Chinese Steel Cord Manufacturers Accelerate Internationalization: Shougang Century Holdings Limited (103.HK) Expands Further into Eastern Europe
HONG KONG, July 10, 2025 /PRNewswire/ -- In recent years, the global steel cord industry has undergone continuous transformation. As the tire industry rapidly develops, steel cords—regarded as the "skeleton material" of tires—have seen their supply stability and cost advantages become key competitive factors. Against this backdrop, Chinese steel cord manufacturers are accelerating their internationalization by building overseas factories closer to global tire production hubs, aiming to capture market share. Among them, Shougang Century Holdings Limited (103.HK) (Hereafter referred to as Shougang Century) stands out.
In late June 2025, Shougang Century's Vice Chairman Zhao Yue led a core team to Europe to conduct an in-depth market study in Romania, evaluating the feasibility of establishing a high-end steel cord production base abroad. With its established industrial foundation, high-quality labor force, and geographic advantages, Romania has emerged as an ideal choice for the company's Eastern European expansion. If the project is implemented, it will significantly optimize the company's global production layout.
Shougang Century's overseas expansion is not an isolated case. Recently, other Chinese steel cord enterprises such as Shandong Daye shares and Henan Hengxing Technology have also set their sights on Eastern Europe, Southeast Asia, and North Africa, accelerating globalization through new factories or acquisitions. This trend is driven not only by intensified domestic competition but also by the need to mitigate trade risks and move closer to end customers. Leveraging its technological edge and strong capital support, Shougang Century has become a standout player in this wave of internationalization. The company previously raised HKD 277 million in two rounds of rights issues, ensuring strong funding for its global strategy. Its overseas business now accounts for 40% of revenue, with a future target of over 50%.
Industry experts believe that as Chinese companies like Shougang Century accelerate their capacity deployment in Eastern Europe, Southeast Asia, and North Africa, the global steel cord market may undergo another round of structural reshaping. In the future, aligning capacity with end markets and forming localized supply chains will greatly enhance the influence and stability of Chinese steel cord manufacturers within the global tire industry value chain.
SOURCE Shougang Century Holdings Limited
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