Casting Industry

1.1.  Situation of production. 
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Chart  no.1 and 2 showed  casting industry situation in 2002  of  countries through   production result ( by tons).  For the casting Iron and Steel( chart 1), China  continues to lead in the world and account for 26%  of total global production, rose by 9% compared to 2011 . The following is United State  with 16%,  down 0,5% compared to 2011.

  Chart  1: The output of casting Iron and Steel ( by tons)  in  the countries in the world.

The following  statistics the output of  casting  ferrous metal ( chart2), United State American continues to lead  in almost kind of  alloys , accounting for 26%  in total global production,  rising 2% compared to 2001. The second is Japan with 13%, in which the aluminum alloys  casting  accounted for 97% in total production of casting  ferrous  metal of this country. China accounted for 11%. Mehico has the fastest growth rate of 6% compared  to  2.9% in 1995.

Chart  2: The output of casting ferrous metal (by tons) in the countries in the world.

The main partner of  the casting industry  is automobile  industry  ( accounting for 50%  market share), general  engineering about 30% and  construction with 10% . In which more 60% iron casting mainly  used  in automobile  industy, steel casting  mainly  used  in construction , machine manufacturing and industrial  valve.

Casting production situation noted the emergence of the developing countries such as: China, India, Brazil, Mehico,…

1.2. The Scale of manufacturers.

 Casting production is using less labor, factories due to increased levels of automation. The  relationship between scale of  plant and productivity and labor are shown in Figure 3:

Figure 3: The  data about the productivity  of production iron and steel casting in European countries

1.3. Cost and Profit

 Casting industry costs much energy , primarily  natural gas and electricity.  In particular, smelting stage is the most energy consuming when accounting for 55% of total energy use .The next is the stages of molding and colorectal , accounting for 20%.

     Figure 4: The energy cost of the stages in the casting production.

In recent  times, casting industry in some developing countries have  declined   because automobile industry  go down and are undergone the fierce competition  from  developing  countries such as :  China, India, Brazil , Mehico,.. . Accordingly, the added value of casting  are produced in developed countries reducing .  Notably  is the U.S where  the added value decreased by 5.4% in  stage of  2000 -2004.

2.  The Situation of casting industry in Vietnam

Situation analysis showed  that the scasting manufacturers in VietNam have two major problems: lack of reasonable management model from design and investment orientation.

2.1. Design management model of casting manufacturers in Vietnam.

Currently, design management model  of the casting producer in Vietnam organized  by stages . In particular,  each of stage operates  independently,  if a stage has a problem, manufacturers have to take a lot of time ( back from the beginning ) to adjust  the design .This increases the time and design cost.

Fingure 5: Diagram of design management in most the casting manufacturers in Viet Nam

Another reason makes to increase highly time and cost. This is the development process of products undergoing many times of trial production.. Normally, after  receiving requests from customer , manufacturers conduct  designing the casting following with  experiences and trial manufacturing . If it is unsuccessful, the manufacturer will  contact customers to adjust  the design. However, the  preparation time and production cost have been increased by the trial  manufacturing .

       Figure 6: Process of casting design in Viet Nam.

Bold  lines show the stages spending much cost. Large frame include the stages in the casting  plant .

Design processing doesn’t estimate  the production cost correctly _ basis of giving quotations for customers. This is by the diversity of the casting so cost of production calculation model is diferrent for different the castings. Thus, the manufacturers may give  inaccurately quotations , sometime causing damage to ourselves and our customers.

 2.2.  Lack of capitalandinvestment orientations.

Most of the casting manufacturers have low level of technology, obsolete equipment, the casting manufacturing at plus average rate to high scrap rate so making low business profit. In addition, the government, the public and manufacturers still do not fully understand the advantages of the casting and  the role of the casting technology with the economy. The result is the lack of interest and investment capital to develope in a long time.

Recently, with available capital , most enterprises invest  in new  casting technology,  automatic production line, testing-analysis equipments  ,… Obviously,  this brings positive changes  but it can not help the industry to develop a higher level because testing-analysis equipments do not help reduce waste ( just reducing the amount of returned goods), new technology and increasing productivity only increases damage if design is not good ( according to statistics about 90% casting defects are caused by design errors).

On the other hand , as investment efficiency of  the previous enterprises haven’t met requirements so they don’t create motivation for the business peers.

3.  Summary.

Casting production situation showed the demands for casting of large developed countries and gradually  dependent on import. In addition, it also noted the emergence of developing countries. This shows the casting industry tendency moving from developed countries to developing countries increasingly.                                                                          

The application of the technology, equipment and tools are updated, modern with more and more austere demands from customers have made castings from common goods into products with added value

 Before this situation, Vietnam's manufacturers have the opportunity to more developed. To take advantage of opportunities, manufacturers need to improve the level of design and reasonable investment orientation. Through researching activities, industry trends in the world and own working experience , the authors found that concurrent engineering can solve problems and increase the level of design and  investment orientation for manufacturers in Viet Nam.

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