The 13 th Five-year Strategic Plan of Chinese Foundry Industry
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1 The 13 th Five-year Strategic Plan of Chinese Foundry Industry WEI GAO China Foundry Association March 15, 2017
2 Contents 1. Current situation and main problems 2. Guiding ideology, development strategy, objectives and main tasks 3. Relevant measures and policy proposal 2
3 1.1 Current Situation Casting output continues to grow but the growth rate is slowdown Output(10,000t) % 6.7% % 12.8% % % % % % % % % 3.8% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% growth rate (%) % % 0.0% The total casting annual output and growth from 2000 to % 3
4 1.1.2 Enterprise s average scale gradually increased average annual production(t) During the second half of the 12 th Five-year Plan : Companies quantity gradually reduced (about 26,000 at the present) Casting output of the top 4500 scale companies accounted for more than 70% of the total Industry concentration improved Casting materials structure optimized The percentage of duc6le iron cas6ng and aluminum cas6ng increased. Produc6on percentage Year Material Gray iron Duc6le iron Cas6ng steel Aluminum Casting materials 7.7 structure in China
5 1.1.4 Casting quality was improved steadily The equipment and technical level of foundries has been greatly improved Raw and auxiliary materials production specialization greatly improved Domestic foundry equipment manufactures significantly improved The concept of green foundry and sustainable development has been strengthened Optimizing the industry structure and layout 5
6 1.2 Main Problems Foundry industry still has a lot of outdated production capacity Uneven development between enterprises, a large number of outdated production capacity More than 10,000 foundries Can t meet the requirement of the Conditions of Foundry Industry Access. Pollutant emissions, energy consumption, material consumption is much higher than the industry average 6
7 1.2.2 Many fields have excess production capacity Casting used in a few key equipment are still not able to meet the industry requirements Awareness of quality and brand is not enough Inefficient model of growth still exists. 7
8 1.2.6 Foundry standard system can t meet the demand of market Its covering area is limited and is out of sync with the fast development of foundry industry, which can t meet the market requirement. It fails to provide technology support for the research of new-type and medium and high end products and extending industry chain. The Standard is not complete and it takes long time to formulate, the incomplete standard and inconformity restrict the industry s transformation, upgrading and innovation Vocational education system can t meet the industry s requirement The operation staff s overall quality and skill level is comparatively at a low level Lack of management personnel and engineering and technical talents Lack of onsite education and training within enterprises The quantity of talents are less and in uneven distribution.
9 2.1 Guiding Ideology Five new ideas of development -- "innovation, coordination, green, open, sharing" Adhere to the new road of industrialization with Chinese characteristics "Made in China 2025 "- innovation driven, quality first, green development, structural optimization, talent oriented" 9
10 2.2 Development Strategy Quality & Brand Technology Innovation Green Foundry Structural Optimized Lean Management Training 10
11 2.3 Objectives and Main Tasks Improve industrial concentration to achieve the transformation of quality and efficiency Casting output Keep low annual growth rate :3% About 55 million t Output value about RMB700 billion Industrial concentra tion The number of foundries decreased year by year The number of foundries less than 15,000 30% foundries(about 4,500 foundries) output will account to 80%+ of the total 11
12 2.3.2 The process of high end casting and Intelligent foundry equipment Realize the ability to make key casting to meet the needs of the major equipment in China F Construc5on machinery and other high-end hydraulic cas5ng F Large energy cas5ngs and rail transit cas5ngs F Aerospace cas5ng Promote the integration of IT application with industrialization to realize smart foundry F F F F R & D for wide format 3D print for sand mould (core) and related supplies including robot applica5ons Digital design, analysis and manufacturing technology Digital near net shape cas5ng technology Digital intelligent foundry (workshop) 12
13 2.3.3 Casting material structure is optimizing The percentage of ductile iron and vermicular graphite cast iron in cast iron in 2014: 37%, by 2020: 42% The percentage of aluminum and magnesium castings production in all castings in 2014: 13%, by 2020: 20% The energy saving and emission reduction will be lifted to a new level The comprehensive energy consumption per ton will be reduced by 10% than 2015 The reclamation rate of foundry sands will be greatly increased, the annual reclamation amount will reach to more than 3 million tons. Enterprises approved by Foundry Industry Access will meet the requirements of energy saving and emission reduction 13
14 2.4 Main tasks Advancing the implementation of Foundry Industry Access and the elimination of outdated capacity Conquering the bottleneck of the manufacturing of high-end key castings Promoting the R&D and application of advanced foundry technology and equipment Promoting the quality and brand construction of foundry industry Advancing the development of innovation-driven system 14
15 2.4.6 Promoting the deep integration of Industrialization and Informatization in foundry industry Building specialty and smart foundry clusters (industry parks) Advancing the whole industry to form the low-carbon recycled development mode Constructing Association Standard System which meets market demand and innovation requirements Establishing and completing the personnel training system and mechanism at all levels 15
16 To promote the development of modern service in foundry industry Focus on the development of related Logi s6cs R&D Brand services Improve the efficiency of resource allocation Orienting to the transformation and IT Eco- Saving Foundry Cluster EC HR upgrading of the foundry industry Inspe c6on Incub ator Cons ul6n g Fina ncial 16
17 Promoting international communication and cooperation Accelerating the cooperation on international capacity and equipment manufacturing Promoting the implementation of Belt and Road strategy in foundry industry Advancing various cooperation between Chinese foundry industry and the top international enterprises in the product R&D and technology, establishing long term strategic cooperation relationship Improving right-protection awareness in international trade, safeguarding industry s safety, protecting proprietary intellectual property rights, reducing and avoiding international trade conflicts related with castings 17
18 Advance the culture construction of the foundry industry Opportunity: China is making great efforts to advance the cultural industries Building workmanship spirit Constructing foundry industry s spiritual system Establishing the spiritual power and value orientation Building the system for carrying forward the traditional foundry culture carrying forward the bronze culture improve the charm of Chinese art foundry advancing the compiling of Foundry History and the construction of the Foundry Museum of China pushing the going out of Chinese foundry culture and traditional culture Establishing foundry cultural and service systems
19 3.1 National industrial policy proposal Closely linking with Foundry Industry Access, revising standard for energy consumption and environmental protection in foundry industry, establishing elimination mechanism of outdated production capacity; Drafting a concrete plan of the Green Manufacturing Engineering in foundry industry; Support built key generic technology research institute, Industry Alliance, Collaborative innovation platform in foundry industry; 19
20 3.2 Establish the association standards system to meet the need of market Regulation of CFA standards Perfect the regula6on Specifica6on process Solid founda6on Standards system + Foundries + Branch + Foundry cluster + Upstream and downstream industries To built information platform of association standards and inquiry system To carry out international cooperation 20
21 3.3 Set up a reasonable career system, open rising passageway for talent The Foundry Institute cooperated by National Open University and CFA builds a new model for the personnel training of foundry industry The major matches with requirements of industry Professional courses matches with industry standards Education matches with production process School certificates matches with professional credentials Training matches with lifelong learning 21
22 Metal China 2017 Metal China will provide a platform for you to know more about Chinese foundry industry and establish cooperation with Chinese companies as well as the world. June Shanghai
23 Thanks for your awen6on! Contact: Gao Wei
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