Casting industry access conditions are expected to be released recently

Industry sources pointed out that the implementation of access management is conducive to the healthy development of the foundry industry, but also to promote energy-saving emission reduction specific measures.

“Access Conditions” is mainly aimed at small enterprises that are “scattered, disordered, weak, and poor”. Most of these enterprises are backward in manufacturing technology, high in energy consumption, low in product quality, and lack of investment in environmental protection equipment. The entry rule includes ten items. The requirements for the production equipment of enterprises are that the smelting part must be equipped with smelting equipment and refining equipment that match the production capacity, such as electric furnaces, medium frequency induction furnaces, cupola furnaces, AOD, VOD, and LF furnaces. The other parts of the foundry shop must be equipped with equipment that matches the production capacity, such as molding, core making, sand processing, and cleaning. Companies that use sand casting processes must be equipped with old sand reclaiming equipment, and waste sand from sand casting companies must be recycled for recycling.

Access conditions have made stringent arrangements for the survival of enterprises. Especially in the eastern first-tier cities and scenic spots, nature reserves and water sources and other areas that require special protection, it is strictly forbidden to build or expand the foundry. According to the requirements of the competent authorities, by 2015, the number of foundry companies should be reduced from 30,000 in the initial period to about 20,000, and by 2020 they should be reduced by 10,000 and the number of enterprises should be controlled within 10,000.

With the withdrawal of small businesses, market orders will be obtained by other powerful leading companies, which will help these companies increase their investment in R&D and further increase their profitability. In the A-share market, leading companies include Dalian Heavy Industry and China First Heavy Industries.