Featured Image

International News From the Field: China

China remains the world’s manufacturing megalith, accounting for almost 30% of the world’s manufacturing output. The die and mold industry plays a crucial role as a major upstream component of the industry, and opportunities in that space continue to grow.
Apr 04, 2022

China remains the world’s manufacturing megalith, where the die and mold industry plays a crucial role in the country’s manufacturing. Over the past two decades, on average, the industry grew by more than 10% per year. In 2021 China’s GDP grew to $17.72 trillion, an increase of 8.1% YOY. Manufacturing accounted for 27.4% of this at almost $5 trillion and represents almost 30% of the world’s manufacturing output. The die and mold industry is a major upstream component of manufacturing output, and opportunities in that space continue to grow. 

  • There are over 30,000 die and mold companies in China. More than 80% of their business comes from the automotive, communications, electronics, appliance, and medical sectors. The rapid growth of those sectors resulted in a total output of $43.41 billion for die and mold in 2020.

  • According to the China Die & Mold Industry Association (CDMIA), plastic injection molds and automotive molds are the main products in the mold industry. Plastic mold output is 45% of the total output, stamping-punching molds represent 37%, casting molds 9%, and other molds 9%.  

  • By application, automotive (34%), electronics (28%), and IT (12%) are the top three consumption segments of the total output for dies and molds. The appliance segment consumes 9%, OA 4%, semi-conductor 4%, and other molds 9%.

  • Dies and molds are a critical industrial upstream product. China's current mold industry is developing rapidly based on its industry added value. It is estimated that the output of China’s die and molds market will reach about $54 billion by 2026, with an average CAGR of almost 4%.

  • Some of the major automotive die and mold companies are:

o   FAW Molds in Jilin province (Northeast China) 

o   Tianjin Motor Dies in Tianjin (North China) 

o   Greatoo Intelligent in Guangdong province (South China) 

o   Himile Mechanical Science & Technology in Shandong province (East China) 

o   Rayhoo Motor Dies in Anhui province (East China) 

o   BYD (Build Your Dream) Molds in Guangdong province (South China)

o   Chengfei Integration Technology in Sichuan province (Southwest China) 

  • Lightweight automotive components is a trend and is accelerating the development of technologies for plastic injection molds, stamping molds, and press-casting molds. Many companies are planning investments, such as BYD Molds, who will invest $47 million to build a stamping mold production center for EV parts at their Shaoguan facility in Guangdong province over the next two years.

 For more information, please contact Fred Qian at fredqian@AMTchina.org.

PicturePicture
Author
Fred Qian
General Manager - Shanghai Technology and Service Center of AMT
Recent international News
China’s manufacturing PMI reached 50.1 in September, and foreign and domestic investments are high, particularly in automotive – signs the country is recovering from COVID and its recent energy shortage. For more industry intel and other tidbits, read on.
China remains the world leader in wind power generation, and the country only looks to grow in this sector. But as the saying goes: with great power comes ... a great need for large bearings. Read on to learn how manufacturers are responding.
China is investing billions to develop renewable energy sources. Their efforts have produced big numbers in offshore wind power – over 45% of the global total. For more details on this sector's expansion and the opportunities that come with it, read on.
Despite springtime hiccups with an omicron surge, China's economy should stabilize in 2022 with a new policy package of significant investments, including in automotive, energy infrastructure, and home appliances. For more on this package, read on.
China’s zero tolerance toward COVID continues to take its toll on the local economy, particularly in the automotive sector. This week we take a closer look at the local automotive supply chain data that has global economic implications.
Similar News
undefined
International
By Arun Mahajan | Nov 15, 2022

India's manufacturing and services PMI numbers remain strong as employment activity rose to a 33-month high. Big investments in defense, renewable energy, semiconductors, and automotive continue. For more industry intel and other tidbits, read on.

5 min
undefined
International
By Hubert Sawicki | Nov 09, 2022

The war in Ukraine continues to impact global markets. EU countries closely coordinate actions to tackle rising prices and supply scarcity. Could this produce economic momentum for Central and Eastern Europe? For more updates and other tidbits, read on.

7 min
undefined
International
By Fred Qian | Nov 01, 2022

China’s manufacturing PMI reached 50.1 in September, and foreign and domestic investments are high, particularly in automotive – signs the country is recovering from COVID and its recent energy shortage. For more industry intel and other tidbits, read on.

5 min