A U.S.-invested belt company in southwest China's Guizhou Province has been able to grow alongside China's economic development and expand its presence in the global market thanks to the country's innovative and stable business environment.
In 2011, Dayco, a global manufacturer and distributor of essential engine drive systems and aftermarket services for automotives, set up its belt manufacturing facility in Guiyang, capital city of Guizhou Province.
In 2015, the introduction of cost-effective belts enabled the company to expand its aftermarket presence in North and South America, increasing its annual output from 3 million belts to 6 million.
By 2020, demand from the European and North American markets propelled the company's annual output to 9 million.
Thirteen years after its establishment, Dayco has become a major belt provider for vehicles, operating seven mature auto production lines across two plants that produce around 850,000 belts per month.
The biggest plant features over 2,000 molds capable of producing more than 20,000 types of belts.
"This weighing equipment for raw materials features automatic error prevention and data collection, with all components produced domestically. Over 90 percent of the equipment in our main plant is sourced from local manufacturers. We have also recommended these high-performance domestic tools to our overseas factories," said Wang Yi, quality manager at Dayco's Guiyang factory.
"We see plenty of opportunities in commercial vehicles, two wheelers, e-bikes. And we see as well that the Chinese market is driving innovations and that's why, for us, it's important to be there and continue with the investments," said Thomas Jauch, Vice President and Managing Director, Global Belts of Dayco.
Currently, Dayco has invested approximately 130 million yuan (about 19.7 million U.S. dollars) in its Guiyang factory, supplying products to regular customers in major Chinese cities and exporting to the global market. It is projected that around 78 percent of its overall output will be exported to international customers.
"I think foreign investors are looking for two things, they look for expanding market with innovations, and second, they look for a stable environment that the business where they are operating is supported. And I think both conditions are fulfilled in China, so we from Dayco are convinced to further invest in China," said Jauch.
US belt company strengthens presence in China for global market
US belt company strengthens presence in China for global market
