Customer Seminar Molds
into Shape a New China
Mold and dies, known as "the mothers of industry," are developing into powerful engines of growth for China with investments tripling almost every year.
With this growth comes a new industry pattern for China’s mold and die sector due to expansions from the developed Pearl River Delta and Yangtze River Delta regions to inland and northern regions.
In order for the industry to continue its growth in the local market as well as reaching higher levels of respectability on the global stage, China’s mold and die industry is urgently working to establish strong standardization systems for its automotive, electronics, home appliances and other industries.
In order to assist mold and die companies in China achieve higher spheres of production and gain international recognition not only through standardization but also at the consumer level, TaeguTec held a customer seminar for industry professionals looking for advanced tooling systems that cut cost, increase productivity and assist in producing world-class products that are safe and reliable.
“Our automotive products are starting to be used in foreign cars and also there’s the growth of exports of Chinese made cars so we need to find reliable tools that work faster without breaking,” said an executive from one of China’s fastest growing auto parts manufacturers.
Auto sales in China climbed 9.9 percent to almost 20 million vehicles last year but after June's sales drop, the manufacturers association has lowered its estimate for sales growth this year, from an increase of 7 percent to an increase of 3 percent.
“We need to change the current manufacturing model for our cars,” said another automotive executive during the TaeguTec customer seminar. “We can’t rely on cutting tools that do not perform as well, that would be wasteful, we need tools that are technologically advanced – this new way of thinking will permeate throughout our entire manufacturing process so that we can produce better quality cars.”
While a lot is being said about the reasons behind the drop in manufacturing in China such as the plunge in China's stock markets and falling consumer confidence causing uncertainty in the economy, the overall growth will continue.
A recent Fitch Ratings' Report states that overall growth will continue to be driven by ongoing urbanization, rising household income, improving highway infrastructure as well as the "Chinese dream" of car ownership and of upgrading to better-quality vehicles.
For Chinese manufacturers, while the report holds truth, the challenge still remains that fewer cars produced means lower sales.
“We came here to look for ways to increase our bottom line in any possible way. Tooling cost is only a small percentage of the overall production of our parts but it is an important part and at this point, every little bit helps,” said a tooling purchaser for one of the top Chinese auto parts makers.
The drop in growth is not exclusive to the auto sector; the same challenges of production are being felt in the electronics, toys and home appliance industries.
“Even though we produce different products, my peers in the auto sector share the same challenges we face,” said an electronics manufacturer that produces parts for some of the biggest brands in Asia. “That’s why we are looking to move away from cheaper made cutting tools, we just can’t keep stopping our production to change an insert or a holder just because it breaks, production needs to move at a smooth pace.”
After the seminar, the electronics executive spoke almost immediately to one of TaeguTec’s product managers concerning the possibility of starting tests on some of their milling machines.
Theory was not the only factor during the seminar, extensive testing on a range of materials used in the production of mold and dies where examined using TaeguTec cutting tools. From milling to drilling, industry leaders from China were treated to the speed and efficiency of TaeguTec tools.
“I can see how this will apply to our (production) line. Now we have to see how these tools produce to our real world challenges,” noted a popular toy producer. “From the looks of things, I think (TaeguTec cutting tools) will work well for us.”