Beaulieu builds second factory in China

Two short articles this weekend on the back pages of Trends.Knack and De Tijd : “Beaulieu builds second factory in China”. No announcement whatsoever on Beaulieu’s own website.

The Beaulieu Group is a manufacturer of textiles and carpets for construction works, house and car interiors. It’s remarkable news though and – in my opinion – deserves a little more attention, because:

Beaulieu is a manufacturer of Belgian origin. Not everyday, a Belgian company announces to start or increase its investments in China.

Furthermore.
As Patrick Chovanec argues in a series of articles, the real estate market in China is in a troubled condition.
Secondly, selling cars assumes China’s national consumption will be strong; which precisely has been an objective of the Chinese government for quite some time now.

In both cases, the demand for their products seems far from ensured. On the other hand, the company has plenty of experience in the Chinese market. They already have a factory in Rizhao, Shangdong province, and their CEO Geert Roelens was involved in the China expansion of Bekaert. We can assume they did their homework.

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