Forecast


by Zhigang Lu, Zeheng Zhou, Tsinghua University, Beijing, China; Investment Casting Branch of China Foundry Association Unlike other investment casters around the world, casters


in China employ two different shellbuilding technologies which supply vastly different markets. One technology– used exclusively in China until the intro-


duction of colloidal silica in the early 1990s– uses sodium silicate binders in shellbuilding. Castings in carbon steel, low alloy steel and ductile iron are produced mainly for domestic markets. The second technology is the same colloidal silica process


commonly used by investment casters worldwide. Major cus- tomers are commercial overseas markets and domestic aero- space, military and energy. Because the output of the approximately 1500 sodium sili-


cate foundries are sold to domestic markets, their output have been less affected by the worldwide economic crisis. Promoted by the stimulative measures offered by the Chinese govern- ment, output using this technology could reach one million tons in 2010. Stricter environmental and energy policies may negatively impact this industry segment, par- ticularly smaller foundries with less ability to improve equipment and technology. The colloid silica technology, commonly used in the rest


China's Unique Investment Casting Industry Shows Healthy Recovery In Wake of Global Financial Woes In the next five years and beyond, aerospace, automobile,


high-speed train, and nuclear energy power generation markets will provide new development opportunities. Actually, the jumbo jet project has already begun, the out-


"The output value in 2010 is expected to match 2008 levels."


put of automobiles in 2010 will be more than 17 million, the length of high-speed railway has surpassed 7000km, and the speed of the fastest train has reached 350km/h. The rapid devel- opment of high-tech equipment man- ufacturing encourages the demand of high-level castings, which naturally includes investment castings. In this environment, some strong private enterprises have begun in-


creasing investment to improve equipment and technology aim- ing at high value-added casting market. Of course, the challenges cannot be ignored, such as ap-


preciation of Chinese currency, rising price of energy and raw materials, increasing labor cost, growing pressure from envi- ronmental concerns and so on. A new problem, labor shortage in foundry industry, emerged


"A new problem, labor shortage in foundry industry, emerged in 2010."


of the world, developed quickly in China from the beginning of 1990s. Some foundries are state-owned and produce castings for aerospace, military and energy industries. The output value of this category grew by about 20% in 2009, despite the depth of the financial crisis. General commercial investment castings made by colloidal


silica investment casting process are mainly for oversea mar- kets. Since October 2008, orders continued to drop sharply until the end of 2009. In 2010, almost all foundries resumed full-scale production to satisfy the sharp increase of casting demand from the overseas customers. The output value in 2010 is expected to match 2008 levels. The Chinese investment casting industry currently faces an


opportunity for change. According to the China’s 12th five-year plan (2011-2015), industry in general will be making adjust- ments. Heavy-polluting, high-energy consuming industries will face more limits. Consequently, energy saving and environmen- tal protection technologies and equipment will be hot topics for most investment casters.


12


in 2010. Compared with other industries, foundries are finding it more difficult to attract a new generation of labor. Although some foundries have taken mea- sures to improve the working con- ditions, the situation is difficult to reverse. Consequently, there is an


unmistakable trend toward mechanization and automation to re- duce the demand of labor. As for the future, in response to current opportunities


and challenges, Chinese investment casters are facing a time of change involving: (1) further development of overseas and domestic markets, (2) expansion of the value-added castings, and (3) establishment of environmental protection and energy saving practices.


11651 MONARCH ST.KITTYHAWK PRODUCTS Tel. (714) 895-5024 www.kittyhawkinc.com


GARDEN GROVE, CA 92841 Fax (714) 893 8709


E-mail: Sales@kittyhawkinc.com HOT ISOSTATIC PROCESSING


SERVICES FOR PRODUCTION AND RESEARCH PROGRAMS ISO 9001:2000 Registered - AS 9100 Rev. B Registered


• CASTING DENSIFICATION • Improved Properties • Reduced Rejection Rate • Reduced Scrap Rate


• POwdER CONSOLIdATION • PRESSURE BRAZING • dIffUSION BONdING • CERAmICS


January 2011


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28