Taiwan's Mold and Die Industry Production up 2.2% in Q2
2013/10/04 | By Steve ChuangDriven primarily by domestic demand, Taiwan's mold and die industry saw its output value grow 2.2% year-on-year (YoY) or 10.5% quarter-on-quarter (QoQ) in the second quarter of this year, to NT$13.7 billion, according to the latest report from the Metal Industries Research & Development Centre (MIRDC).
The main reason why the industry managed to grow despite the unstable global economy was an increase in domestic sales to NT$10.4 billion during the quarter, up 4% YoY and 14.3% QoQ. Exports and imports during the quarter totaled NT$4.6 billion and NT$1.3 billion, respectively, representing declines of 7.1% and 4.2%, respectively, from a year earlier.
Industry Trend
An exciting trend is the emergence of 3D printing (or additive manufacturing), which is increasingly regarded as a next-generation technology that can revolutionize traditional mold and die production.
To ride this trend, the MIRDC reports, the Industrial Technology Research Institute (ITRI), a government-funded R&D body, set up Taiwan's first additive manufacturing lab early this year. Since then, ITRI has helped several local companies enter the production of molds, dies, and medical devices using this new technology.
One example cited by the MIRDC is a medical instrument maker that was set up with ITRI's technological support in southern Taiwan, where medical instrument manufacturing is clustered, and later used 3D printing to turn out an artificial hip joint which was successfully implanted in a 10-year-old golden retriever.
To further promote additive manufacturing and nourish the development of this emerging industry, ITRI has been developing related technologies, including laser and precision testing, designed to help more Taiwanese companies develop the field and form an integrated supply chain in the south. This is expected to boost the growth of Taiwan's mold and die production.
Also inspired by the emergence of 3D printing, the Plastic Industry Development Center (PIDC), a semi-governmental institute with a focus on plastic-related manufacturing technologies, used 3D printing to work out a speedy plastic molding technology and high-polymer composite materials. The MIRDC indicates that speedy molding technology coupled with the composite materials developed by the PIDC can be applied in ordinary plastic molding machines to churn out products directly. This process can be used to produce plastic molds 70% faster and 60% more economically than the use of conventional metal molds and dies.
Korea Stymied Antidumping Charges
Since Koreans are among the top competitors of Taiwan's mold and die manufacturers in the global market, Korea's current problems with antidumping charges globally could be the good news for the island.
The MIRDC reports that the U.S. International Trade Commission has decided to impose antidumping duties on washing machines made by Samsung, LG, and Daewoo Electronics this year, and this will have a severe impact on exports of Korean washing machine worth up to US$1 billion per year. The U.S. Department of Commerce has also launched an antidumping investigation into steel pipes imported from Korea for well-drilling.
Korea has also been hit by antidumping charges in Mexico, South Africa, Indonesia, and Malaysia. Mexico and South Africa have already imposed antidumping penalties on cold-rolled steel plates and coated paper, respectively, imported from Korea, while Indonesia and Malaysia have been investigating imports of Korean cold-rolled steel coils and steel wires and rods, respectively.
The MIRDC reports that according to official Korean statistics, Korea was involved in a total of 129 antidumping cases globally at the end of this June. Over 70% of the Korean products subject to trade restrictions in overseas markets were chemical and steel products, which are major contributors to the country's exports.
Taiwanese companies should step up development in the markets where their Korean rivals may lose out because of antidumping duties.
Lackluster 1st-half Performance
Despite their growth in the second quarter, Taiwan's mold and die industry experienced a decline in exports in the first half of the year. The MIRDC indicates that the industry's export value in the first five months shrank about 10% YoY.
The MIRDC attributed the export drop to market recession in China, Europe, and the U.S.--the industry's major export destinations. At the same time, the encroachment of Chinese rivals in such emerging markets as Mexico, Thailand, and India also hurt Taiwan's mold and die industry, whose overall exports to those countries plummeted by more than 50%.
The MIRDC urges the industry to upgrade to high-value-added production and explore emerging markets more aggressively. It also suggests that the government forge more free-trade agreements with other countries.
Output of Unit: NT$1 billion | ||||||||
Period | 2011 | Q3, 2012 | Q4, 2012 | Q1, 2013 | Q2, 2013 | 2013 | ||
Value | Value | Value | Value | Value | YoY Growth | Value | YoY Growth | |
Output | 46.8 | 13.3 | 13.5 | 10.8 | 13.7 | 2.2% | 50.0 | 6.8% |
Imports | 5.5 | 1.6 | 1.5 | 1.2 | 1.3 | -4.2% | 5.6 | 1.8% |
Exports | 19.8 | 4.7 | 4.8 | 4.6 | 4.6 | -7.1% | 21.5 | 8.6% |
Domestic Market Demand | 32.5 | 10.2 | 10.2 | 7.4 | 10.4 | 4.4% | 34.1 | 4.9% |
Source: Metal Industries Research & Development Centre