Automotive Mold Industry in Eastern China Gose Back to 1950s

2008/01/30 | By CENS

The automotive mold or tooling industry in eastern China is centered around Shanghai, Zhejiang Province, and Jiangsu Province, with the emergence of such industry in Shanghai dating back to the 1950s and in the latter two locations to the 1980s.

Shanghai

The automotive tooling sector in Shanghai features significantly large working scale, high technological level, and is capable of turning out a wide variety of products. The sector consists of 1,500 enterprises employing some 70,000 workers who generate about US$1.5 billion in products annually, with average annual growth exceeding 20% in recent years. The output value is expected to hit US$2.5 billion and export value US$130 million by 2010.

The Shanghai mold industry mainly serves the IT (information technology) and automotive parts sectors, with the latter turning out toolings to produce auto-body parts, large castings, and precision stampings. The Shanghai area now has nearly 70 enterprises making toolings for stamped auto parts, plastic parts, and castings, with annual output value totaling some US$250 million. The major players include Yesun (Shanghai) Mould Co., Ltd., Shanghai Yifeng Automotive Die Making Co., Ltd., Shanghai Ogihara Dies Co.,Ltd., a joint venture, Lianheng Industry (Shanghai) Co.,Ltd., a Taiwanese-invested firm, all boasting annual output value exceeding US$6.5 million.

Degree of precision of tooling makers in Eastern China keeps rising. (photo courtesy of Zhejiang Huangyan Yalong Science & Technology Development Co., Ltd.)

Zhejiang Province

Zhejiang's mold industry centers on Ningbo and Taizhou cities, which jointly boast over 4,000 mold makers, including 2,000 dedicated ones, with employment nearing 100,000 and output value US$1 billion.

Annual output value of Ningbo's mold industry tops US$650 million, with major production bases including Ninghai, Yuyao, Cixi, and Jinzhou, mainly for plastic mold; Beilun, for cast mold; and Xiangshan and Zhoushan, for cast and stamped molds.

Most mold enterprises in Taizhou are located in Huangyian and Luqiao, mainly for plastic molds, with annual output value of Taizhou's mold industry topping US$350 million.

Zhejiang's mold industry boasts a number of major features:

1. Almost all mold makers in the province are privately-owned, boasting flexible operation and rapid development;

2. The mold enterprises have formed into industiral clusters, capable of exerting collective strength;

3. The mold industry has been diversifying and turning out products with higher added value.

4. A number of quality enterprises have come into being.

Zhejiang's mold industry has been growing annually at 15-20% in recent years, higher than the national average , and its export volume has also been growing rapidly, with major outlets in the U.S., Europe, Southeast Asia, the Middle East, Japan, Russia, Hong Kong, and Taiwan.

Automotive tooling sector in Eastern China grows rapidly. (photo courtesy of Taizhou Huangyan Wanhao Mould Factor)

Jiangsu Province

Suzhou is the major mold-production base in Jiangsu Province, boasting over 1,000 enterprises in the line, including many foreign-owned ones or joint ventures, with annual output value of US$750 million. Major products inlcue cast molds and dies for engines and axles.

The Chinese mold industry has been growing annually at 15% in recent years. Despite a saturated low-end market, the development potential for technology-intensive molds, including precision and sophisticate stamping molds, is still very large.