Japanese businesses expand in Dongguan, bullish about China's NEV market

[Photo provided to chinadaily.com.cn]

Dongguan in Guangdong province, a crucial economic partner for Japan over the past three decades, has evolved into a pivotal trade hub since the establishment of the first Japanese enterprise there in 1986.

Currently, a total of 394 Japanese enterprises have flourished in the city, amassing a substantial investment of $5.44 billion. This solidifies Japan's standing as the third-largest source of foreign capital for Dongguan.

As China's automotive industry undergoes a transformative phase, drawing foreign enterprises to establish factories is an imperative, owing to the nation's mature manufacturing capabilities and burgeoning market demands.

Simultaneously, Dongguan is actively propelling its new energy vehicle industry, aiming to create a distinctive hub for the development of the new energy sector in the Greater Bay Area.

[Photo provided to chinadaily.com.cn]

In light of this, Fukuju Automotive Parts (Dongguan) and the Nachi C.H. Dongguan Corporation have made the strategic decision to establish a local presence in China. Their success stories underscore Dongguan's allure and strength as a significant manufacturing hub. Both enterprises have contributed substantially to the development of Dongguan's automotive industry and the exploration of the new energy frontier.

Following thorough investigations at over 30 locations, Fukuju Industry officially settled in Dongguan in December 2010, establishing Fukuju Automotive Parts (Dongguan) as part of its preliminary expansion into the GBA.

"To promptly respond to customer demands, within six months, the Dongguan government swiftly assisted us in leasing factories, resolving equipment import issues, and expediting the production process," remarked the general manager of Fukuju’s Dongguan firm. The efficient support provided by the Dongguan government enabled Fukuju Industry to commence production within a short timeframe.

Transitioning from a company primarily engaged in gasoline car’s components to actively pursuing the shift in the Chinese market toward new energy vehicles, Fukuju Industry collaborates with numerous Dongguan enterprises. "We are actively seeking cooperation with new energy-related Chinese companies. In our future work, we will leverage various advantages in Dongguan to develop more new energy projects," added the general manager.

In parallel, in October 2015, Nachi-Fujikoshi Corp, a Japanese company with nearly a century of history, established the Nachi C.H. Dongguan Corporation, which has been in full production since April 2016.

General manager of the Nachi C.H. Dongguan Corporation highlighted that the main reason for Nachi Fujikoshi Corporation's selection of Dongguan was its significant geographical advantage. Major customers such as Honda and Toyota have established factories in Guangdong, and Dongguan's strategic location further enhances its appeal. "If China is the 'world's factory,' then Dongguan undoubtedly plays the most critical role in this factory's assembly line."

“Dongguan spans 34 out of Japan's 41 industrial categories, producing a diverse range of over 60,000 products. With robust industrial support, numerous companies in our industrial park focus on crafting automotive components," expressed the general manager, underscoring his admiration for Dongguan's manufacturing prowess.

"China's investment in hybrid and electric vehicles is among the best in the world. We aim to align with this trend, concentrating on electric vehicle bearing products. Our commitment includes intensified efforts in developing and manufacturing hybrid and electric vehicle products, utilizing Dongguan's industrial advantages to make our company larger and stronger."