International Mold Supply Chain Further Leans Towards China Mold Companies

When compared to the past, the technological level of the Chinese mold industry has been greatly improved, but the proportions of high, medium and low-end molds produced by Chinese manufacturers are extremely imbalanced, which severely hampers the development of the Chinese mold industry. Over the past few years, tremendous changes have taken place in the industrial structure as well as the system of the Chinese mold industry, which are mainly represented by: medium- & high-level molds, large sizes, precision, complexity and long lifecycle, but the self-sufficiency rate of medium- & high-end molds falls below 60%, due to the fact that China has an enormous demand for medium- and low-level molds. It is easy to see the irrationality lying in this situation.

The industry has pointed out that the proportions of high, medium and low-level molds produced by Chinese manufacturers are extremely imbalanced, which severely hampers the development of the Chinese mold industry. The pace of restructuring needs to be quickened urgently with emphasis on development of the high-end market segment, so as to keep pace with the international market.

How to keep pace with the international market? The mold industry in China needs to speed up restructuring, while at the same time making efforts to improve technological level.

It is mainly reflected in the following aspects: i. Restraints, such as mold steel; ii. The level of standardization needs further improvement; iii. Top-level mold talents need to be cultivated desperately; iv. Quicken the pace of mold product restructuring; v. Increase investment to enhance innovation capability; vi. Promote consolidation and restructuring among mold enterprises; vii. Further deepen the exploration of overseas market.

The downstream suppliers, especially the automotive industry, have a high degree of dependence on importation when the key and core molds are concerned. As a result, a host of key and core injection molded parts that OEM products need are also supplied by these world-renowned mold enterprises.

In recent years, Chinese mold companies have continuously improved mold technologies and products. Therefore, some plastic molds and injection molded parts start to be distributed internationally, have successfully made it to the supply chain system of some high-end industries and even replaced some imported products, dependence on importation is thus eliminated. However, it is undeniable that, the companies that have got into international high-end market are few in number.

In the Chinese mold industry, along with the improvement of technological level and gradual increase of product lines, some international OEM industries are now further leaning towards Chinese companies, which presents not only an opportunity, but also a challenge. It is believed that by 2015, the mold self-sufficiency rate in the Chinese market will reach 85%, among which the self-sufficiency rate of high-end molds will witness a remarkable increase.

According to experts, in addition to continuous improvement of productivity, the Chinese mold industry needs to pay more attention to internal restructuring, as well as technological advancement. The focus is mainly on realization of a more specialized enterprise structure; a product structure that is oriented towards higher end molds; improvement towards the import & export structure; molding analysis & structural improvement of medium- & high-end automotive panels; application of multifunctional composite mold, combined machining technology and laser technology in design and manufacturing of molds; as well as the development orientation towards high-speed cutting, ultra-precision processing, polishing technology and informationization, etc.

With the thorough transformation of the machine tool industry, the Chinese mold industry is experiencing technological innovation and product upgrade, while also proactively exploring the international market. In the competition with international competitors, the Chinese mold industry is making the most of its strengths, in an attempt to secure a place in international market. So, what advantages does Chinese mold industry have over the international mold industry?

Advantage 1: Strong national policy support should not be ignored;

Advantage 2: Gradual improvement of infrastructure creates possibilities for the ever increasing market demand;

Advantage 3: Transfer of world mold industry center to China, as well as the wide application of e-commerce will create extraordinary business opportunities for the Chinese mold industry;

Advantage 4: Compared with European and American countries, the low labor and material costs will make China the center of attention under the current circumstances that there’s an urgent need to bring down cost in the international market.

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