High Demand For Foundry Industry Products

Posted by Vico Casting Export Company Limited at 30/12/2019

Currently, the demand for foundry industry products is high. However, in order to expand these markets, casting products must increase in quality, enterprises must increase their capacity. Mr. Pham Anh Tuan, Deputy Director of Heavy Industry Department - Ministry of Industry and Trade, said that in order for casting products to be able to compete with similar products in the region, right now, it is necessary to gradually solve the constraints of the industry.

   

Thanks to supportive policies of the State to the industry, Vietnam's casting technology field has recently achieved very positive development steps. Molded products have been exported to Southeast Asian countries and some other countries. Products are mostly exported in two forms: single casting products (1,424 million USD in 2010); products in equipment and machinery for export such as diesel engines (35-40 million USD in 2010), in many other types of tools such as pumps of all kinds, harvesters... We can also exporting cast iron parts, wear-resistant and heat-resistant steel for the cement industry, chain belts for the metallurgical industry...

 However, according to experts, domestic casting products have only partially satisfied the essential needs of the domestic market, mainly gray cast iron, cast steel for the mechanical manufacturing industry, corrosion-proof, abrasion-proof cast iron alloy  for the mining and construction industries, while most of them have to be imported as synchronous assembly parts. Therefore, in the past time, Vietnam has had a trade deficit in many mechanical products and the domestic molded market has been manipulated by foreign countries, and the market share of domestic enterprises has gradually decreased.

According to Mr. Pham Anh Tuan, ingot creation, a very important stage in the mechanical industry, production facilities still mainly use sand casting technology which has low casting quality, high scrap rate (up to 30%), high amount of residual processing. There is no experience in casting high-precision products in the country, and high-quality and durable steel grades have not been cast. The technology of creating ingots by plastic deformation of metal in hot state (rolling, forging, stamping) is weak and has not met market's requirements. Heat treatment surface quality treatment is not complete which affects the quality of finished products. Metalworking by cutting still uses obsolete and inaccurate machines and tools, outdated technology, and low automation level.

Also, Mr. Tuan indicates that the industry still lacks factories with modern technology as the center for specialization and cooperation, an important requirement of mechanical production and supporting industry.

Meanwhile, according to experts, the casting products has a large market. The demand for casting products for domestic industries from 2010 to 2020 focuses on the mechanical engineering industry with the demand of about 689,000 tons by 2020 for mechanical engineering of agriculture, forestry, fishery, food processing, machine tools, construction machines...; the transportation industry with 817,000 tons of castings by 2020 for the production and assembly of cars, motorcycles, trains... Other industries such as electricity, metallurgy, mining, cement, ships, water supply... also need a lot of detailed casting products. It is predicted that domestic demand for casting products will be about 1,927,000 tons in 2020 and 2,500,000 tons in 2025. In the next 5-10 years, cast iron parts and special features high complexity precision aluminum casting alloy serving the transportation industry, the mechanical industry is very promising.

Casting products also have a large export market. General Director of Saigon Industry Corporation, Mr. Nguyen Huu Tho, said that for the Japanese and Korean markets alone, hundreds of thousands of tons of casting products can be imported every year if they are of good quality. The North American and American markets are also one of the major markets for casting metal products. Despite being the world's largest producer of cast metal products, this United States industry still relies heavily on imports to meet demand, each year the US imports about 20% of its demand for cast iron. However, the export market requires high technical requirements for casting products, and the billets for the mechanical engineering industry have high requirements for quality, surfaces, and high accuracy in geometric dimensions, defectless, ensuring many chemical components, physical and mechanical properties...

    In order to develop the foundry industry, Mr. Pham Ba Kiem, Institute of Mining and Metallurgy Science, Technology, indicates that it is important to build a system of casting enterprises to serve the whole industry, or for a particular industry towards a high specialization to concentrate equipment, technology, human and financial resources; at the same time make small enterprises as support for large enterprises. In particular, focus on investing in equipment and technology in a synchronous manner to ensure product quality, low cost, and environmental protection. Besides, it is also advisable to build a system of research institutes to capture economic and technical information, research, and apply advanced technologies in order to manufacture high-quality and cost-effective casting products. Only then will Vietnamese casting products be able to compete with similar products in the region by 2015.

According to statistics, in 2010, there were about 390 enterprises, casting establishments and products related to the foundry industry in 43 provinces and cities with an output of more than 92,000 tons of cast iron, nearly 6,000 tons of copper, more than 1.2 million tons of cast steel… Casting enterprises and establishments are concentrated in Hanoi, Ho Chi Minh City, Thai Nguyen, Hai Phong, Quang Ninh, Hai Duong, Dong Nai, and Binh Duong.

Recently, in Ho Chi Minh City, an investment project in the Southern key mechanical products factory of Saigon Industry Corporation has just been approved by Ho Chi Minh City for construction on an area of 30 hectares in Binh Chanh district with an investment capital of 2,800 billion VND. The factory will produce and create metal ingots by high quality casting, forging and stamping methods, equivalent to developed countries such as Korea, Taiwan, etc., supplying to domestic and export mechanical processing units. , contributing to reducing the import of metal ingots from abroad, ensuring the autonomy in production and business for domestic mechanical enterprises. The factory is completing procedures to enjoy preferential policies for key mechanical products and key mechanical product manufacturing investment projects.

Source: VEN

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