There is a huge supply gap in the Chinese casting market, which has attracted many multinational casting companies into China. As Europe's largest automotive founder, Georg Fischer decided to accelerate the pace of development in the Chinese market and hopes to become the preferred supplier for the Chinese casting industry by 2010.
Although the Swiss Georg Fischer Group entered China in 1993, it is not as famous in the machine tool and pipeline system industry as it is in the automotive industry. In fact, the Georg Fischer Group ranks first in the European automotive casting market. Mercedes-Benz, BMW, Audi, Volvo and many other automotive brands have used their casting products. “China is one of our key markets for the next round of development.†On October 26th, Georg Fischer's new plant in Suzhou was officially put into production, marking the start of the European auto-cast giant to accelerate its development in China.
There is a huge gap in market supply
Due to rising oil prices at home and abroad in recent years, the automotive industry is striving to improve fuel economy. To achieve this goal, an important measure is to reduce the weight of the car under the premise of ensuring safety, which requires the automotive castings to be lightweight and precise. At present, European and American auto industries, especially the car industry, have gradually shifted from traditional steel castings to light metal castings such as aluminum alloys and magnesium alloys.
China is one of the fastest-growing areas in the automotive industry. Demand for modern castings is very large, but there is a huge supply gap in China's modern casting market. This is mainly due to the late start of the Chinese auto industry. Early products were concentrated in trucks. Aluminum alloys and magnesium alloy castings of cars have only just begun in recent years with the rise of the auto industry. Currently, there are still a considerable number of castings in cars sold in the market, especially mid-to-high-class cars, which are dependent on imports.
This attractive big cake can be thought of as attractive to George Fisher. The multinational company owns three core businesses: automotive, machine tools and pipeline systems. The automotive group is the largest foundry in Europe. “Our chassis and powertrains make up 40% to 50% of the European market, such as Porsche. Many of Geoff Fischer's products are used, including chassis, powertrains and body structures,†said Ferdinand Stuz, president of the George Fischer Automotive Products Group.
Georg Fischer's leading technology in the field of modern automobile casting is precisely what the Chinese market currently lacks. "For example, the sub-frame, if you use the traditional steel welding program, you need to use 30 separate parts, and the need for welding, the processing cost is very high, more advanced is the mixed casting scheme, the use of light metal, can reduce the parts by 60%, With a weight reduction of 30%, Georg Fischer's single-piece casting solution, which uses light metal and has only one part, can be reduced in weight by 40%, said George Steinman, president of the Fischer Group.
The new factory was built in just over 1 year
Georg Fischer's "accelerated run" in China's automotive casting industry began in 2004. “At that time, we discovered that many Chinese customers are looking to purchase directly in China, and our old factory in Zhangjiagang has reached the limit of its production capacity and cannot meet the current market demand, so we decided to build a new factory in Suzhou Industrial Park.â€
“We can use the term high speed to summarize our work in Suzhou.†Zhang Muxi, general manager of Georg Fischer Automotive Products (Suzhou) Co., Ltd. stated at the official production ceremony of the Suzhou plant on October 26, “From September 15, 2004,†We signed the first batch of important contracts. Two weeks later, the groundbreaking ceremony was successfully held. By July 20 this year, the first batch of products had been successfully tested. It took only one year from the time of project confirmation to completion and production.â€
The Suzhou factory workshop and management department has a total area of ​​10,600 square meters. There are four phases of construction plans. The first phase of the project has been completed in July 2005. A modern casting plant with about 24 casting equipment will eventually be built. The old Zhangjiagang foundry will stop production. Most of the 40 regular employees in the factory will be relocated to the new plant in Suzhou.
When the reporter visited the Suzhou factory, he saw that the new factory realized full mechanized production, and there were few workers on the production line. It could produce dozens of products such as engine chassis, engine box, gearbox body, and clutch box. "Such as this direction control bracket and slider, which is one of the safety controls of the car, is very important to ensure the safety of the car. We can achieve 0.01 millimeter accuracy before finishing." This process requires to make dozens of presence Well-informed reporters can not help but marvel.
“The new plant will accept a large number of orders from the automotive industry in Europe and China.†Zhang Muwei told reporters that the direction control brackets and sliders have started trial production in July 2005, using magnesium die-casting and machining technology, and will be November 2005 Mass production was started on the PQ35 platform cars such as FAW-Volkswagen Golf and Audi A3.
"We believe our products are very competitive." Zhang Muzhao told reporters, "Before I came to China, we already knew how powerful China's price war was and I was prepared. The bulk raw materials at the Suzhou plant include aluminum alloy and magnesium. The alloys are sourced from China and many of the accessories are not substituted in China and will be imported or purchased in the China branch of the joint venture company.The Suzhou factory is also accelerating the process of localization.The products will be much cheaper than the original imported from abroad. The specific (how much) is not counted, but there is certainly a decline."
Became China's market leader in 2010
Like many multinational companies, George Fisher has a very clear plan for the company's vision. “Our goal in the Chinese casting market is to achieve an annual growth rate of 15% to 20%. By 2010, we have become the preferred R&D partner for local manufacturers and become the preferred supplier of aluminum-magnesium alloy parts and become the preferred supplier of iron castings. " Ferdinand Stuz eloquently stated George Fisher's "ambition".
To achieve this goal, Georg Fischer needs to do quite a lot. First of all, for the Suzhou factory itself, “We are currently preparing for the certification of TS16949. By the end of 2005, we will install six large die casting machines and establish high-efficiency machining centers. The annual designed output will reach 10,000 tons of aluminum and magnesium alloy products. â€
Secondly, Georg Fischer will also establish the Cast Iron Division and the Semi-trailer Division. At the same time, “We will establish an R&D center in China, which is the third R&D center after Germany and Switzerland.â€
Georg Fischer apparently wants to flex its muscles in this high-growth emerging market in China. This may be good news for domestic automakers, and they can purchase modern casting products at a lower price. However, for domestic foundries, it may cause greater competitive pressure. How to deal with this situation will become a topic that domestic automobile foundry companies must consider.
Editor: Zheng Xueqin
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