Ukrainian emerging potential market for Chinese rubber companies

“Ukraine should become one of the emerging potential markets for China's rubber industry.” Xu Wenying, deputy secretary-general of the China Rubber Industry Association, who had just visited Ukraine last month, said in an interview that Ukraine is an urgently needed market for the Chinese rubber industry. Chinese rubber products are also rarely exported to Ukraine.
Xu Wenying pointed out that on the one hand, Ukraine is the second largest European country after Russia, with good highway facilities and high vehicle ownership. Nearly every family in Kiev has at least one car, automobile industry and even tire industry. The market demand for rubber and rubber products is very large; on the other hand, Ukrainian domestic rubber producers are fewer, the production costs are higher, and Chinese products have a competitive advantage. Therefore, rubber additives, skeleton materials, rubber machinery, tires, and pipe belts produced in China Waiting in Ukraine has a broad market prospect.
When Xu Wenying examined the Ukrainian market, Ukrainian rubber companies did not know much about the Chinese rubber industry. She said: “When I talked to them and found out that they were very confident about the quality of their products, they thought that Chinese rubber products were backward and sold cheaply. But through inspections, we discovered that many Chinese rubber products have far exceeded the technology and quality. And their products are about 30% more expensive than us. However, the Ukrainian people are more friendly to China, and Chinese rubber companies should pay attention to Ukraine and other Eastern European markets when adjusting their export market structure."
Xu Wenying said that this inspection was the first time that the China Rubber Industry Association organized domestic rubber companies to go to Ukraine. The main purpose was to hope to understand the basic situation of the Ukrainian rubber industry on the ground and prepare for the next step in the development of Ukrainian and Eastern European markets.
Xu Wenying pointed out that the global financial crisis has had a huge impact on the Ukrainian market. Many companies have closed down or stopped production. This is particularly prominent at Ukraine's most professional and largest rubber exhibition. One of the important activities of the China Rubber Industry Delegation to visit Ukraine was to visit the Eleventh Ukrainian International Rubber Exhibition held in Kiev, the capital of Ukraine. However, the result of the visit was disappointing. First, the scale of the exhibition was less than 40 booths and more than 80 exhibitors. Second, the internationalization of the exhibition was relatively low. Apart from two Russian companies and five Chinese companies, the exhibitors were all Ukrainians. Local companies; Third, the audience is very few, the most important audience is the Chinese rubber industry delegation from afar. The organizers explained that this year's small scale was mainly affected by the financial crisis. Last year there were more than 150 exhibitors and 80 booths. The number of visitors was more than 1,000. This year it was only half of last year.
However, Xu Wenying still has great confidence in the Ukrainian market. Ukraine is an important production base for passenger cars, trucks and cars in the former Soviet Union. After the disintegration of the former Soviet Union, although the Ukrainian automobile industry experienced a period of silence, it has now entered a new development track. According to reports, the number of Ukrainian-owned cars is 130, which is lower than that of Russia's 167 cars, far lower than the average of 323 cars in Eastern European countries and more than 500 cars in Western European countries. Ukrainian car ownership increases by 8% each year and it now reaches about 7 million vehicles (of which about 6 million are cars). Its average life span of 13 years, of which 3.5 million vehicles from Russia even have an average life expectancy of more than 18 years, millions of old cars will gradually enter the replacement cycle, which will be of great significance to Chinese auto and parts manufacturers. It is a great opportunity. Chinese cars enter the Ukrainian market for only a short period of two years, but according to statistics from the Ukrainian Automobile Information Consulting Company, Chinese cars account for 30% to 40% of Ukraine’s market share in economy family cars below 10,000 Euros. Tire companies should have greater business opportunities.
In addition, the Chinese rubber industry delegation also visited two factories in Ukraine, one is a hose tape factory in Kiev City, and the other is a Rosava tire factory about 80 kilometers from Kiev city. The Rosava Tire Factory, founded in 1972, is one of the 17 tire factories of the Soviet Union and is currently the largest of the only three tire factories in the Ukrainian state. It produces about 550,000 tires and semi-steel tires each year. .
The entire factory is large in area and there is no odor in the factory. The entire factory has a high level of logistics automation and production specialization. However, molding machines and other equipment are old-fashioned. There are no advanced Chinese-made molding machines. Therefore, Chinese rubber machinery should make a difference in Ukraine. .
Xu Wenying told reporters that Chinese rubber additive companies have begun to pay attention to the Ukrainian market. At the Ukrainian International Rubber Exhibition, five companies including the Northeast Auxiliary, Shandong Hailong Bolette, Junma Chemical Fiber, Jiangsu Shengao, and Huangdong Huangdong participated in the exhibition. They hope to enter Ukraine as soon as possible through this exhibition. The surrounding countries market.
Xu Wenying finally reminded companies that because Ukrainians are relatively conservative and the language is mainly Russian, few people can communicate in English, so communication is not smooth. "English is not used in Ukraine at all. If Chinese rubber companies want to develop the Ukrainian market, they must solve language communication problems."

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