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Strong supply chain boosts Qingdao truck parts hub

Makers offer a growing range of tires, axles, and brake and engine parts.

Qingdao remains a primary sourcing center in China for truck parts. Makers of the line leverage a mature network of support industries, established transportation system and growing overseas investment to nurture the sector.

This city in Shandong province hosts 300 to 500 manufacturers of brake pads and shoes and tires. The third segment is pursued by 50 to 100 companies, mostly small and midsize operations with an annual capacity lower than 1 million pieces, more than a fifth of China’s total. There are also over 100 trading firms for truck tires.

Qingdao Yellowsea Rubber Co. Ltd is a major supplier of tires with yearly capacity exceeding 15 million pieces. The manufacturer offers semi- and all-steel radial tires.

Meanwhile, Qingte Group Co. Ltd, which specializes in axles, is now recognized as the national technology center for drive axles.

Makers in Qingdao benefit from Shandong’s established industrial chain for truck parts and related products. Enterprises, for instance, tap suppliers in the cities of Jinan, Zhucheng, Yantai and Weifang. Weichai Power Co. Ltd, one of the largest suppliers of vehicle parts based in the last area, offers engines, gear boxes and axles. The city also hosts major manufacturers of aluminum alloy wheels and rims, including Wanfeng Auto Wheel Co. Ltd.

Further, several large truck makers in Qingdao and Shandong help generate enough demand for corresponding parts. FAW Jiefang Qingdao Automobile Co. Ltd, Qingdao Yakai Special Automobile Co. Ltd and China National Heavy Duty Truck Group Corp Ltd are among the top enterprises that roll out models from this category.

Qingdao’s location also proves to be advantageous in sourcing inputs and delivering finished products to both local and overseas customers. The area’s comprehensive transport system covers an international airport, a railway system, seaports and expressways. There are two ferry lines that link the city to South Korea, and another one to Japan. The area’s seaports have built cooperative relations with 450 ports in 130 countries worldwide. In 2011, it ranked the seventh-busiest by cargo volume worldwide, having handled 372 million tons of cargo during the period.

Capital investment and technology transfer from international players are providing additional impetus to the truck parts market in Qingdao. Bosch commenced setting up a branch in the area in November last year, infusing more than $250 million for the manufacture of diesel engine parts. This is in line with China’s efforts to implement Euro 3 in 2013.

Japan-based vehicle bearing supplier SKF started as early as 2001, by authorizing production of the line to Shandong Jiarui Power Equipment Co. Ltd. Today, the latter rolls out seals, linear actuators and power transmissions as well. 

Click here to read the complete article on Global Sources.

Note: This article "Strong supply chain boosts Qingdao truck parts hub" was originally published by Global Sources, a leading business-to-business media company and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through e-magazines and trade shows.

All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.

Disclaimer: All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. We, our affiliates, and our affiliates' respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party. 

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