H Beam,Section Steel,Shaped Steel Tianjin YF Steel Co., Ltd , https://www.youfametal.com
Global auto parts industry major migration target: China
"Fact has shown that several years ago, we moved part of our business to China, and it was the right decision. The tires produced in China are highly competitive in the U.S. market. Even when factoring in transportation costs, their retail prices are still lower than those made in Ohio. The factory price is even more competitive," said Scott Tucker, Vice President of Danman Tire Manufacturing Co. in Ohio.
As the prices of key raw materials like steel and oil have surged, more multinational companies, including Danman, are focusing on the Chinese market. According to a recent study by BearingPoint Management Consulting, with major auto parts suppliers such as Delphi, Visteon, Tianhe, and Lear increasing investments in China, the scale of China’s auto parts industry is expected to grow by 165% by 2010, reaching approximately 800 billion yuan. This makes China the largest investor in the global auto parts sector.
Multinational giants have been expanding their presence in China by establishing joint ventures or wholly-owned subsidiaries. They now hold significant shares in the parts market, especially in high-tech and premium segments, benefiting from China's rapid automotive growth.
Delphi, which filed for bankruptcy protection in the U.S., is thriving in China. With 14 manufacturing plants and over $450 million in total investment, the company produces over 40 product categories. Since 1994, Delphi has grown at an average annual rate of 24%, and last year, its consolidated revenue in China exceeded $600 million. The Chinese market remains a critical growth driver for the company.
Visteon, another major North American supplier, has a joint venture in Shanghai—Yanfeng Visteon Automotive Trim Systems—with a total investment of $223 million. It also operates production facilities in Shanghai and controls other subsidiaries. Its Asia-Pacific headquarters is located in Shanghai, and it recently established a joint venture with SAIC and Dongfeng Group.
Bosch, one of the earliest global component giants to enter China, has set up 10 representative offices, four trading companies, seven wholly-owned enterprises, and ten joint ventures. Its products span various sectors, including electrical systems, ABS, and transmission. Bosch also partnered with Weifu Hi-Tech to develop a diesel injection system project, investing 600 million euros.
With Japanese automakers entering the Chinese market, their suppliers followed suit. After Toyota established a joint venture in Tianjin, Denso and Aisin Seiko set up factories there. Similarly, after Honda’s entry into Guangzhou, many Japanese parts companies expanded to Guangdong. Following the Nissan-Dongfeng joint venture, Japanese suppliers also entered Hubei.
China has become a preferred destination for low-cost production. Global procurement trends have led many parts companies to separate from vehicle manufacturers and pursue independent, large-scale development. However, rising material costs have created challenges, making it hard for suppliers to pass on expenses to automakers. Many North American companies faced losses or bankruptcy during this period.
In response, the automobile industry chain has become more globalized. More companies are shifting labor-intensive production to low-cost regions. China’s growing auto market and cost advantages make it an attractive option. As a result, many parts suppliers are either setting up production bases in China, targeting it for global procurement, or even relocating their Asia-Pacific headquarters there.
This trend is accelerating the integration of Chinese companies into the global economy. Currently, nearly 500 foreign-invested parts companies operate in China, with almost all leading global suppliers having a presence through joint ventures or wholly-owned operations. While many still focus on domestic demand, as their production scales up and R&D capabilities improve, they are increasingly exporting products globally.
At the same time, multinational corporations are shifting their procurement strategies toward China. Companies like GM, Ford, and Volkswagen have established procurement centers in the country. So far, the value of parts purchased from China by multinationals has surpassed $5.5 billion, with most supplied to local joint ventures. Last year, GM, Ford, and Chrysler announced plans to purchase over $10 billion worth of components from China.
These moves not only help reduce costs for multinationals but also push Chinese companies toward globalization faster. Many domestic firms have gained opportunities to export or support foreign companies through global procurement.
H-shaped steel is an economical cross-section high-efficiency section with more optimized cross-sectional area distribution and a more reasonable strength-to-weight ratio. It is named because its cross-section is the same as the English letter "H". Since all parts of the H-shaped steel are arranged at right angles, the H-shaped steel has the advantages of strong bending resistance in all directions, simple construction, cost saving and light structural weight, and has been widely used.
H-shaped steel is a widely used profile in steel structure buildings today, and it has many differences compared with I-shaped steel. The first is the flange, and second, the inner surface of the flange has no inclination, and the upper and lower surfaces are parallel. The cross-sectional properties of H-beams are significantly better than traditional I-beams, channel steels and angle steels.
The two outer and inner sides of the H-shaped steel have no slope and are straight. This makes the welding and splicing of H-beams easier than I-beams, and has better mechanical properties per unit weight, which can save a lot of materials and construction time. The section of the I-Beam is well subjected to vertical pressure and resistant to tension, but the section size cannot resist torsion because the wing plate is too narrow. H steel is the opposite, both have their own advantages and disadvantages.