"Sino African Cooperation" Shoe Enterprises In Africa

Yesterday, reporters learned from Wenzhou shoe enterprises hahan shoes industry Co., Ltd., the enterprise has signed an agreement with Nigeria Lagos Lai Ji free trade area, invest 500 million yuan in the area, build 400 acres of "Africa shoes capital", this move will further enhance the development level of the African footwear industry.

Africa's largest shoe-making base

It is understood that the project is divided into two phases, the first phase of 100 acres by the Nigeria branch of Kazakhstan Atlantic Company self occupied, the two phase 300 acres in the form of rental or pfer, the introduction of local shoe enterprises.

The project construction period is 3 to 5 years.

After the completion, Nissan's shoes will be the largest shoemaking base in Africa with nearly 200 thousand pairs.

Wang Jianping, chairman of Harbin shoe industry, introduced that in 2004, haw to invest and build factories in Nigeria is a must move.

At that time, Nigeria issued a ban on import orders. If hah Shan did not act, the Nigeria market, which could exceed 30% of the total sales of Kazakhstan, could be completely lost.

And this investment to build the African shoe capital is a strategic layout of haw.

Wang Jianping believes that the negative impact of the US subprime mortgage crisis will become more and more obvious. In addition to the rising cost of raw materials and the change of the RMB exchange rate, China's traditional industries are facing another major adjustment.

In 2007, the net profit rate of Wenzhou footwear industry was 1.5%-2%, while the Atlantic Company's pure profit rate was 15%.

Not only that, the products of Kazakhstan Atlantic Company can enjoy unimpeded zero tariffs throughout Africa, but also enjoy preferential policies in the European Union and the US market.

Improving the level of African footwear industry

When Kazakhstan entered Nigeria in 2004, the largest shoemaking enterprise in the region was only more than 50 people, or the Germans.

By the impact of Chinese products, the Germans have already pferred their businesses to local people.

When Kazakhstan Atlantic Company was put into production, the company was on the verge of bankruptcy.

Kazakhstan did not succeed in pursuit, but helped them to carry out technological pformation.

Soon, the business was brought back to life, and now its scale has expanded.

Wang Jianping said that 3 years ago, the level of shoemaking in Nigeria was at least 20 years worse than that in Wenzhou. Now it has narrowed the gap of 10 years.

Overseas investment requires not only the business intelligence of the enterprises going out, but also the political wisdom.

Kazakhstan should not only consider its own development in Nigeria, but also take the mission of developing the whole industry.

In 2004, when Kazakhstan began investing locally, 99% of its raw materials were imported from Wenzhou, and now the proportion has dropped to 78%.

At that time, a local carton factory with only 3 people was developing to more than 30 people under the cultivation of Kazakhstan, the largest carton factory in the region.

Now, the local shoe industry chain has taken shape, and of course, it is also benefiting the whole industry.

After the completion of the African shoe capital, the local production capacity can be increased by 30-50 times. In 3-5 years, the local purchasing rate can be raised to about 50%, and the industrial chain has been further improved.

"The whole industry has developed, and as a leader of the industry, it has been able to resist investment political risk as much as possible."

Wang Jianping explained.

Investing in Africa is just in time.

On the 2006 China Africa Cooperation Forum, President Hu Jintao announced that China will invest 500 billion yuan in Africa.

Wang Jianping introduced that investing in the Nigeria project can not only lend money to the import and export bank, but also grant 25% of the loan interest, 25% of the provincial subsidy, 50% of the state subsidy, which is equivalent to the interest free loan, and the state has special funds to participate in the stock market. The fund does not require holding, only requires 5 years to withdraw without loss.

Ma Jinlong, a professor at Wenzhou University, thinks that Wenzhou should adjust its industrial structure, but for many small businesses, it is not very realistic to improve the technology or improve it on the basis.

Traditional industries are still the advantage of Wenzhou. When this advantage is constantly weakening in the big environment, going out, especially in Africa, is also a way out.

Su Xiangqing, director of the Municipal Bureau of foreign trade and economic cooperation, said that not only Wenzhou, but also China's foreign trade is facing a grim situation.

The next step of the Council's work is to guide the export of Wenzhou's capital, especially the output of capital and technology in traditional industries. The target is Vietnam, Africa and other countries and regions.