Korean machinery industry is steadily recovering

Abstract Driven by the demand of multinational companies such as Samsung Group, LG Electronics and Hyundai Motor Co., the Korean plastics machinery industry is showing signs of a steady recovery. For example, Dongxin Hydraulic Co., Ltd., one of the best injection molding machine manufacturers in South Korea, said that its sales are now higher than...

Driven by the demand of multinational companies such as Samsung Group, LG Electronics and Hyundai Motor Co., the Korean plastics machinery industry is showing signs of a steady recovery. For example, Dongxin Hydraulics Co., Ltd., one of the best injection molding machine manufacturers in South Korea, said its sales are now higher than before the mid-2008 economic crisis. The company has upgraded its equipment to compete more aggressively with lower-priced Chinese-made machines.
Phillip Kim, executive vice president of Eastcom Hydraulics, based in Busan, South Korea, said its 2010 monthly sales were about $3.5 million, which was higher than the monthly sales of $3 million before the crisis. He said: "With the improvement of the Korean economy, we are now busy. We have been slowly recovering since May 2009. This year we have entered a period of rapid growth." He said that the company had carried out during the crisis. Large-scale layoffs, the number of employees has been reduced from the original 200 to the current 120, while increasing investment to improve production efficiency, and developed a systematic approach to the machine and automatic machinery and other equipment in product design. Integrated together. Kim said: "We are also facing competition from Chinese-made machines. [Ningbo Haitian Plastic Machinery Group] products are everywhere. We no longer sell general-purpose machines."
In an interview at the Korea International Plastics and Rubber Exhibition (KoPlas) in Seoul from March 30th to April 3rd, industry officials shared more comprehensive economic data from the Korean government and said they are working on large-scale international manufacturing in Korea. The demand of enterprises is driving into the recovery track. According to data from the South Korean government, the current rate of production of Korean manufacturers has reached 80.5% (compared with 69% in February in the US), and according to a survey by the Central Bank of Korea, the confidence of manufacturers has returned to The highest level in seven years. Exhibitors are generally optimistic about the prospects, although the optimistic mood is also mixed with concerns about uncertainties in major economies such as Europe and the United States. In addition, whether the won is too strong will weaken the competitiveness of Korean products is also unknown.
HanKi-Yoon, secretary-general of the Korea Plastics Processing Machinery Industry Association in Seoul, said that Korean plastics companies are also facing the threat of rising plastics in their neighboring country, China, so they must work hard to improve quality and broaden the Middle East. Markets such as Southeast Asia and India. Although it is not yet possible to obtain hard data on plastics, Han said that with the improvement of the global economy, the overall performance of the Korean plastics machinery industry is good, but may not have completely gone out of recession. He said that the industry's sales during the crisis declined by about 15%, and may have recovered by about 10 percentage points, still about 5% lower than the pre-crisis level.
Despite this, there is an overall optimism in this exhibition.
EngelMachineryKoreaLtd., which has an injection molding machine factory in South Korea, said that in the past three months, the plant's business has grown exponentially, said Robert Bodingbauer, president of the Korean branch in Pyeongtaek. He said that due to the significant decline in export markets such as China and Southeast Asia, Engel's Korean plant was struggling in 2009, but “helping us survive the crisis” is the Korean domestic market that has never really declined, even in the lowest point of the global economic crisis. The same is true. In an interview at the show, he said: "Last year, Korea's domestic market has already shown its vitality. Korean companies have not stopped investing, so it has not affected the growth of the market. The situation here is much better than Japan and Europe." According to his estimation, The decline in the Korean machinery industry is about 10%, much lower than Europe's 30-40% and Japan's 50%. He attributed the relatively good performance of the Korean market to the achievements of large multinational companies in the global automotive and consumer electronics markets. He said that Samsung Group, the world's largest manufacturer of computer chips, televisions and flat panel displays, and the world's second-largest mobile phone manufacturer, has been Engel's largest customer in Schwertberg, Austria for the past few years.
He said that the Samsung Group has invested heavily in the addition of the EngelCombi series of presses to its LCD TV manufacturers around the world. Samsung has re-invested in the new design of its TV set, which proves that this design is popular among consumers. . He said: "Korean products have been very popular in Europe and the United States. Due to their large share in the global market, they have not been significantly affected by the [economic crisis]."
Some people think that the rise of Korean industry depends to a certain extent on the close ties between its large-scale industrial enterprises (commonly known as chaebols) and the government. These companies seem to have a closer relationship with the supply chain than some other countries.
ShinYongJin, sales manager at KraussMaffei's office in Gunpo, South Korea, said that, for example, LG and Samsung sometimes help suppliers buy higher-quality molding machines and then deduct discounts based on machine costs from the products they produce. He said that Korean molders may not have enough funds to buy equipment, and LG and Samsung, which are financially strong, can help them to get the high-quality products they want suppliers to offer.
For example, recently, Samsung Group announced that its 2009 profit surged by 75%, a five-year high, while Hyundai Motor Co. and its subsidiary Kia Motors was promoted to the world's fourth-largest automaker last year.
WoojinSelexCo.Ltd., another large injection molding machine manufacturer in South Korea, said its market grew steadily in the first quarter of this year, with most of its customers being suppliers to large multinational companies in Korea. YouJongHyuck, Woojin's overseas sales manager, said that the company's factory is busy, with a monthly production of about 100 plastic presses, and the number of large-tonnage presses supplied to Korean automakers is increasing. He said: "These days, our production workers are working overtime to work." You said that Woojin is headquartered in Incheon and last year set up its first direct sales office in Chennai, India, and regarded India as an important future. market.
A number of industry executives in Japan said they are increasing their focus on South Korea, the 13th largest economy in the world, after the sharp decline in domestic machinery production in 2009. Okawa Nobuaki, national and East Asian sales assistant manager of Nissei ASB Machinery Co., Ltd., a blow molding equipment supplier in Nagano, Japan, said: "The Korean market is very attractive for Japanese companies."
According to Japanese plastics machine manufacturer SodickPlustech Co. Ltd., the Korean molding market now has strong demand in the higher end areas of micro-connectors, electrical components for automotive components and LED lighting system components. Shigeri Fujimaki, executive general manager of Sodick, based in Yokohama, Japan, said that Korean companies have also received strong government support.

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