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China Metal Casting Foundries, Current Situation, Production and Development

1.) In general terms, how would you describe the state of the metal casting / foundry industry in China today? (Robustness, growth, trends etc.)

Metal castings are the base of industry and residential, so still and will have good demand from worldwide, good market will mean the long term development of metal foundries, so currently, the development of metal foundries in China is good. However, the total amount of foundries will be reduced because of the government control for environment protection and fierce competition. Some foundries will become larger, and some small foundries will be vanished.

2.) If your company has any involvement in the Chinese foundry industry or market, please can you briefly summarize it. What advantages does operating in China bring your company?

We are a metal foundry, so I can not answer this question; however, I believe that our clients reduced their production costs when they bought metal castings from us.

3.) Are there any particularly geographical areas of China where the foundry industry is growing or developing particularly strongly? If so, why is this?

The main locations for metal foundries are Ningbo, Shandong, Liaoning, Hebei. These four plates have many iron and steel foundries. I think it is because these locations can reach main raw materials (pig iron) easier, and had long history for heavy industrial manufacturing. Take Liaoning as example, it is the main industrial base when new China founded.

4.) In terms of production, is the Chinese foundry industry focusing on any particular areas right now? (Automobiles, heavy castings etc.)

No, there is no distinct focus for types of metal castings in these areas. This is not good for development, but this is current situation.

5.) What is the state of health and safety in Chinese foundries?

The protection to workers health and safety in China foundries is not good. The protection is very preliminary such as safety goggles, work clothes, face mask etc. The warning sign, safety operation guide and better and more protection are not enough.

6.) Efforts are being made to reduce the environmental impact of China's foundry industry. In your opinion, how successful have these been? Is low emissions / waste minimization technology being used / implemented widely?

Yes, our government is investing to control and improve the environmental impact, however, the improvement is still very small, China is too big and too many metal foundries and other industrial factories, so the improvement speed will be slower than other countries.

7.) In very general terms, how does the technology employed by the Chinese foundry industry compare with that in Europe or North America? Is China still playing catch-up or are there some very sophisticated Chinese foundries out there already?

Yes, there are some very large foundries, who are using very state of art technology and also control pollution very well, however, most of middle and small foundries are still much slower than those in Europe and America for this aspect.

8.) How do you see the Chinese foundry industry developing over the next 5-10 years? What are the major challenges the Chinese foundry industry faces going forwards? Will there be more partnerships with Western companies?

In the next years, some small and middle foundries will be vanished because of government control and bad economy. Most clients will choose the better foundries or choose the foundries in India for lower prices.

However, because other countries are also controlling pollution for metal foundries, but the total demand volume will not reduce, so the buyers will still keep their eyes on Chinese foundries. The survived metal foundries will not need to worry about the markets. Therefore, the main challenge will be how to guarantee the quality, how to reduce the production costs, how to improve the pollution impact, how to keep the stable manpower. The stable quality will be the largest challenge.

Although partnership with European and American are still very few now, this should be a direction. The overseas buyers could invest some to the China foundries, so they can get lower prices and stable supplies. The metal foundries overseas could invest to some foundries in China, so they could move their production orders to China.



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