Global Mold Production Value and the Rise of China's Private Capital

In the United States, the mold industry is considered to be "the cornerstone of industry." In Japan, the mold industry is even more respected as "the original motive force for entering an affluent society." In China, the State Council adopted the “Restructuring and Revitalization Plan for the Equipment Manufacturing Industry” and also focused on the technical level of molds and their manufacturing equipment. What kind of mold, in the end, what kind of charm it enters the high-level position in the industrial field? Analyzed by Luo Baihui, head of the International Die and Hardware Plastics Industry Suppliers Association, molds refer to the manufacturing equipment made of plastic, rubber, metal, powder ink, glass and other mold materials through processing equipment. It belongs to intermediate products in the production process. However, due to its advantages of fewer processes, high material utilization, low energy consumption, easy production, etc., it is widely used in the automotive, energy, machinery, electronics, information, aerospace industry and daily life. For example, we are familiar with the printer shell products called OA equipment molds, in addition to medical, consumer electronics and other industries used mold products.

The global mold output value is 100 billion US dollars. According to Luo Baihui, the director of the International Die and Hardware & Plastic Industry Suppliers Association, the world mold industry has been steadily rising since 2001, with an average growth rate of more than 5%. By 2008, the market size will be close to 78.9 billion. USD, it is estimated that the output value of the mold industry in 2011 will reach 100 billion US dollars. Although China's mold industry started earlier, it is still considered as a subsidiary industry and it is developing slowly. Its sales scale is not as good as foreign markets. However, in terms of development speed, China's growth rate is much higher than the overall speed of the world mold industry. From 2001 to the financial crisis, there was basically double-digit growth. Many mold companies are relatively small in scale, but the scale effect is gradually emerging. At present, major large-scale mold enterprises have gathered in South China in East China. The provinces with the fastest development and the most concentrated mold production are Guangdong and Zhejiang. The output of the mold has accounted for more than 60% of the national total. In 2008, die production in East China and South China respectively reached 4.984 million sets and 3.1029 million sets, which accounted for 39% and 24% of the total output in the seven major regions. The total output accounted for 63% of the total output in the country. In particular, the OA equipment industry has developed rapidly and is expected to reach an annual growth rate of 25% to 30%.

Car molds hit the national brand In 2010, China's auto production and sales both exceeded 18 million vehicles, reaching 18,264,700 cars and 18,016,900 cars, setting a new record for global auto production and sales, and being the world’s largest producer and seller of automobiles. According to Luo Baihui, head of the International Die & Mould and Plastic Industry Suppliers Association, such a huge demand market will significantly drive the rapid development of the mold industry that provides equipment for the auto parts industry. The annual production capacity of the domestic automobile stamping die industry is only 8 billion to 1 billion yuan, while the demand for molds in the Chinese auto market has reached more than 20 billion yuan. The rapid development of China's automobile industry puts forward higher and higher requirements for the mold industry, and it also provides a huge impetus for its development. With the further adjustment of policies, the growth rate of the automobile mold industry will tend to be flat in 2011, market competition will further intensify, and auto mold enterprises will face greater opportunities and challenges.

The rapid development of China's entire vehicle has directly stimulated the rise of the automotive aftermarket. The development of China's auto parts industry has begun to become the focus of attention. Especially in some developed areas in Europe and America, China’s auto parts industry is called In the gold industry, the global automotive center has subsequently shifted to China, which has brought great opportunities and competition to the Chinese auto aftermarket. As one of the pillar industries of the national economy, China's auto parts industry has a long way to go in the future. In the face of huge market development potential, after years of development, there are corresponding giants appearing in various product areas of domestic auto parts companies, such as Fast's transmissions; filters of Global, Leopard King, and Fleetguard; Lutheran , Kylin, Baiyun's brake pads products all enjoy a certain reputation in the international market and gain corresponding market share. In addition, many domestic auto parts companies that specialize in foreign trade are not to be underestimated in the international market. The advantages of multinational auto parts and components companies entering the Chinese market have so far led to the disappearance of only local auto parts companies in terms of quality and technology. Local auto parts companies have made product quality and core technology the main breakthrough in their development. Core direction. In addition, the brand awareness of domestic auto parts companies has also been greatly improved. The propaganda and promotion tactics and multinational auto parts and components makers are irrespective of whether they are involved or not. This has brought a lot of pressure on the development of multinational auto parts and components companies in China.

Many local auto parts companies have stated that they will enter the international market in the future and develop national auto parts companies. At present, some auto parts manufacturers in China are eager to open the international market, and the quoted prices are far lower than the average price in the international market. Actually, this is not a wise move: once one's own profit rate is very low, it is not conducive to the company’s Long-term development; Secondly, in the eyes of some big companies, it is not the lower the price, the better. Some big companies think that if a product does not have a reasonable profit rate, its product quality may be greatly reduced. What is even more serious is that domestic enterprises that produce export products compete with each other in price competition and may cause foreign anti-dumping complaints. Therefore, when domestic manufacturers offer foreign companies, they must first master the international market and avoid the unfavorable consequences caused by unquote prices.

Luo Baihui said that domestic auto parts companies need to develop the international market on the basis of maintaining a good market order. Only in this way can we achieve long-term development in the international market to compete with foreign suppliers of parts and components, but also to maintain a good image of Chinese auto parts companies in the international market, and to promote the development of China's auto parts products and technology.

In recent years, China's mold industry has achieved rapid development. The structure of China's mold products has further tended to be reasonable. The share of large-scale, sophisticated, complex and long-life molds with high technology has increased from 20% to 30%. In 2010, China's mold sales reached 112 billion yuan. yuan. At the same time, the equipment level of China's auto mold enterprises has been continuously improved, the level of technology has been continuously improved, the production capacity has been strengthened, and the auto mold industry has shown a new trend of development.

Li Jianhua, vice chairman of the China Mould and Die Association, and Dongfeng Automobile Mold Co., Ltd. general manager, said in analyzing the Chinese automotive mold market that China's mold industry has entered a period of rapid development. In the past 10 years, the mold industry has been growing at an annual rate of 15%. development of. The huge potential of the Chinese automotive market has brought more room for the development of automotive molds. In 2005, the national policy on the characteristics of vehicles (restricted imports, local production of key parts) promulgated by the State has also increased the opportunity for mold enterprises to produce molds for exterior car covers. Li Jianhua pointed out that in the context of this industry, how to seize the opportunity and respond to the market depends on which company is stronger in technological strength, better in product quality, and higher in competitiveness.

Li Jianhua said that in recent years, Dongfeng Automobile Mould Company has intensified efforts in strengthening technology, quality, cost, service, etc., insisting on technological progress and process improvement, increasing investment in R&D, and relying on scientific and technological progress and technological innovation. Improve the manufacturing level of the company. The application of new technologies and new technologies has greatly shortened the processing time and improved the production efficiency and processing quality. They also continue to introduce advanced design and programming software to enhance their knowledge of NC knowledge training. They have all achieved 3D design, NC programming and CNC machining.

The “Tianhao” sedan project undertaken by Dongfeng Auto Mould Co., Ltd. is the first joint venture project undertaken by Dongfeng and Nissan after the joint venture. During the implementation of the project, the company's technical department and other departments actively introduced and borrowed Nissan's experience in the design and manufacture of mold gages. It boldly adopted a series of new processes and structures including mold chrome plating and floating pressure materials, and used the entire process for the first time. The three-dimensional modeling guides the design and processing; the inspection tool has developed new functions such as lap joint matching detection and assembly welding assembly matching detection. While absorbing Nissan's advanced technology, it also fully utilized its own design, numerical control manufacturing, on-line detection, and other advantages, greatly reducing the cost of tooling. The bonnet inner and outer panel molds are the first high-end passenger car exterior parts designed and manufactured in China. The success of this project has changed the history of China's high-end passenger vehicle exterior parts mold tooling all imported, and upgraded the mold company's mold inspection tool as a whole. Design and manufacturing level and corporate reputation. Many car manufacturers have also come here, ordering Dongfeng Auto Mould Company's mold inspection tools. Recently, Dongfeng Automobile Mold Company received a set of high-tech mold export orders to the United States.

Dongfeng Auto Mould Co., Ltd. did not hesitate to purchase 5 sets of high-speed milling and quasi-high-speed milling from abroad. After the operation, the processing efficiency has doubled, the output speed has been significantly accelerated, and the product quality has also been greatly improved. In recent years, Nissan and Honda passenger car engine cover parts assemblies manufactured by Dongfeng Motor Mould Company have received high praise from foreign experts. In 2005, the Shenlong b53 project undertaken by the company was fully recognized by the French experts in the first round of sample delivery. The b53 sedan door inner panel mold started the Dongfeng mold brand, making Dongfeng Automobile Mold Company enter the car mold market.

In predicting the future development trend of China's auto mold industry, Li Jianhua said that in general, China's mold with low technological content has been oversupply, and there is a narrow market for profit; while high- and medium-grade molds with high technical shots are far from adapting to the economy. The development needs, precision, complex stamping dies, car cover molds and other high-end molds still have great room for development. The future development direction of China Auto Mould Co., Ltd. should focus on the adjustment and positioning of the product structure, further improve the manufacturing technology level of the mold, and occupy the high-end mold market with complex structure, high precision and high technology content.

With the further adjustment of policies, the growth rate of the automobile mold industry will tend to be flat in 2011, market competition will further intensify, and auto mold enterprises will face greater opportunities and challenges. According to the survey of the International Mould and Hardware and Plastics Industry Suppliers Association, at present, 50% of its member companies face the difficult loan difficulties due to tight monetary policy. According to Luo Baihui, secretary-general of the association, the impact of monetary policy on the manufacturing industry is mainly reflected in the tightening of monetary policy, which makes it more difficult for bank loans; under relatively tight monetary policy, the cost of financing for enterprises increases; inflationary pressures will increase raw material prices. . Therefore, the tightened monetary policy has caused the total amount of loans to shrink and interest rates to rise, which will exert pressure on manufacturing companies, especially those with thin profits. The impact of tightening monetary policy on manufacturing is not entirely negative. It may indirectly promote the transformation and upgrading of the automotive mold industry. Luo Baihui believes that an excessively loose monetary policy is not conducive to the rational allocation of resources and is not conducive to transformation and upgrading. Relatively tight monetary policy will indirectly promote the merger and reorganization of the automotive mold industry and manufacturing companies. In addition, strategic emerging industries that are in line with the development direction, sustainable, and conducive to transformation and upgrading will receive special attention in such monetary and fiscal policy environment. For example, the financial investment in new energy vehicles will increase. The central bank and the China Banking Regulatory Commission will also support the development of this industry through credit.

The rise of China's OA equipment mold industry China has become a global producer of office equipment and office consumables, and the OA equipment mold industry has also developed rapidly. More than 60% of the world's copying equipment and 40% of the image printing equipment are manufactured in China; more than 80% of the world's ribbons, more than 50% of compatible cartridges, more than 30% of remanufactured cartridges, and 11% of laser toner cartridges are manufactured in China . Luo Baihui, head of the International Mould and Hardware & Plastics Industry Suppliers Association, said that due to the regional nature of the supply of mold companies, manufacturers of these equipment are generally supplied locally. The purchase of plastic molds and injection molding products in China has greatly promoted China's plastic molds. Industry, especially the development of precision plastic mold industry, the average annual growth rate of China's mold industry during the "fifteen" is 17.1%, while the OA equipment appearance parts, structural parts and other parts of the mold and plastic molding products industry average annual growth rate of 30% or more The industry has developed rapidly. By 2008, the output of OA equipment in China will reach more than 3 million sets.

Rapid product replacement, the emergence of plastic steel, plastic glass trend, and promote the rapid development of integrated machine technology, with printing, copying, fax and other multi-functional four-bit machine, five-one machine is gradually becoming OA equipment market mainstream. Due to the integration of many functions, the one-machine structure is more compact and the precision requirements of its plastic parts are higher, which promotes the development of precision plastic molds. At the same time, due to the development of material technology, plastics have gradually approached hardware materials and glass materials in various aspects such as hardness, high temperature resistance, transparency, etc. At the same time, the inexpensive properties of lightweight, easy processing, and mass reproduction make them It has become the material of choice for many components in the current OA equipment industry. At present, the proportion of plastic structural parts and appearance parts in OA equipment has accounted for 55%, and it has gradually increased, which has effectively promoted the development of the precision plastic mold industry.

Private mold companies favor capital operation From the perspective of the development of China's mold industry, molds are suitable for the development of specialization and collectivization. Mold companies must take the road of integration when conditions are ripe to be an inevitable development trend. Li Jianhua believes that in order to meet the needs of enterprise development and market competition, China's auto mold companies should also actively seek international cooperation and try to move from a simple production plant to a capital-operating enterprise. In response, Luo Baihui, secretary-general of the International Mould and Hardware and Plastic Industry Suppliers Association, said that from the perspective of recent developments, private enterprises have developed rapidly, and foreign-funded enterprises have also begun to enter China, of which Japanese-funded enterprises are the most active. Nowadays, more and more companies are producing car cover molds. It is estimated that there are already hundreds of companies in the country. A large number of private auto mold manufacturing enterprises have become a fresh force that has emerged as a result of their large investment, high starting point, and clear service targets.

In addition to individual companies developing their own production capabilities, the ability to unite, coordinate, and collaborate among enterprises has also been greatly improved in recent years. Some regions have formed prototypes of automobile cover mold assembly production bases. These agglomeration production bases have formed automobiles. Mold enterprise groups and professional close supply chain. All these are very helpful to the development of our capabilities. In addition to Shanghai and Botou City, Hebei Province, where a large number of automobile-covered mold manufacturing companies are concentrated, Shiyan City, Tianjin City and surrounding areas, Harbin, Chengdu and other places have relatively concentrated on a number of automotive panel mold production. The company has formed a number of collaborative relationships to improve overall capabilities.

With the expansion of the size of some mold “leading” companies and the increase in organization, coordination capacity and technical strength, the ability of individual mold companies to undertake vehicle molds has been formed, and even a whole vehicle mold of multiple models can be accepted within one year. At the same time, the industry has initially formed a specialized division of labor and group management, thereby enhancing the overall strength of the mold companies. According to Luo Baihui, head of the International Die and Metals and Plastics Industry Suppliers Association, more and more companies, especially those in the rapidly developing fields of technology, environmental protection, and electronic technology, have chosen to obtain rapid growth through capital market financing. However, in the mold industry, there are only a few die companies such as Anhui Tongling Sanjia Mould, Guangdong Big Wheel Mould, Chengfei Integration, Easy Molding Technology, and Changhong Technology. And these several are divided into different mold industries, the main products of Sanjia are integrated circuit packaging molds, chemical materials and plastics hetero-plastic extrusion molds, and wheel molds and Chengfei integration are professional companies that produce automotive molds. Technology is a leading enterprise in the sub-industry that specializes in the production of OA equipment. It is the largest OA equipment manufacturer in China and the first listed OA manufacturer.

Shenzhen Changhong Mould Technology Co., Ltd. was established in 2001. After nearly 10 years of development, Changhong Technology has expanded from the single manufacturing to the simultaneous development of services to the upstream enterprises, from the development of small domestic enterprises to participate in the development of international giants of manufacturing giants. From the advanced manufacturers of OA equipment to high-end medical consumable products, Changhong Technology’s excellent road also represents the microcosm of China’s rising mold industry.

Changhong Technology started from Shenzhen and currently employs nearly 1,000 people and more than 80 R&D personnel, accounting for more than 8% of the total number of employees. The company is one of the leading enterprises specializing in R&D, design, manufacturing, injection molding and sales of precision non-metal product molds. Its main products include office automation equipment (OA) structure parts such as copiers and printers, appearance molds and injection molding.

Under the guidance of the concept of “Continuous Change, Beyond Self”, Changhong Technology always leads the industry with its innovative advantages. The company is not only a domestic company that has solved the technical problem of “shortening the mold cycle” earlier, but also realizes the operation of “standardized processes created by non-standard industries”, and has successfully integrated three softwares through comprehensive research on CAD, CAE, and CAM software. The design technology simplifies the mold making process and makes a great contribution to the development of the precision plastic mold R&D and manufacturing in China. And obtained the national high-tech enterprise certification, the industry was the first to be rated as China's key injection molding mold key enterprises. The company has strong competitive advantages in terms of technology, quality, standardization, complete product solutions and customer resources.

In addition to independent innovation, the company has established long-term exchanges and cooperation in technology research and development with famous universities such as Huazhong University of Science and Technology and Guangdong University of Technology, which has enhanced the company's scientific and technological innovation capabilities, knowledge reserves and research and development capabilities.

At present, the company has obtained 10 patents and one computer software copyright. There are a total of 23 patents declared and accepted, including 9 invention patents.

Since its inception, the company has been devoting itself to the research, design, manufacture, molding, and product assembly of precision plastic molds for exterior parts and structural parts of OA equipment, mainly for the world-famous manufacturers of OA equipment such as Konica Minolta, Brothers. Provide precision plastic molds and molding products. With the advancement of the company's position in the industry in recent years, Changhong has begun to develop new major customers, such as Canon, Kyocera Mita, and other large OA equipment manufacturers. Now it has entered the stage of small-batch supply testing, waiting for customers to complete the company's manufacturing system. After product certification, you can start mass delivery.

In addition, the company began production of high-end medical consumables in 2007 and has passed US FDA certification. Thanks to its profound industry foundation in the mold industry, it has achieved a leading domestic technology level in the production process of gene storage plates and molecular sieves in just a few years. It has succeeded in establishing with the world’s second largest medical supplies equipment giants Thermo Fisher and Bole. The partnership has become Thermo Fisher's largest supplier of genetic storage panels in Asia. Changhong Technology has rapidly risen in the medical mold industry with an annual growth rate of 161%.

In the tenth year of its establishment in December 2010, Changhong Technology successfully entered the capital market and became a member of GEM. For Chang Hong, who urgently needs funds to seek expansion in scale, listing is undoubtedly the best way for companies to move quickly and march quickly. Some people have done this metaphor: The company is like a human body. Fixed assets are like human skeletons. They are basic frameworks that support the development of enterprises. Liquid assets are like the blood of people and they are vital sources of vitality. Under the background of the rapid development of the Chinese market, the capital market platform has been continuously improved, and we are also looking forward to seeing more and more growing companies achieve high-speed development, thus stimulating the country's overall strength to rise again.