A prospect of the Asia Foundry Industry from Asia Foundry Forum

 On September 19, 2024, the 6th Asia Foundry Forum was held at the Bangkok International Trade Exhibition Center in Thailand.At the forum, Japan Foundry Society, the Institute of Indian Foundrymen, Taiwan Casting Industry Association, Indonesian Foundry Industries Association, and China Foundry Association shared information on the current situation and changes occurred in recent years from different perspectives. We attempted to find the distinctiveness inside and make prospects of the development of the Asia foundry industry from different dimensions.

1.What is the current situation of the Asian foundry industry?

 In Japan, the output value of the foundry industry has remained at around 2 trillion yen in recent years, with ferrous metal casting and non-ferrous metal casting each accounting for half. Compared to 2022 and 2023, Japan's foundry industry has recovered in some degree; Taking the automotive industry as an example, the amount of cast iron parts used in automobiles increased from 1.93 million tons to 2.01 million tons, and the amount of aluminum alloy castings increased from 890,000t to 960,000t. In 2023, India's casting production reached 14.16 million tons; The casting output in Taiwan province of China reached 660,000t; Indonesia's casting production reached 740,000t; China mainland's casting production reached 51.9 million tons. The Asian foundry industry holds an important position in the world.

 In terms of the number of foundry enterprises, there is a decrease in Japan, from 1758 in 2015 to 1659 in 2020. Among the 100 decrease, the number of ferrous casting companies accounts for 80%; In India, there are approximately 5000 foundry companies; In Taiwan province of China, there are about 800 foundries; In Indonesia, there are approximately 45 foundries; The number of foundries in China Mainland is about 23,000.

2.What are the characteristics of the Asian foundry industry among different countries/regions?

Due to changes in downstream industry demand, the foundry industry in different countries/regions has also undergone structural changes. For example, in China, according to incomplete statistics, the number of foundries decreased by nearly 289 between 2020 and 2023, with 594 enterprises decrease in ferrous casting and 305 increase of non-ferrous casting enterprises (see Figure 1). The same is true of Japan, from an annual growth rate of 4.1% for cast iron parts to 7.5% increase rate for aluminum castings between 2022 and 2023. The lightweighting of automobiles and the transition from internal combustion engine vehicles to hybrid or electric vehicles are the main driving factors, although electric vehicles in Japan are not as popular as that in China.

Figure 1: Changes in the number of Chinese foundry enterprises.

 The regional characteristics of different countries are also quite obvious. In India, the corresponding characteristics between the foundry industry clusters and downstream industries are very obvious. For example, the Coimbatore cluster is famous for its pump set castings, while Golhapur and Belgaum produce automotive castings, and Rajkot produces diesel engine castings. In Taiwan, China, the output per square meter of foundry enterprises can reach 40.2 tons, which is said to be the first in the world; Investment casting plays an important role in Taiwan, ranking second among different casting processes (see Figure 2).

Figure 2: Proportion of output of different casting processes in Taiwan, China

Figure 3: Casting demand distribution of downstream industry in Taiwan, China

Figure 4: Casting demand distribution of downstream industry in India

3.Will the Asian foundry industry have a better future?

 In India, the latest manufacturing policy plans to increase the share of manufacturing in GDP from the current 15% to 25%. Due to the crucial role of the foundry industry in supporting manufacturing: almost all machinery and other manufacturing industries rely on the foundry industry, India's casting production is expected to increase by 7% -10% by 2024. On the contrary, a survey by the Japan Foundry Society shows that over 70% of respondents predict that the foundry industry will remain unchanged or become worse in 2024. In Taiwan, China, the increase of semiconductor equipment and renewable energy will become the main driving force for the growth of Taiwan's foundry industry.

 However, different countries and regions will also face the same questions, such as rising labor prices, carbon policies, environmental protection, and other factors that bring pressure to the foundry industry. Automation, intelligence, and new technologies (such as 3D printing and robots) have become indispensable driving forces for the sustainable development of the foundry industry. In any case, in order to ensure its sustainable development, the cultivation of industry talents is extremely important, and this is true to different countries in Asia.

 Overall, the Asian foundry industry plays a pivotal role in the global foundry industry, both in terms of casting output and categories; Due to differences in natural endowments, different countries/regions in Asia exhibit distinct characteristics; Although different countries/regions have different views on the growth of the foundry industry due to different stages of development, the factors that affect the foundry industry tend to be the same. With the equipment improvement, the demand for industry talents are growing and becoming increasingly important.

Note: The data in the article were published in the reports made by the Japan Foundry Society, the Institute of Indian Foundrymen, Taiwan Casting Industry Association, Indonesian Foundry Industries Association, and China Foundry Association at the 6th Asia Foundry Forum. The copyright belongs to the aforementioned associations.