Expanding Automotive Die Casting Overseas
Georg Fischer Automotive and other automotive companies are expanding their factory production in China and Europe. One of the specific industries that is expected to see higher demands in Europe and China is the die casting industry. Die castings are used in a variety of automotive manufacturing processes, and as the demand for automotive products increases in China and Europe, automotive factories will need additional facilities to meet the new demands.
The companies are expecting their production and demand to increase by nearly 40 percent over the next six years, both in China and Europe. This is due to the recovering and growing economies in those areas. Right now, die casting production is less expensive in China and Europe than it is in the United States. Although the United States has placed some tariffs on imported steel products and other metal products manufactured in China, there are still fewer tariffs on die castings that make outsourcing worth it. Most of the companies plan to sell the products directly in China and Europe to car manufacturing companies located in those countries. Selling the products in the same country where they are produced helps prevent import fees and high shipping costs that come from shipping metal parts across the world.
Die castings have become more popular in the automotive industry because die casting is a low-waste metal production process that can produce a variety of complex shapes without expensive production processes. With die casting, it is possible to shape aluminum, steel, and other metals into strong and durable shapes that improve the performance of automotive vehicles. Die casting is less expensive right now than some other processes, such as sand casting and metal forging.