2015 Metalcasting Industry Roadmap...

The Philippine Metalcasting Industry Competitiveness

RoadmapLemuel N. Apusaga, DOST-MIRDC

Introduction to metalcasting

Metalcasting is the process of pouring molten metal into a mold containing a cavity of the desired shape; The most direct and cost effective route from design of a part to its production (CTIF).

(Movies)

Present in almost every sector of the economy

• Used in 90% of all manufactured durable goods and all manufacturing machinery

• Produce complex shapes with internal cavities and hollow sections

• Very large parts can be produced in one piece

• Can utilise materials that are difficult or uneconomical to process by other means

Casting productsTypes of alloys

and availability in the Philippines

ApplicationsCasting Processes and Availability in

the PhilippinesCast Irons

Grey cast iron

White cast irons

Ductile irons

Compacted graphite irons

Malleable irons

Engine blocks

Automotive under-chassis components

Pipe fitting, municipal castings

Machine tools frame and bodies

Pumps, valves, motor bodies

Milling rolls

Sand casting

Lost foam casting

Automated molding system




the PhilippinesSteels

Low alloy steels

High alloy steels

Industrial pumps for corrosive applications

High impact and wear applications for mining, cement

Food grade applications in food and pharmaceuticals

Components for defence such as guns and rifles

Medical and dental instruments and implants

Aerospace castings

Sand casting

Investment casting




the PhilippinesAluminum Automotive components such as

wheels and engine components

Motorcycle components

Electronic components

Aerospace components

*majority from Japanese PEZA-located companies

HPDC

Permanent mold casting

Lost foam casting




the PhilippinesCopper Water faucets, water meters, valves

and fittings

Automotive components

Bearings

Decorative and art works

Sand casting

Investment casting




the PhilippinesMagnesium

Nickel alloys

Titanium alloys

Cobalt alloys

Electronics

Aerospace castings

Corrosion and high temperature applications

Special industrial and military

Biomedical applications

HPDC

Investment casting

The Philippine metal casting industry

• Approximately 80 non-PEZA located foundries and 30 PEZA-located foundries, die-casters

• Philippine Metalcasting Association, Inc. (PMAI) with 52 member foundries

• DOST-MIRDC, R&D and technical support to metalcasting industry

• UP, Mapua and MSU-IIT, offering allied foundry courses, BS Metallurgical Engg, BS Materials Engg

The Philippine metal casting industry

• Dwindling production

• ~898,644 tons in 1996

• ~40,000 tons in 2012

• Thailand has 304,100 tons in 2009

• Closing foundries

• 195 foundries in 2003

• less than 100 foundries in 2015

Characteristics of the metal casting industry

• Multi-disciplinary

• mechanical engineering, CAD, Patternmaking, machining, metallurgical engineering, materials engineering

• Wide range of plant configuration

• patterns, molds, melting, alloys, sizes, quantity

• plants are designed for a certain alloy, moulding type, size range and quantity

Characteristics of the metal casting industry

• Dynamic

• products and production processes changes with technology

• products are being phased out while new applications are constantly being introduced

• B2B

• variations (and high competition) in quality, specifications and requirements, cost and lead-time and delivery requirements

• products changes with type of businesses

• SMEs

• limitations on technology, finance, business environment (support)

Crafting of the roadmap

• Based on the horizontal concerns and measures for the manufacturing industry roadmap

Major Area Major Issues and Constraints

Infrastructure and logistics

High cost and unpredictability of powerHigh cost of domestic shipping

Governance and regulation

Smuggling, corruption, bureaucracy/red tapeLack of streamlining/automation of interrelated proceduresSME development Access to finance, technology upgrade, inability to comply with product standards and regulations

Human resource development

Lack of skilled workers, training

Innovation Industry-academe linkages, new product development, R&D facilities

Strategies for the metal casting industry competitiveness roadmap

Strategies Rationale and Functions

Establishment of the foundry institute

DOST-MIRDCUP Diliman

• Foundries are SMEs yet the industry is B2B, dynamic, multi-disciplinary, with wide variations in processes

• Market and technology trends, strategic planning and transition

• Unified technology support• New product development, technology

transfer, training and education, innovation, r&d facilities, testing facilities, consultancy, information services

• Development and localisation of sources of raw materials

Foundry institute overview

Possible Programs Development Operation and Sustainability

R & D (strategic, collaborative, contracted)

Based on professional market research findings on the amount and nature of demand; Address the day-to-day needs of the industry as well as strategic goals;

Paid services, so demand are objectively verified; Managed according to business principles and good management practices in service organization; Private sector service design and delivery; Public sector subsidies; Advisory board with representation from PMAI, DTI, SMEP and (one or two industry groups)

Technical consultancy (free, contracted) Education (Short courses, bespoke) Information services (library, publications, market and technology watch)

Technology transfer

Infrastructure (Numerical simulation, rapid tooling and product development, testing and characterization, melting and casting systems)


Strategies Rationale and FunctionsEstablishment of a market development program

Foundry Institute

• The industry is B2B and dynamic

• Products and market trends• Opportunities for new products and/or new

markets• Flow of information between market (prospective

clients) and foundries• Supported by the foundry institute, spearhead

market development by coordinating the required technical assistance, technology, manpower and organisation upgrading, certification and access to finance


Strategies Rationale and FunctionsImprovement of the foundry education system

DOST-MIRDCUP DilimanMSU-IITMapuaTESDA

• Support the technical and skills needs of the Foundry Institute and the industry

• Technical, vocational, foundry skills education and training

• Higher education engineering education enhanced for metal casting

• Advanced laboratories and graduate programs to support product and production processes technology upgrading

The Philippine IPP priority industries and activities

• Manufacturing

• automotive, ship building, aerospace, tool and die,

• Services

• Agribusiness and fishery

• Activities

• Economic and low cost housing, energy, renewable energy, public infrastructure

• Mining

Goals, KPI’s and Targets

Goals and Key Performance Indicators

Targets

Short-term (5 years)

Medium-term(10 years)

Long-term(15 years)

Increased casting production 65,000 tons 105,000 tons 172,000 tons

Increased import substitution 10,000 tons 16,000 tons 26,000 tons

Increased exports 10,000 tons 16,000 tons 26,000 tons

Concepts on SME competitiveness (OECD)

• Competitiveness is embodied in the characteristics of the firm namely:

• The current efficiency and effectiveness of the use of resources

• The willingness and the ability to relate profitability to growth of capacity

• Ability to innovate to improve the technology and organisation and thus improve efficiency and effectiveness

• (Metcalf, Ramlogan and Uyarra, 2003)

Lemuel N. Apusaga

Thank you very much

2015 Metalcasting Industry Roadmap...

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