Globasource
Aluminum maker CNBM will boost exports to mature and emerging markets
Edited by : AL CIRCLE
4 min read
The company will expand shipments to traditional destinations and explore new regions.
Under efforts to increase exports, CNBM International Corp. is strengthening presence in Europe and North America. This is complemented by plans to roll out products with higher technology levels in the coming months.
In an interview with Global Sources, aluminum product department manager Hu Zhifan discusses the company’s objectives amid the gloomy forecast ahead. Below are excerpts of the discussion.
What new products will be launched next year?
We will improve our present selection to introduce products with higher technology levels, profits, and fewer competitors. Besides aluminum products, are there plans to release other items? Yes, of course. These include silk screen, tires, and aluminum doors and windows.
Which geographic markets will your company target?
Our company will eye markets across the globe, including Europe, North America, the Middle East, Africa, South America and Southeast Asia. Europe and North America are mature markets, but competition is stiffer. We think our exports to these destinations can still be widened, which will be important research areas. We will also speed up R&D in other new markets to maintain our exports.
How is your company coping with the yuan revaluation?
The yuan revaluation drove some of our clients to other sourcing countries such as India, Vietnam and Thailand. We also lost profits due to long-term credit orders. To cope, we plan on enhancing our add-on service level as well as innovate our cooperation system to boost competitiveness and preserve our loyal customers. We will also shorten delivery terms and use various financial products to sell foreign currency early and lessen risks from the volatile exchange rate.
How does your company attract domestic and overseas buyers amid furious competition? What about your after-sales service?
We offer attractive quotes, good quality, on-time delivery and excellent service. We will also provide quality warranties to buyers as well as monitor and resolve problems from purchase to consumption. In addition, we will improve our products and manufacturing process through the feedback we gather from clients.
How has your company fared this year? What is your outlook for 2012?
The first half of the year was upbeat for the company with various policies boosting export conditions. The latter part of the year, however, has been difficult because of the gloomy global economy. Varying raw material costs and currency rate, for instance, has made business more difficult.
With harder challenges ahead, we think the condition will worsen next year. It is also possible for the government to reduce export tax rebate on aluminum products. The US may also charge anti-dumping duties on China’s aluminum products. These will add even greater pressure on aluminum product suppliers, including our company. There are also other obstacles projected next year that will affect our export business. One of these is the government’s greater control of high-energy-cost and high-pollution industries. The yuan value and labor cost will continue increasing.
What is your company’s plan for 2012 and the next five years?
Our primary goal is to boost our shipments in mature markets where demand for our products is high. We will also research new markets. Meanwhile, our five-year goal is to stabilize mature markets and explore new areas. We hope to maintain product sales and diversify our products. Further, we will strive to enhance export sales via international sourcing and sale localization policies.
What is your forecast for the next six months?
It is difficult to provide projections. Orders may increase from mid to end of October because of the Canton Fair. Raw material costs may also swell and lead to product price increases. But because of falling international raw material costs and raw material surplus, there is also a possibility that prices will go down. In addition, there are many other domestic and overseas factors that will influence the pricing trend for the next six months.
What new products will be launched next year?
We will improve our present selection to introduce products with higher technology levels, profits, and fewer competitors. Besides aluminum products, are there plans to release other items? Yes, of course. These include silk screen, tires, and aluminum doors and windows.
Which geographic markets will your company target?
Our company will eye markets across the globe, including Europe, North America, the Middle East, Africa, South America and Southeast Asia. Europe and North America are mature markets, but competition is stiffer. We think our exports to these destinations can still be widened, which will be important research areas. We will also speed up R&D in other new markets to maintain our exports.
How is your company coping with the yuan revaluation?
The yuan revaluation drove some of our clients to other sourcing countries such as India, Vietnam and Thailand. We also lost profits due to long-term credit orders. To cope, we plan on enhancing our add-on service level as well as innovate our cooperation system to boost competitiveness and preserve our loyal customers. We will also shorten delivery terms and use various financial products to sell foreign currency early and lessen risks from the volatile exchange rate.
How does your company attract domestic and overseas buyers amid furious competition? What about your after-sales service?
We offer attractive quotes, good quality, on-time delivery and excellent service. We will also provide quality warranties to buyers as well as monitor and resolve problems from purchase to consumption. In addition, we will improve our products and manufacturing process through the feedback we gather from clients.
How has your company fared this year? What is your outlook for 2012?
The first half of the year was upbeat for the company with various policies boosting export conditions. The latter part of the year, however, has been difficult because of the gloomy global economy. Varying raw material costs and currency rate, for instance, has made business more difficult.
With harder challenges ahead, we think the condition will worsen next year. It is also possible for the government to reduce export tax rebate on aluminum products. The US may also charge anti-dumping duties on China’s aluminum products. These will add even greater pressure on aluminum product suppliers, including our company. There are also other obstacles projected next year that will affect our export business. One of these is the government’s greater control of high-energy-cost and high-pollution industries. The yuan value and labor cost will continue increasing.
What is your company’s plan for 2012 and the next five years?
Our primary goal is to boost our shipments in mature markets where demand for our products is high. We will also research new markets. Meanwhile, our five-year goal is to stabilize mature markets and explore new areas. We hope to maintain product sales and diversify our products. Further, we will strive to enhance export sales via international sourcing and sale localization policies.
What is your forecast for the next six months?
It is difficult to provide projections. Orders may increase from mid to end of October because of the Canton Fair. Raw material costs may also swell and lead to product price increases. But because of falling international raw material costs and raw material surplus, there is also a possibility that prices will go down. In addition, there are many other domestic and overseas factors that will influence the pricing trend for the next six months.
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