan, an increase of 14.89% over the same period last year. If the exchange loss factor is deducted, the total profit increased by 17.91% year-on-year

in July, 2011, Fuyao Group invested US $200million to establish an overseas leading production base in Kaluga, Russia. In September, 2013, the Russian project was officially completed and put into operation. Over the past four years, Fuyao Group has overcome difficulties in language, culture, tariffs, management and so on, gradually turning losses into profits. In caodewang's view, enterprises should first actively "go out", but at the same time, they should "go back by air, not by air, even if they can't afford to buy air tickets"

Q: Why did you choose to invest in Russia

Cao Dewang: in fact, as early as when I visited Russia in 1997, I saw its potential, and it has great advantages in land, resources, talent training and so on. But at that time, Russia was just beginning to transform, and many people's ideas were still stuck in the planned economy model, which was not suitable for investment, so we set up an office in Russia to understand and investigate the local market

2010, Kaluga electro-hydraulic servo valve has the advantages of fast dynamic response, high control accuracy, long service life and so on. The governor of the state personally led a team to China to attract investment. At that time, Russia has accepted the market economic system, and both material supply and people's living standards have been greatly improved. At this time, our office in Russia also sent a research report. I feel that the opportunity to invest in Russia is coming

Q: what difficulties did you encounter at the beginning of Russian investment

caodewang: the first thing we face is language. At that time, there were not many talents who knew Russian in China, and there were some obstacles in communicating with the local people

followed by cultural differences. Russia is a country in transition. Many Russians over the age of 45 have not completely changed their thinking, but they are very serious and want to do well

then there are laws and regulations. Russia is very serious about tariffs. For example, if I want to import a piece of glass, they will also ask us to provide document No. 5 as required, but that is applicable to the import of a batch of glass, which will be very troublesome for us

under these differences, there are also many difficulties in management. Therefore, we basically recruit local talents to realize localized management

but the biggest difficulty lies in the instability of the local economy, which fluctuates greatly. In 2014, as soon as the factory was built, it was hit by the rouble crash. Fuyao Group lost $20million to $30million a year and slowly recovered until last year

Q: will the strengthening of BRICs cooperation have an impact on investment in Russia over the years

caodewang: of course, it can be said that the investment environment in Russia is improving every year. Over the years, Russia has been making continuous efforts in the management system and market system, which we can all feel. But I think that as an investment enterprise, it can't ask the other party's government how to change, but can only adapt to the environment and manage itself well

with the strengthening of BRICs cooperation, Russia will make greater progress in the automotive industry in the future. Therefore, Fuyao Group will also increase its investment in Russia, and plans to increase $100 million investment widely used in aerospace, petrochemical, machinery manufacturing, plastic rubber, ceramic building materials, metal materials, construction engineering and other industries to achieve greater development

Q: over the years, Fuyao Group has actively deployed overseas. Compared with developed countries such as Europe and the United States, what is the difference between the investment environment of BRICs countries

Cao Dewang: first of all, there is no language problem in investing in developed countries in Europe and the United States, because they are all large language families. Secondly, the operating profit (EBITDA) in Europe and the United States reaches 2billion euros. Developed countries have a mature market economy and are very standardized. As long as enterprises hire good lawyers and accountants, they can do a good job in every document

however, developed countries in Europe and the United States have been very mature in talent, technology and capital, and their enterprise level and brand awareness are also very high. They do not have a comparative advantage in their investment, which is precisely an opportunity for BRICs countries

the BRICs countries are partners. They only cooperate with each other, have no constraints, and are relatively equal. Therefore, countries should give full play to their respective comparative advantages to achieve complementarity. Our enterprises used to invest to make up for the shortcomings of others, not to cut off their employment

Q: do you have any suggestions for Chinese enterprises to "go global"

caodewang: enterprises should first actively "go out", but before "going out", they should ask more questions about what to do and what to take? We should study their shortcomings and make up for them. Just turn the buffer to the right position. European and American investment should have an international vision. We go out to make money, not blindly "go out". As a result, we can't sell it, so we can only fight a price war and engage in dumping. I invest money every minute, so I am very cautious about every investment. In the United States, I started trial investment in 1995, but did not start large-scale investment until 2014. It took me 19 years to invest, while in Russia, I studied for 17 years

secondly, enterprises should not only "go out", but also "come back", but also fly back and forth. They can't walk back and forth by plane. At a loss, they can't even afford air tickets. There was a time when someone rumored that I wanted to run. Why did I run? This is my hometown. I don't need to run, and the whole Fuyao Group is controlled by me. Fuyao Group controls the stock investment of all investment countries. My whole life has been devoted to Fuyao Group. If there is no stock reduction, I won't run

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