Competition pattern of China’s large state-owned foundry

The impact of the project by competitors is mainly to compete for the market outside FAW Group, such as the cylinder block casting Market of Volvo Group and the cylinder block casting Market of Cummins company. In this market, especially some large foreign companies, they pay more attention to the overall strength of the company.

For the cylinder block casting Market of Volvo Group, the biggest competitor of the casting company is the casting and forging plant of Weichai Power Co., Ltd., which ranks third in comprehensive analysis. It has advantages in molding equipment and melting equipment, and the scrap rate is basically the same as that of the casting company. But its price is relatively high. The foundry company has obvious advantages in production capacity, core making equipment and sales price, and the scrap rate is slightly better than that of Weichai Power Co., Ltd. For the project, the foundry company has certain advantages. It is estimated that 50% is more likely.

For Cummins’s cylinder block casting market, Yituo No. 1 cast iron plant and Dongfeng No. 1 commercial vehicle casting plant will be the biggest competitors. Yituo No. 1 cast iron plant has strong comprehensive strength and has advantages in melting equipment and sales price, but the casting scrap rate is high. Although the comprehensive strength of Dongfeng Co., Ltd. commercial vehicle foundry No. 1 is slightly poor, it is still well-known in the industry because it is subordinate to Dongfeng Group, and because Dongfeng Group and Cummins have a joint venture engine plant in China, Cummins may prefer the plant under the conditions of guaranteed quality and reasonable price, But the biggest weakness of the factory is the high cost and sales price. For the cylinder block casting Market of Cummins company, the possibility of purchasing all from the casting company is low, and it is estimated that 30% is more likely.