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Dilemma of investment casting in China

2021-04-23
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Development predicament of investment casting industry

(1) Limited financing channels restrict subsequent development potential

Foundry industry is a capital intensive industry, while most of the foundry enterprises invested primarily funded by retained earnings of the rolling enterprise and bank indirect financing, the financing channels of a single, will not be able to better support the enterprise scale continues to expand, make enterprise good investment project implementation is difficult, the subsequent development of the enterprise potential is in control


(2) Lack of scale advantage and synergistic effect of industrial chain

Most of the small and medium-sized foundry enterprises in China have small production scale, backward equipment, low technological level, no scale effect, and weak anti-risk ability in the fierce competition environment of foundry industry.In casting material control, precision machining and other aspects of production and research and development, it can produce synergy with the downstream application industry, which is not conducive to the improvement of the overall competitiveness of the industry.


(3) Weak demand and no market resources

The main difficulty facing foundry enterprises should also be the lack of market resources, at present.Sales have dropped off sharply.Specifically, the casting entry is blocked, and the demand of domestic OEMs is weak.

In early November of last year, data showed that.Two research groups in the industry respectively to the East China, Central China, Southwest and other regions of more than a dozen major foundry enterprises were investigated, the investigation found that most of the foundry enterprises are in the state of production or semi-production, the least started only about a week a month.For casting products import, the North American market suffered the most severe contraction. Among the two foreign-funded foundry enterprises surveyed in East China, one of them reduced its market in North America by 40%. For the other company whose products import to Ford and General Motors, its business in North America shrank to zero.

The personage analysis inside course of study points out, for this.At present, the casting market resources are very limited. In the process of competing for these market resources, some enterprises with good product quality and low product interest will win.Enterprises with small scale, shortage of capital, and uncompetitive product quality and cost can only stop production or half-stop production because they cannot compete for market resources. If the economic crisis lasts longer, these enterprises can only go bankrupt.


(4) Limitations of core technologies

Due to the limitation of technical level and equipment conditions, China's investment casting industry can not produce some key castings which are urgently needed by all industries in the world, especially some highly difficult and demanding castings.In order to change this situation, it is necessary to increase the restructuring and structural adjustment of foundry enterprises, develop specialized production, further expand the scale of superior enterprises, and improve the level of technology and equipment of enterprises.It is necessary to increase the investment of science and technology, establish the R&D center of enterprises and implement the R&D system combining production, education and research to promote the independent innovation.


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