In recent developments, the China Mould Base Industry Upgrading Forum held in Huangyan, Zhejiang, highlighted a growing concern among industry experts. They noted that international mold manufacturing giants are intensifying their efforts to penetrate the Chinese market, leading to an increasingly visible crisis within the domestic mold industry.
According to reports from Hong Kong media, the mold manufacturing sector is considered the backbone of the broader manufacturing industry and is often referred to as "the mother of industry." This is because a significant percentage of components in various sectors—such as electronics, automobiles, electric motors, appliances, instruments, and communication devices—require molds for production. In many cases, between 6% to 80% of these parts depend on mold forming processes.
Globally, manufacturing production bases are shifting rapidly toward China, with the country’s manufacturing sector undergoing high-level upgrades. As a result, the demand for high-quality, precision molds has surged. Since the mid-1990s, when major international mold companies began entering China, there has been a renewed wave of investment aimed at capturing market opportunities. This influx has placed significant pressure on local mold manufacturers, who now face competition from advanced foreign technologies and superior products, squeezing their market space.
Industry observers have expressed concerns that the increasing presence of foreign capital could gradually erode the position of Chinese mold companies, potentially leading to a situation where foreign firms dominate key segments of the industry. In response, domestic companies must carefully consider how to manage and influence the standards of foreign investment to maintain their competitive edge.
A notable example is the new mold factory established by Finland's Belrose, a global leader in mold technology. The facility, built entirely according to European and American standards, recently started operations. The first phase of the project involved an investment of 60 million yuan (approximately NT$242 million), focusing on producing high-end molds for industries such as telecommunications, healthcare, electronics, and automotive. The factory also offers comprehensive testing and verification services.
Last May, Japan's Fujitsu Industries, the top auto mold manufacturer in the country, partnered with Mitsui & Co., Ltd. to establish a joint venture in Yantai, Shandong Province. Meanwhile, Cole Asia formed a partnership with China Dongfeng Motor Mold Company, creating Wuhan Dongfeng Kerr Mould Standard Parts Co., Ltd., with Cole Asia holding a 63% stake.
In July of last year, Japan's AB company, which specializes in mold manufacturing, entered into a collaboration with a Taiwanese computer peripheral equipment manufacturer. They set up a factory in Shanghai to produce mouse and mobile phone molds. Additionally, mold companies from the European Union, South Korea, and Singapore are actively seeking partnerships in China, demonstrating a strong interest in tapping into the growing market.
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