Source : the Korea National Statistical Office
Statistical Survey Report on Mining and Manufacturing (2015)
based on companies with 10 or more employees
COUNTRY REPORT
31TAGMA TIMES NEWS LETTER • -2015SEPTEMBER
INDIA-2016
Venue : Bangalore International Exhibition Centre (BIEC)
Bangalore, Karnataka, India
Date : 6th to 9th April, 2016
A. Market Trend
a. Market Overview
b. Production Status by Categories
• Total production consists of 62.5% of domestic
demand and 37.5% of export to over 120 countries.
• Although recent lasting exchange rate slump of JPY
and EUR leading to lower profitability, Korea die and
mold industry reached its record high in export in
2014.
• Die and mold production growth rate 5.6% export
growth rate 20.7%
• In 2013, plastic mold accounted for 44.1% of the
entire die and mold production and press die for
35.3%; both amounting to 79.4% in total.
• Average growth rate of plastic mold is 6.8% during
last 3 years.
Korea Die And Mold Industry June 24, 2015 _____________________________________________
• Average growth rate of press die is 11.2% during last
3 years.
• The total volume of mold export is 3.23 billion
dollars in 2014. (20.7% increased from 2013)
• In 2014, export to China and Japan recorded over
500 million dollars for the first time.
Export to China reached 563.17 million dollars, the
1st place on the list.
China remained the 2nd largest importer of Korean
die and mold products from 2010, but there was an
increased demand for press die due to development
of Chinese automobile industry, and it led entire mold
demand in China.
• Diversification of export
c. Distribution of Die and Mold Company in Korea
(2014)
d-1 Export
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Unlike major market was limited Japan, China, and
USA in past year, there were no country who has ratio
over 20% in total volume of Korea mold export 2014.
It came from the result of Korean mold makers’
effort to search new market.
Also, export to emerging markets such as Turkey and
Russia resulted in sharp increase in export at large,
especially export to Europe drove growth of entire
export during last year.
• The total volume of mold import is 160 million
d-2. Import
dollars in 2014. (2.4% decreased from 2013)
• Import of die and mold products in 2014 recorded
160 million dollar, 2.4% decreased from 164.4 million
dollars last year (2013).
• Change in import countries due to economic
recession
Imported 3.97 million dollars and 3.65 million
dollars of products from Thailand and Malaysia,
respectively, despite lower import dependence
before.
Even though its share plunged 3.7% from that of
2013, Chinese market share is increasing continuously
in Korean market with price-competitiveness, and
import from Southeast countries such as Thailand
rose as well.
Because of global economic recession, Korean
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COUNTRY REPORT
32 TAGMA TIMES NEWS LETTER • -2015SEPTEMBER
INDIA-2016
Venue : Bangalore International Exhibition Centre (BIEC)
Bangalore, Karnataka, India
Date : 6th to 9th April, 2016
COUNTRY REPORT
33TAGMA TIMES NEWS LETTER • -2015SEPTEMBER
INDIA-2016
Venue : Bangalore International Exhibition Centre (BIEC)
Bangalore, Karnataka, India
Date : 6th to 9th April, 2016
economy also continued to become sluggish, raising
demand for cheap imported die and mold products..
d-3. Demand for Molds by Industry
• Demand for mold in Korea according to industry,
automobile 34.3%, electronics 27.6%, IT 11.7%, H/A
8.9%, semiconductor 4.3%, O/A 3.8%, and others
9.6%.
• The mold demand would be increased mainly in
automobile and IT industry.
• Despite of economic hardship in major die and mold
export and import country, mold demand of
automobile industry expected to further grow thanks
to economic recovery in USA and Europe.
a. Prospects for Die and Mold Related Industries
Machine Tools
Tools
– As domestic economy was sluggish in 2014, Korea
machine tools industry growth rate was lower than
expected, 1.4% due to delayed development of new
cars and reduced domestic investment in facilities.
– By industry, automobile and parts accounted for
35.0%, general equipment 19.5%, electronics • IT
12.5%, metal 9.0%, and shipbuilding • aviation 5.2%,
there was no dramatic change in share compare with
the previous years.
– For 2015, the production is expected 5.66 billion
dollars, 5.3% up from last year according to moderate
recovery in the domestic and foreign economy.
– Increased demand is projected in existing major
importers like USA and Europe, resulting YOY 5%
increase in domestic investment in facilities.
– When it come to the IT industry, in particular, using
metal design in mobile phone will drive growing
demand in tapping center . Also, with the help of
release of new cars and decrease of consumption tax
for mid-size cars, growing demand in domestic
automobile industry is positive effect to machine tool
industry.
– In the 1st half, the unit price of Korean tool product
was decreased due to price competition because of
most market focused on cost reduction not only
existing but also emerging country, and fluctuation in
foreign exchange rate also led low profitability.
– However, demand for consumables is stable,
development of related industry such as automobile,
semiconductor, IT and electronics was main factor of
tool production could be increased by 4.6% compare
with 2013.
– Among others, production of the tool industry was
increased covering tools for difficult-to-cut such as
34 TAGMA TIMES NEWS LETTER • -2015SEPTEMBER
INDIA-2016
Venue : Bangalore International Exhibition Centre (BIEC)
Bangalore, Karnataka, India
Date : 6th to 9th April, 2016COUNTRY REPORT
nano-diamond and small tools related to mobile
phones last year, but cutting tool for automobile
related with die and mold industry suffered fall of
demand due to decrease of domestic production,
increase of overseas production, and sluggish
domestic sales.
– In 2015, economic growth rate of Korea is expected
over 3%, the production of the tools industry could
achieve 3.152 billion dollar, 3.7% up.
– Due to overall global economic was slow downed,
demand for consumer goods has fallen in 2014, the
profit of Korean plastic chemical industries is
decreasing during 3 years.
– The automobile industry, a major consumer of
plastic items , is likely to hit a low growth rate around
3% in 2015.
– However, demand for new technology refer to eco-
car and other goods to improve fuel efficiency is likely
to record sharp growth in 2015.
– In particular, the trend of regulation for gas refer to
greenhouse effect and smoke from car is leading
investment and research to develop new plastic
applied material, the plastic industry could be change
to rising curve based on such trend and traditional
existing demand for electronics, IT products.
– Also, applied industries in bio-plastic and recycling
technologies are expected to drive progress in the
industry.
b. Prospects for Demand from Major Die and Mold
Consumer Industries & Production Conditions
• Virtuous cycle of export and production of die and
mold by maintaining and reinforcing competitiveness
of the industry
Plastic Industry
Automobile Industry
– Operating automobile facility in China and Brazil.
– Export to overseas car makers and supply to
overseas factories likely to grow.
– Increase in demand for SUVs with high share in
export , launching new-car
• Automobile will drive the development of the
Korean die and mold industry with the IT industry
• The industry expected to grow both in production
and export.
– Having the brightest prospects among major die and
mold demand industries.
– Despite of PC and smartphone market was
saturated, increasing in export of overall
manufacturing industry will give positive effect to
semiconductor industry through by new applied field
demands for such as servers, wearable devices, SSD,
and cars.
• However, the ratio of semiconductor in the Korean
die and mold industry is only 3.4%, it seems the
positive effect is not very much critical.
• Worsening domestic and global conditions led to fall
in production and export last year.
– Despite favorable factors such as 2014 Brazil World-
cup, domestic demand continued to become sluggish
for a long time.
• Competition becomes fiercer; aggressive R&D
investments of competitors , fluctuation of exchange
rates, and FTAs.
• Growing global demand likely to increase export and
production.
– Better living standards of developing country lead to
growing demand for innovative items such as UHD
TVs.
– Industry leaders in Korea increase investments and
make efforts to gain differentiated competitiveness
based on technological advantage, expecting 3.4% of
export this year.
Semiconductor Industry
H/A Industry
COUNTRY REPORT
35TAGMA TIMES NEWS LETTER • -2015SEPTEMBER
INDIA-2016
Venue : Bangalore International Exhibition Centre (BIEC)
Bangalore, Karnataka, India
Date : 6th to 9th April, 2016
IT Industry
a. Result of Expo in Korea
• Growing export likely to continue this year.
– Growing subscribers of smartphones lead to
growing demand and release of newest smartphones.
– In emerging markets including developing countries,
replacement for SSD and computer parts results in
growing demand.
• Lower growth rate than before, though.
– Due to the nature of IT industry is most sensitive to
economic condition, effect of external factors and
increase of lower prices items from new competitors
results in fiercer competition.
• Title: INTERMOLD KOREA 2015
The 22nd Korea Int'l Die
• Mold & Related Equipment Exhibition
• Period : March 10(Tue) - 14(Sat), 2015 / 5 days
• Venue: Exhibition Center 1, KINTEX
• Participants: 430 companies from 20 countries,
32,000m (1,850 booths)
• Visiting countries: 32 countries
• Scale of exhibition held together with expos of
related industries
• Other events: over 20 events including seminars on
die and mold industry and related industries
• INTERMOLD KOREA 2017 is scheduled for Mar 2017.
(biannual)
b. Overseas marketing activities
• Participation in overseas’ die and mold exhibition
and other related industries
2
Content of report
Engineering supporting services
engineering supporting services
• Engineering supporting services - background
information
• Malaysia economy - facts and figures
• Engineering supporting services - facts and figures
Trends and opportunities
• Engineering supporting services - background
information
The Malaysian
covers the following sectors :
• The MOULD and DIE Sector
• The Metal Machining Sector
• The Metal Stamping & Pressing Sector
• The Casting and Pressure Die Casting Sector
Country Report - Malaysia ____________________________________________________________
• The Surface Engineering Sector
• The Heat Treatment Sector
• The Forging Sector
MOULD & DIE Sector
• Established since the 1970s with the arrival of
investments of multi-national companies, especially
in the E&E sector.
• Initially set up to support these MNCs.
• Subsequently developed into full-fledged mould &
die making entities with capabilities in designs,
development, and fabrication of very high precision
and complex toolings.
• About 1200 companies, including SME’s in the
market, providing about 25,000 jobs.
• One of the leading supporting industries.
36 TAGMA TIMES NEWS LETTER • -2015SEPTEMBER
INDIA-2016
Venue : Bangalore International Exhibition Centre (BIEC)
Bangalore, Karnataka, India
Date : 6th to 9th April, 2016COUNTRY REPORT
Metal Machining Sector
Metal Stamping & Pressing Sector
Casting and Pressure Die Casting Sector
The Surface Engineering Sector
• About 1000 companies, including SME’s
• Two categories:
– Contract machining/components for the
automotive, oil and gas, standards parts like pins,
bushings and shafts, gears, E & E, etc.
– Low volume/high mix, made to order,
jobbing/repair
• Mixed of high precision & general
• It is a very well established sector
• About 600 companies, including SME’s
• Supporting industries such as automotive, E & E,
machineries & equipment, and packaging
• Demand for high speed stampings & high precision
parts
• Demand for stamping and pressing of
parts made from high strength materials
• Fine blanking
• About 70 companies, including SME’s
• 30% cater for the automotive industry
• 50% cater for consumable goods:
components for home appliances,
c a m e r a s , c o m p u t e r s , E & E ,
telecommunication
• About 40 companies, including SME’s; 80% of them
are foreign owned, or joint ventures
• General metal based plating process –
– All types of plating process, anodizing, phosphating
• Servicing semiconductor (e.g. lead frames), E & E,
automotive industries
• Thermal Spray, servicing e.g. the oil & gas industry
• About 20 companies, including SME’s
• Essential service for metalworking industries
• Services include hardening & tempering in
conventional and vacuum furnaces, standard
treatments such as annealing, normalising
• Surface treatment such as carburising,
carbonitriding, nitriding, PVD coating, flame and
induction hardening
• Cryogenic or sub-zero treatment
• Batch and continuous processes
Heat Treatment Sector
• Malaysia economy - facts and figures
COUNTRY REPORT
35TAGMA TIMES NEWS LETTER • -2015SEPTEMBER
INDIA-2016
Venue : Bangalore International Exhibition Centre (BIEC)
Bangalore, Karnataka, India
Date : 6th to 9th April, 2016
GDP 2005-2014
MALAYSIA INDUSTRIAL PRODUCTION INDEX (IPI) - MANUFACTURING 2014
Malaysia's Top 6 Exports in 2013 & 2014
36 TAGMA TIMES NEWS LETTER • -2015SEPTEMBER
INDIA-2016
Venue : Bangalore International Exhibition Centre (BIEC)
Bangalore, Karnataka, India
Date : 6th to 9th April, 2016COUNTRY REPORT
MAJOR EXPORT & IMPORT DESTINATIONS - 2014
MALAYSIA ECONOMY - TOP TEN TRADING PARTNERS
- 2014
Investments & employment in approved projects in
2013 & before : USD1.00 = RM3.00
2014 : USD1.00 = RM3.27
COUNTRY REPORT
35TAGMA TIMES NEWS LETTER • -2015SEPTEMBER
INDIA-2016
Venue : Bangalore International Exhibition Centre (BIEC)
Bangalore, Karnataka, India
Date : 6th to 9th April, 2016
manufacturing sectors
RINGGIT MALAYSIA against MAJOR CURRENCIES as
at 31 Dec, 2014
Engineering supporting services - facts and figures
Mould & Die Sector - Total Import & Export, USD
million
Import / Export Duties & Taxes
Industry Related Fairs & Exhibitions 2015
Mould & Die Sector - Total Import & Export, USD
million
Mould & Die Sector - Total Market 2014, USD Million
Mould & Die Sector - Total market, USD million
Engineering Supporting Engineering
• Moving towards high value-added chain; this
achieved through and driven:
– capabilities in high precision and complex processes.
– accumulated knowledge and experience over the
last 40-50 years.
– Investments in sophisticated equipment and
processes
– Relatively skillful workforce.
– stringent market demand for sophistication and
quality, both locally and internationally.
– Increasing costs of production and competition
demand higher efficiency and quality.
– moving towards quality rather than price driven
markets.
• The estimated total market size of the Malaysian
mould & die, tooling technologies is about USD 820
million
• If the machining sector is added to it, the total is
estimated to be worth approximately USD 1.2 billion
• This USD 1.2 billion includes imports, exports, and
the locally produced moulds & dies, toolings, jig &
fixtures, machined components for domestic
consumption
• The total GDP in 2014 for the manufacturing sector
in Malaysia at current prices is about USD 78.4 billion
Mould & Die Sector - Import & Export, USD million
Engineering Supporting Engineering
36 TAGMA TIMES NEWS LETTER • -2015SEPTEMBER
INDIA-2016
Venue : Bangalore International Exhibition Centre (BIEC)
Bangalore, Karnataka, India
Date : 6th to 9th April, 2016COUNTRY REPORT
• Focusing on high precision moulds and dies for the
semiconductor, and the electrical and electronics
industries.
• Companies are looking outward and moving into the
export market.
• The market is relatively large within ASEAN, with a
worth estimated at about USD 820 million.
• The value of imports of moulds & dies is substantial,
at about 40% of the total market size; hence this
presents encouraging opportunities.
• Excellent supporting services and infrastructure for
investments in the manufacturing and other sectors.
• Developing into a service and supply hub for the
precision engineering supporting industry.
Engineering Supporting Engineering
For the Mould & Die Sector
For the Mould & Die Sector
The main focus of is in the:
• Both the import and export of the mould and die
sector registered an increase compared to previous
few years.
• The future remains bright with the continuing high
annual market demand; as indicated by the significant
importation of moulds and dies.
• Export opportunities to the ASEAN region remain
significant; and also with increasing export trend
towards the EU market.