Adding Value: Chinese firms rise up the global supply chain
Updated 13:30, 23-Sep-2018
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As Chinese companies continue forging partnerships with global leaders to try to innovate and improve quality. That includes suppliers to BMW's Chinese joint-venture: BMW-Brilliance. Its plants in northeastern China are now the German carmaker's largest, a signal, some say, of support for China's manufacturing. Xu Xinchen visited one of BMW's suppliers and has more.
Robotic arms standard for global manufacturers, well-trained workers, and a zero-defect policy. Auto exterior part maker Shenyang Minghua is responsible for making bumpers for the entire fleet of BMW-Brilliance's 3 and 5-Series. An accelerated business for Minghua.
CAO KEBO, OWNER SHENYANG MINGHUA MOULD & PLASTIC TECHNOLOGY CO. "Through the more than 10-year-partnership between Minghua and BMW-Brilliance, sales grew 25 fold, reaching over 600 million yuan last year."
That's about 100 million US dollars, and the partnership has also grown closer. Shenyang Minghua is one of BMW's 350-plus suppliers in China. Not only is Minghua making the bumpers, but they're also helping with the design. When the carmaker localized in China, cars were only assembled with imported parts in its Shenyang plants, but now over 70% of the parts are made in China. And the bigger plan is to export cars made in China elsewhere.
XU XINCHEN CGTN REPORTER "Are your Chinese suppliers capable of helping BMW to create vehicles that can sell in other markets?"
JOHANN WIELAND PRESIDENT & CEO, BMW-BRILLIANCE AUTOMOTIVE "Well, if you look at our quality. The quality coming out of our factories in Shenyang is as good as every factory in the world. And we do see that we are able to award more and more businesses to Chinese suppliers."
Dr. Wieland adds that the next step for Chinese suppliers is to compete with other companies globally. In fact, some, including Minghua, have already started. The Chinese bumper maker has expanded to the US and Mexico, producing parts for BMW's global factories. Xu Xinchen, CGTN, Shenyang.