Chinese publicly-listed manufacturer, Mesnac Co., Ltd, announced plans this month to invest in a new manufacturing facility in Cambodia focussed on the production of tyre mould products.
The company’s board of directors have approved a Cambodian investment plan with a sum value of 27.97 million yuan, or approximately $3.9 million, with an estimated construction period of 14 months.
Concurrently, the firm has announced approval by the board of directors for a second new overseas expansion this month into neighbouring Vietnam.
The investment in the Vietnamese factory will total 107 million yuan, or approximately $14.7 million, with an estimated construction period of approximately 18 months.
Mesnac Co., Ltd. announced that its wholly-owned subsidiary, Qingdao Soft Control Mechanical and Electrical Engineering Co., Ltd., will raise its own funds to invest and build the factory in Cambodia, operating as Mesnac United Technology (Cambodia) Co., Ltd.
The same subsidiary will fund and build the new Vietnamese operations concurrently.
The precise location of the new Cambodian facility however is yet to be announced.
The purpose of the two overseas investments in 2024 is to better meet the needs of overseas markets, cited a media release from the firm, as well as further enhance the corporation’s ability to respond to international trade barriers.
The expansion also enhances the competitiveness of the firm and supports its increasing international market share.
Mesnac manufactures a broad range of products in China, mainly engaged in the development of industrial intelligence and providing integrated informationalized software and equipment for rubber companies.
Its primary industry is network management and operating systems software.
The company’s international product portfolio consists of mixing systems, curing and moulding systems, PCR moulds, TBR moulds, OTR moulds, tyre-building products, material conveying and dosing systems, among others.
It also operates in the field of automation logistics, Internet of Things (IoT), chemical industrial equipment, and new rubber material.
However, the two projects slated for Cambodia and Vietnam under Qingdao Soft Control Mechanical and Electrical Engineering Co., Ltd., will focus on increasing the production and sales of the company’s mould products, improving the sales revenue of mould products, and increasing the annual net profit of the firm by around 13 million yuan, close to $1.8 million.
First established in 2000, Mesnac is an international high-tech enterprise group developed by the Qingdao University of Science and Technology.
In 2006, the company went public, listed on the Shenzhen Stock Exchange (SHE) under the ticker 002073.
The company is headquartered in Qingdao, China, with 4,063 employees as of 2023.
The current market capitalization of the Mesnac company is $1.06 billion, and the trailing twelve-month revenue for the Mesnac company is $828 million.
Thanks to its partnership with the Qingdao University of Science and Technology,
Mesnac has also become a leader in technological development for industry.
The company has built a number of national technology research and development (R&D) platforms in China and internationally, including the National Rubber and Tire Engineering Technology Research Center, the National Engineering Research Center for Advanced Tire Equipment and Key Materials, and the International Joint Research Center for Digital Rubber Tire Equipment, among others.
The recent announcements of the firm’s plans to expand operations in Cambodia came following the Deputy Prime Minister and First Vice-Chairman of the CDC Sun Chanthol’s recent tour to Qingdao City in China’s eastern Shandong province in January of this year.
The purpose of the Deputy Prime Minister’s trip was to interact with businessmen in Qingdao City and assist potential investors in exploring opportunities in the Kingdom.
The tour saw the participation of many industry leaders from Qingdao City, who expressed their interest in exploring investment opportunities in the Kingdom.
Importantly, the Deputy Prime Minister also visited the Mesnac factory during his visit to the city, along with key management, potentially fueling the firm’s confidence in the newly announced investment plans in the Kingdom.
Qingdao is a major city located on the Yellow Sea coast in the eastern province of Shandong.
A city of great economic importance to China, Qingdao enjoys a strategic location for international trade and is a key Belt and Road city on the ‘maritime silk road’. Also, it is home to a large number of industrial units including chemicals manufacturing, heavy engineering, high-tech firms and rubber processing firms.