Strategic measures for China’s foundry industry that the government can take

1.Encourage the diversification of investment subjects in the foundry industry

Reduce the entry threshold of the foundry industry, reduce unnecessary restrictions, actively encourage foreign and private capital to enter the foundry industry, and support its merger and reorganization of existing foundry manufacturers. In the fierce market competition, the foundry manufacturers without characteristics will be eliminated and the number of foundry manufacturers will be reduced; Some foundry manufacturers that can stably produce high-quality batches will become bigger and stronger due to economies of scale; A group of small specialized foundry manufacturers with advanced technology, high management level and mainly providing special castings will also grow up in the market competition. Make China’s foundry industry a diversified and dynamic industry with investors.

2.Trade associations play an important role in helping the development of China’s foundry industry

As a joint organization of foundry manufacturers, trade associations play a very important and irreplaceable role in market economic activities. Its growth and development can not only realize good communication between foundry manufacturers and foundry manufacturers, between foundry manufacturers and the government, between foundry manufacturers and workers, and between foundry manufacturers and foreign governments and peers, It also creates important conditions for administrative power to fade out of the market to the greatest extent. China Foundry Association will strive to play a more active and constructive role in revitalizing China’s foundry industry in accordance with the requirements of market economy.

Actively provide market information to Chinese foundry manufacturers, especially small and medium-sized foundry manufacturers, hold exhibitions and investment promotion and product promotion, and help Chinese foundry manufacturers expand exports; At the same time, pay attention to coordinating the specific business behavior of various foundry manufacturers, maintain an orderly competitive environment, and avoid the adverse phenomenon of “competitive price reduction” of China’s foundry manufacturers in foreign trade. Track the change trend of international casting standards and advanced casting technology, actively participate in the revision and formulation of product standards in the casting industry, organize industry training and technical exchange, and carry out industry statistics, investigation and information release.

The most important thing is to organize foundry manufacturers to carry out anti-dumping and anti trade barriers, and urge the government to solve the important policy problems encountered in the development of China’s foundry industry and the problems faced in international trade on behalf of foundry manufacturers.

3.Guide the foundry industry to take the road of sustainable development

At present, the environmental pollution of foundry factories in China is quite serious. According to the preliminary investigation, more than 80% of the cupola used now can not meet the national requirements for waste gas emission. The discharge of waste water, waste sand and waste residue also seriously pollutes the environment. Moreover, the working conditions of many foundry manufacturers are very poor, which seriously threatens the health of workers. We should enhance the awareness of sustainable development, reduce energy consumption, seriously control the environmental pollution caused by the casting process, pay attention to the regeneration and reuse of casting materials, and gradually change the situation of poor working environment and serious pollution in the casting industry.

In this regard, the government can formulate and improve environmental protection industrial policies, promote the healthy and rapid development of the environmental protection industry, formulate and organize the implementation of environmental protection industrial policies, encourage the development of advanced, economic, efficient and urgently needed environmental protection technologies, processes and equipment (products), and actively arrange major technical research topics in the environmental protection industry, And ensure that the investment in environmental protection technology development reaches a certain proportion to guide the development direction of environmental protection industry. We will further formulate tax policies to encourage the development of environmental protection industry, continue to promulgate the daily record of encouraging the development of environmental protection factory and its corresponding policies and measures, improve the preferential tax reduction and exemption policies for comprehensive utilization of resources, and further strengthen the implementation of the policies. Improve the sewage charging standard of foundry manufacturers, make the sewage charging reach a reasonable level, and mobilize the enthusiasm of foundry manufacturers to control pollution. Where conditions permit, special funds for the development of environmental protection industry shall be established to focus on supporting the development of environmental protection industry.

4.Optimize the layout of foundry manufacturers

By means of merger, reorganization and separation, a number of large-scale and efficient large-scale foundry manufacturers and “specialized, refined and special” small foundry manufacturers will be formed as soon as possible, so as to improve the production concentration and specialization of foundry manufacturers in China and establish advantages in market competition. Specialization is the natural product of the deepening development of market economy. According to the current situation of China’s foundry industry and with the help of international experience, its structural adjustment should develop towards specialization. The specialization mentioned here is not a simple centralized production of castings (such as the specialization in China during the planned economy period), but a specialization conducive to market competition in the environment of market economy. Such as specialization divided by casting type, alloy type or process method. Specialization is the “four sameness” of products, that is, “the same size, the same material, the same wall thickness and the same complexity”. Taking sand casting as an example, castings of the same size, wall thickness, material and complexity are organized to be produced in one foundry, or investment casting plant, die casting plant, etc. Specialization is conducive to improve the technical level, realize mechanized automation and intelligent production, improve product quality, reduce production costs and improve benefits.

Due to the above advantages of specialization, it is bound to be conducive to the improvement of the market competitiveness of foundry manufacturers, the expansion of the market and the expansion of product batch. Specialization does not necessarily require the construction of large factories. For China, in addition to foundries in automobile, internal combustion engine, tractor and other industries, it is a desirable way to establish a large number of specialized small foundries with the advantages of capable personnel, flexible operation, fast decision-making speed and strong adaptability according to the principle of specialization. Some difficulties existing in small foundries, such as the source of funds and business environment, can be solved through cooperation and the establishment of a network of small foundries. Weichai foundry, which enjoys a reputation for providing Engine Castings, is a specialized company with engine castings as its main products. The person in charge said that the improvement of the degree of specialization has made the foundry obtain unprecedented development, and the production scale of the foundry has doubled for four consecutive years.

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