The manufacturing level of the domestic mold industry continues to improve.
China’s mold market is currently experiencing a period of rapid growth, particularly in the area of plastic and rubber molds, which have seen substantial development. As evidenced by China’s import and export data for molds over recent years, the value of imported plastic and rubber molds far exceeds that of exported molds. To improve China’s import and export situation for plastic molds, it is essential to accelerate the development of domestically produced plastic molds. To this end, we must promptly overcome the two major bottlenecks hindering the development of the mold industry. The first is the insufficient rate of mold standardization, which inevitably leads to extended lead times and makes it difficult for users to replace parts. Low mold standardization also directly restricts specialized division of labor and collaborative efforts within the mold industry, as well as the commercial circulation of molds, thereby limiting their export potential. In 2011, China’s mold standardization and commercialization rates were around 55%, leaving a considerable gap compared to those of developed countries, where commercialization rates typically range from 70% to 80%.
China’s mold market is currently experiencing a period of rapid growth, particularly in the area of plastic and rubber molds, which have seen substantial development. As evidenced by China’s import and export data for molds in recent years, the value of imported plastic and rubber molds far exceeds that of exported molds. To improve China’s import and export situation for plastic molds, it is essential to accelerate the development of domestically produced plastic molds. To this end, we must promptly overcome the two major bottlenecks that are hindering the growth of the mold industry. The first is the insufficient rate of mold standardization, which inevitably leads to longer lead times and makes it difficult for users to replace parts. Low mold standardization also directly restricts specialized division of labor and collaborative efforts within the mold industry, as well as the commercial circulation of molds, thereby limiting their export potential. In 2011, China’s mold standardization and commercialization rates stood at around 55%, leaving a considerable gap compared to the 70%–80% level seen in developed countries.
Some experts believe that another major factor hindering the development of China’s mold industry is the relatively low domestic capability to manufacture high-precision molds. As the plastics industry continues to grow, the development of precision, large-scale, complex, and long-life plastic molds will outpace the overall growth rate. Meanwhile, given that in recent years most imported molds have been precisely engineered, large-scale, complex, and long-lasting, from the perspective of reducing imports and increasing the localization rate, the market share of these high-end domestically produced molds will also gradually expand.
Meanwhile, China’s cost-effective stamping dies have gained considerable popularity in the international market, and domestically produced stamping dies now occupy the second-largest share in China’s total import and export volume of molds. Stamping dies account for 40.33% and 25.12% respectively of the total import and export value of molds, making China one of the key exporters in the global stamping die industry.
The domestic metal stamping die industry in China is steadily catching up with the world’s advanced standards and continuously narrowing the technological gap with developed countries. Many domestically produced precision stamping dies have already matched imported products in key performance indicators, significantly elevating the overall industry standard. Not only have they achieved import substitution, but a considerable portion of these products are now being exported to industrialized countries and regions such as the United States and Japan. Currently, China’s precision stamping dies are actively making their way onto the international stage and participating in global competition.
Although there is still a certain gap compared to developed countries, based on current domestic industry trends, the domestic stamping die industry is poised to catch up and surpass its international counterparts in the coming years. It will become a key driving force behind the development of China’s mold industry, elevating the industry’s overall technological level and propelling it toward higher-end, precision, large-scale, and complex manufacturing. Moreover, mold-making technologies are expected to better embody informatization, digitalization, refinement, high speed, and automation. The ranks of leading backbone enterprises in the industry will continue to expand and play an increasingly significant role within the sector. Meanwhile, public information service platforms will experience even faster growth, with their various service functions and their ability to enhance productivity for small and medium-sized enterprises becoming ever more evident.
In short, for China’s mold industry, there is still a need for continuous effort—focusing relentlessly on technological advancement, quality improvement, and the overall competence of industry professionals—and adopting a variety of approaches to promote the industry’s development. Industry professionals should also actively contribute their ideas and suggestions, working together to do their part for the industry’s future growth. And in the next decade, it is no longer a dream for China to become the world’s mold hub.
There’s new news regarding the sale of ParknShop, a supermarket under Hutchison Whampoa, which has long been shrouded in uncertainty.
Yesterday, news emerged that the well-known private equity firm Carlyle intends to partner with Thailand’s Charoen Pokphand Group (CP Group) in acquiring ParknShop. Carlyle has already appointed Citigroup and UBS as advisors for the deal. Earlier, CP Group Chairman Xie Guomin had indicated that, if the price is right, CP Group would consider acquiring ParknShop. Carlyle joined CP Group in bidding for ParknShop two weeks ago. However, none of the parties involved have yet responded to these reports.
Previously, investment banks estimated that Parkson Retail’s market capitalization ranged from 3 to 4 billion U.S. dollars. Following a series of bidding rounds, the most likely contenders—including Japan’s Aeon, Australia’s Woolworths, KKR, and China Resources Enterprise—have emerged as the frontrunners.
The reporter learned from interviews that among the aforementioned buyers, China Resources Enterprise has just announced that it has reached a final agreement with TESCO to establish a joint venture for integrating their retail businesses in China. Upon completion of the transaction, TESCO will pay China Resources Enterprise HK$1 billion, and another HK$1 billion one year after the transaction is completed. Meanwhile, reports indicate that China Resources Enterprise plans to join forces with TESCO in bidding for ParknShop, though neither party has yet responded to these reports.
On the other hand, if investment giant KKR succeeds in its bid, it will mark KKR’s largest-ever deal in Asia on record by Bloomberg. In 2009, KKR acquired Korea Oriental Brewery for $1.8 billion.
However, just at this moment, Charoen Pokphand Group made an unexpected move. During a media interview while Xie Guomin was attending the Forbes CEO Summit in Bali, he stated that if the price is right, the group would consider acquiring ParknShop, which is under Hutchison Whampoa, to support the development of its subsidiary, Lotus’s, business in mainland China. Lotus’s revealed that it currently operates more than 70 stores across mainland China. A comparison of data by reporters showed that Lotus’s expansion in mainland China has been rather slow in recent years, and its total number of stores has not increased significantly.
In fact, this isn't the first time Charoen Pokphand Group and Carlyle have worked together. In 2010, Carlyle invested $175 million in Charoen Pokphand Group to acquire preferred shares and warrants in Lotus’s Supermarket. Therefore, it makes perfect sense that the two companies are now joining forces again to bid for ParknShop.
Yesterday, the reporter called Ba Jia, Charoen Pokphand, and other relevant parties regarding this matter, but received no response from any of them.
In addition to ParknShop, Hutchison Whampoa may also be preparing to spin off and list its Asian operations of Watsons, another retail asset under its umbrella. Market sources revealed that Hutchison Whampoa plans to spin off Watsons and list it on the Hong Kong main board within the next 12 to 18 months, with an initial fundraising target ranging from US$8 billion to US$10 billion. However, neither Hutchison Whampoa nor Watsons has been willing to comment on this matter.
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