Weekly Highlights of Global Investment | Issue 78, July 13, 2024

Brief

Turkey adjusts tariff policies；Ningbo Zhenyu builds factory in Serbia；Minth Group to invest 870 million euros for a factory in Serbia；Desay SV builds new factory in Spain to further into the global automotive industry chain；BYD invested $1 billion to build a factory in Turkey；Zeiss Group's new research and development manufacturing base in Suzhou has officially opened；Nayuki Tea opens its first store at Changi Airport in Singapore；Aeon Thailand's intelligent ecological factory is about to be completed；Hyundai will establish a research center in Silicon Valley；EVE Energy builds factory in Malaysia；POP MART's first LABUBU themed store lands in Bangkok；Sany Heavy Energy builds factory in Kazakhstan.

Policy and Industry  Dynamics

Turkey first increases tariffs and then cancels them

On July 5, the official gazette of the Türkiye government published the presidential decree of the Decision on Amending the Levy of Additional Duties on Imported Products, which stipulates that no additional taxes will be levied on the automobile imports within the scope of the investment incentive policy and takes effect immediately. According to the latest regulations, automobile manufacturers investing in Türkiye will enjoy the investment incentive policy, without paying the 40% additional tariff previously stipulated, but only 10% tariff. Türkiye has previously formulated a high tariff policy for imported automobiles against China, on the one hand, it protects its local automobile industry; On the other hand, there is a sense of forcing Chinese car manufacturers to go overseas for localized production. Then Türkiye softened its tariff policy, turning "forcing" into "encouraging".

MNCs Global Investment

Zhenyu Technology Company builds factory in Serbia

On July 11th, the government of Apadin, Serbia announced that China's Ningbo Zhenyu Technology Company plans to invest 50 million euros to open an automotive parts factory in Apadin. The two sides signed a memorandum of understanding on June 28th regarding the project. According to the plan, Chinese investors will invest 50 million euros between 2024 and 2028 in the construction, equipment, and production of a new factory, which will initially employ 150 workers.

Minth Group will invest 870 million Euros to build a factory in Serbia

On July 11th, the Serbian government passed a decree approving the memorandum of understanding signed with China Minth Group Limited. Minth Group Limited will open a manufacturing plant in Serbia. The company plans to invest 870 million euros in the next decade and hire 2220 employees in the new factory. This investment project will be used for various purposes: automotive and related industries, manufacturing of electric vehicles and buses, production of photovoltaic modules and building materials, as well as establishing supply chains in certain areas in the town of Inja in the province of Vojvodina. In Serbia, Minth Group Limited has production facilities in Loznica and Š abac to produce automotive parts.

Desay SV builds new factory in Spain to further integrate into the global automotive industry chain

On July 10th, Desay SV began construction of a new display production facility in Europe. The new factory is located in Linares, Andalusia, Spain, approximately 300 kilometers south of Madrid. It is expected that the factory will be completed by the end of 2025 and begin supplying customers with a series of intelligent products in the fields of intelligent cockpit and intelligent driving in 2026. The in car display products will be the first batch of products to be put into production. The establishment of modern smart factories in Spain means that Desay SV will be able to utilize localized production capabilities, respond faster to the needs of European and surrounding markets, shorten delivery times, and accelerate service speed.

BYD invested $1 billion to build a factory in Turkey

On July 8, BYD signed an agreement with the Turkish government to invest and build factories in Türkiye, and Türkiye President Recep Tayyip Erdogan attended the signing ceremony. According to the agreement, BYD will invest approximately 1 billion US dollars (currently about 7.294 billion RMB) to establish a factory and research and development center with an annual output of 150000 vehicles. The factory plans to start production by the end of 2026 and will provide job opportunities for up to 5000 workers.

Carl Zeiss AG's new research and development manufacturing base in Suzhou has officially opened

On July 8th, Carl Zeiss AG, a global leader in optics and optoelectronics technology, officially opened its new research and manufacturing base in Suzhou Industrial Park. This is the first time that Carl Zeiss AG has purchased land and built a factory in China, with a total land area of over 13000 square meters. In the future, it will become an important research and manufacturing base for Zeiss industrial quality, research microscopes, surgical microscopes, and ophthalmic equipment in China. This marks the further deepening of Carl Zeiss AG' localization strategy in China and the upgrading of its local R&D and manufacturing capabilities.

NAIXUE opens its first store at Changi Airport in Singapore

On July 8th, China's top tea beverage brand NAIXUE Tea (02150. HK) opened its first overseas store at Jewel Changi Airport in Singapore. The store officially welcomed customers on July 5, 2024, and the three popular drinks launched by the store were highly sought after. NAIXUE Singapore store is the second overseas branch after the Bangkok store in Thailand. It is reported that NAIXUE plans to continue opening new stores in overseas markets such as the UK and the US this year.

GAC Aion Thailand's intelligent ecological factory is about to be completed

On July 8th, it was learned from Tiantian Automobile that GAC Aion announced that the Thailand Intelligent Ecological Factory will be officially completed in mid July, and the highly anticipated second-generation GAC Aion will also be rolled off the production line globally. This means that substantial progress has been made in the development of safety spheroidization in Egypt, ushering in a new stage from "product going global" to "ecological going global".

Hyundai will establish a research center in Silicon Valley

On July 8th, Hyundai sought to establish a software research center in Silicon Valley. The center will focus on advanced technologies that will be applied to automobiles in 5-10 years, rather than technologies that can be used immediately.

EVE Energy builds factory in Malaysia

On July 6th, EVE Energy announced that its wholly-owned subsidiary EVE Energy Malaysia Limited will invest in the construction of energy storage and consumer battery manufacturing projects with its own and self raised funds. The total investment for the project will not exceed RMB 3277.07 million, with a construction land area of approximately 220000 square meters and a construction period of no more than 2.5 years.

POP MART's first LABUBU themed store lands in Bangkok

On July 5th, the first LABUBU IP themed store of Pop Mart officially opened at MEGA BANGNA mall in Bangkok. On the first day of opening, the revenue exceeded 10 million yuan, setting a new record for daily sales of overseas stores. In May 2023, Pop Mart announced its official entry into Thailand and opened its first store in September of the same year. Currently, Pop Mart has opened six offline stores in Thailand.

Sany Renewable Energy builds factory in Kazakhstan

In early July, Chinese wind turbine manufacturer Sany Renewable Energy signed an agreement with Kazakhstan's Samruk Kazyna National Wealth Fund Co., Ltd. to establish a localized production factory for wind turbine components in Kazakhstan. It is reported that the estimated cost of the project is 114 million US dollars, and the factory location has been preliminarily selected in the southern part of Harbin, in the Jiangbu'er region. The relevant person in charge of Samruk Kazena National Wealth Fund Co., Ltd. stated that Sany Renewable Energy has started the preliminary preparation work for the project.

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