Shanghai, China—Over the last few years, U.S. tariffs against China have created a slowdown in the commercial relations between the two countries. Several Chinese producers have found a solution in moving part of their production lines to Southeast Asian countries. This move not only helps them control quality and keep prices as low as before, but it also enables business dealings with their U.S. counterparts. The most common countries chosen in the region are Malaysia, Thailand, Cambodia, Indonesia and Vietnam.
The 22nd edition of Domotex asia/ChinaFloor will introduce its first Southeast Asian Business Hub—an exclusive area showcasing resilient and wood flooring exhibitors with production facilities in the Southeast Asian region. The Hub is located in N2 Hall of the Shanghai New International Expo Center and is situated in the center of the hall. With more than 8,600 square feet of booth space and a distinguished area, the Hub is expected to attract attention of the industry professionals.
Royal Crystal, a leading Vietnamese flooring brands, booked a space in the Hub only a few days after the announcement of the new area. Domestic companies, such as Tianzhen Flooring, are also lining up for booth space. Established in 2003 in Anji city, Tianzhen Flooring has a long history of exporting to the U.S., Europe, Canada, Korea, Japan and Australia. Last year it decided to move a part of its production lines to Vietnam. The factory has been operational and producing LVT, WPC and SPC flooring since last month.
“Tariffs have resulted in manufacturing being developed in countries in Southeast Asia, mostly though Asian manufacturers expanding into different countries,” explained Thomas Baert, president of Firmfit and CFL Flooring. “Uncertainty will not disappear anytime soon, even if certain 301 tariffs have recently been rescinded. Our target is to be able to continue to provide flexible solutions that are above geopolitical risks.”
Earlier this year, CFL moved some of the production lines to Vietnam.
For more information, visit: domotexasiachinafloor.com