Tire cord maker Shoujia Technology studies Romania for European plant

Shanghai, China – Chinese steel tire cord maker Shoujia Technology is studying the feasibility of building a manufacturing base in Eastern Europe as part of its overseas growth strategy.

In late June, the company’s vice chairman Zhao Yue led a delegation to Romania to advance plans for what it described as a “high-end steel cord production base.”

According to a 1 July social media post, the team met with local government officials in an unnamed Romanian city to discuss issues such as labour, infrastructure, industrial park facilities and vocational education.

The post included images of an office in Oradea, a city bordering Hungary where Nokian Tyres recently opened its zero-emissions tire plant.

If approved, Shoujia said the European facility would help to optimise its global production layout and strengthen its position in the regional market.

The move is part of what the company called a “dual approach of building overseas capacity”  – the stratgey also involves pursuing industry acquisitions.

The company noted that its overseas business has grown rapidly in recent years.

Exports, it said, have reached nearly 40% of total sales over the past two years, with plans to increase to over 50% this year

Shoujia is also building a global sales, logistics and service system to support its international ambitions.

To fund this strategy, Shoujia pointed to its "strong performance" in the capital market, with its share price rising more than 100% since the start of 2024.

The company also completed two rights offerings in the past year, the latest in May, raising HK$277 million (€30 million) to support capacity improvements and overseas expansion.

Alongside the European project, Shoujia said it is also pursuing mergers and acquisitions of other high-quality steel cord producers to integrate production bases and customer resources.

In September 2024, it announced plans to establish a joint venture in Singapore with shareholder RZHL to support overseas capacity development and market integration.

The company said its goal is to become “a leading global supplier” through a strategy that combines capital strength, brand development and international expansion.