Outstanding foreign trade enterprises in Ningbo
Foreign trade, a pillar industry of Ningbo, a coastal city in Zhejiang province, maintained a strong development momentum last year. Statistics from Hangzhou Customs show that the city's total volume of foreign trade was 760.01 billion yuan ($120.73 billion) in 2017, a year-on-year increase of 21.3 percent, and that the value of exports reached 498.41 billion yuan, increasing by 14.3 percent. Both results ranked first in the province.
As of now, the city is home to more than 11,000 foreign trade enterprises. There are approximately two million people engaged in foreign trade with a per capita annual volume of more than $10,000, surpassing that of Italy and Japan.
The rapid increase of foreign trade has helped improve the city's economic structure and benefits. Foreign trade enterprises in the city took up the opportunity to achieve further development by making technological innovation, improving management models and developing new industry formats.
Ningbo Seduno Group: taking advantages of Belt and Road Initiative
Ningbo Seduno Group, founded in 1994, is a knitting clothing enterprise involved in the fields of contexture, dyes, clothing manufacturing, and foreign trade. Its products are exported to the European Union, the US, Japan, Australia, Canada and other foreign markets.
To cope with the global economic downturn, the group kept adjusting business strategies and achieved a nine-percent growth in exports in 2016. As the country spurred on the Belt and Road Initiative, Seduno took the chance and transferred its extra capacity to Southeast Asia.
In Southeast Asia, the group can enjoy the European Union's generalized system of preferences (GSP) policy without paying the 12.7 percent tariff as it must in China. In 2010, Seduno invested $1 million US in Cambodia and the cost was recovered within three years, which motivated the group to invest more in the region. It now has two garment factories in Cambodia and two in Myanmar. The four factories have 4,000 employees.
Due to the increase of labor costs in China, Seduno expanded investment in Southeast Asia. On June 8, 2017, it signed an agreement with Ruisheng (Vietnam) Textile Co Ltd by which it will invest $100 million to build a production base of high-quality fabric with an annual capacity of 30,000 tons, which helps establish a complete clothing industry chain in Southeast Asia. The production base and the garment manufacturing base, occupying some 25,000 square meters, are expected to be completed by 2019 and achieve annual sales of 2.12 billion yuan, accounting for one third of Seduno's total export volume.
Ningbo HOME-DOLLAR: new industry format promotes development
HOME-DOLLAR, founded in 1997, is one of the most professional commodity suppliers in China. With its own brand "HOME-DOLLAR", the company has established long-term cooperation relationships with more than 1,000 enterprises in Europe and the US, as well as more than 2,000 manufacturers. Its exported products are of 30,000 kinds.
The company has kept growing in recent years thanks to the new industry formats. Based on adequate supply and the shipping port, the cross-border e-commerce business saw a rapid development in Ningbo. HOME-DOLLAR is one of the foreign trade companies based on cross-border e-commerce. The company also set up an e-commerce industrial park to expand business, promote its international influence, develop the business to business (B2B) mode, and combine its traditional business models with the internet.
Thanks to its unremitting efforts, HOME-DOLLAR maintained an average annual growth rate of above 30 percent. Its sale volume achieved 1.6 billion yuan in 2016. Among the top 200 Ningbo foreign trade enterprises in the first half of 2017, HOME-DOLLAR ranked 21st, rising by 10 places from 2016. The development goal of the company is to maintain an annual growth rate of 30 percent over the next 10 years.
Zhejiang Mustang Battery Co Ltd: technological innovation promotes battery export
Zhejiang Mustang Battery Co Ltd is a private enterprise specializing in developing, manufacturing and selling different kinds of batteries. As one of the biggest battery manufacturers in China, the company sells its products to more than 70 countries in Europe, North America and Southeast Asia. In the first quarter of 2017, its exports exceeded 150 million yuan, ranking it 139th among all the enterprises in Ningbo.
Advanced technologies played a key role in the company's development process. In 2001, Mustang imported the advanced automatic production line for batteries LR6 and LR03 from Canada. In 2010, it started to develop high speed and efficiency production lines. As of now, four world-leading production lines are in operation and have increased the company's annual production capacity to 720 million pieces.
The Engineering and Technology Center for Primary Battery in Mustang, a provincial level facility, is equipped with 108 sets of test instruments. The alkaline batteries, such as zero-mercury-added alkaline models developed in the center are very popular with markets in the UK and France. Its mercury-cadmium-free green cell and mercury-cadmium-lead free green cell won the Provincial Science and Technology Progress Award. The overall performances of batteries R03P and R6P always ranked top in the spot checks carried out by the National Quality Inspection Center of Light Industry. The company now has patents for the inventions of "high-stable large current alkaline battery" and "alkaline zinc-manganese dioxide cell" and their production methods. A number of new alkaline battery technologies have also been developed by Mustang.
China Base Ningbo Group: public service platform links enterprises with world
Based on its thirty years' experience in foreign trade, China Base Ningbo Group set up an integrated public service platform – China-Base Ningbo Foreign Trade Co Ltd – in 2017. As the first foreign trade service closed loop, the platform involves the fields of basic export services, order management, online insurance, financial settlement and services, and logistics management.
With its advanced enterprise resource planning (ERP) system, the platform allows enterprises to learn about that status of goods and how the businesses are handled, as well as track the whole export process in real-time. The data collected on the platform can be used to evaluate the professional proficiency and operating conditions of foreign trade enterprises and supply a large database for financial institutions for credit rating and loan approvals.
After continuous development the platform now integrates the fields of internet, foreign trade, logistics and finance and provides services for more than 6,000 foreign trade enterprises. The export value achieved through the platform was about one billion dollars in 2015.
China Base Ningbo Group plans to make the platform into a credible third-party foreign trade public service platform, one that will boost the transformation and upgrading of the foreign trade economy in China.