How Fuyao, at the centre of the Obamas’ film American Factory, became a dominant player, and why it is under pressure now
- Netflix documentary is putting a spotlight on business created by ‘rags-to-riches’ Cao Dewang
- Slowdown in China’s auto industry is huge challenge for glassmaker tied closely to it
Fuyao Glass Industry Group, which shot to fame recently thanks to the popular documentary American Factory, has come a long way from its founding as a countryside plant three decades ago to dominate a quarter of the global car glass market.
Seen by many as a flagship of China’s manufacturing prowess, the company now faces a grave challenge today – the slowdown in the country’s car market following years of breakneck expansion.
But investors and analysts are overall confident Fuyao could find new growth in overseas markets, based on its efficient management and competitive pricing.
The fortunes of Fuyao are closely linked to China’s car market, which soared from being nearly non-existent to the world’s largest with 28 million units sold last year in less than three decades. The company counts major carmakers such as BMW, Volkswagen and Toyota as its customers.
“Fuyao’s success is largely a result of chairman Cao’s superb judgment and persistence … he grabbed onto the massive opportunity in the development of China’s automobile industry,” said Yang Delong, chief economist at Shenzhen-based First Seafront Fund Management.
