Final Paper PVD Market Research in South Koreainfoskorea.com/admin/attachfile/PVD_Market(South_Korea).pdf · Korea tools market usually classified by diamond tools, HSS (high speed

Final Paper

PVD Market Research

in South Korea

July 27. 2005

Korea Business Services Ltd.

Business Consulting Firm for Europe & Korea 1

Contents I. Introduction

1. Objective 2. About PVD Market Research

II. PVD Markets 1. Tools 1) World Market of Tools

2) Korea Market of Tools 3) Korea Production of Tools 4) Korea Demand for Tools 5) Export & Import of Tools A. Export B. Import 6) Shank Tools and Inserts 7) Manufacturers of Shank Tools and Inserts A. Shank Tools B. Inserts C. Punches and Pins

2. Molds & Dies 1) Outline of Molds & Dies 2) World Molds & Dies Industry

A. Briefs of the World Molds & Dies B. Japan’s Export & Import C. China’s Export & Import

3) Korea Production of Molds & Dies 4) Korea Demand of Molds & Dies 5) Export and Import of Molds & Dies A. Export B. Import 6) Recent Trends of Export and Import 7) Manufacturers of Molds & Dies

3. R & D Organizations


III. PVD Market Analysis

1. Review of the PVD Market in Korea 2. Analysis of the PVD Market

1) Markets of Tools and Molds & Dies 2) Comparison of each industry and the PVD market

A. Shank Tools and Inserts B. Molds & Dies

3. Prospects for the PVD Market 4. PVD Coating Service Providers

IIII. Conclusions


I. Introduction

1. Objective

This market research mainly identifies the actual market environment in South Korea with regard to PVD industry and offers sufficient information to help Cemecon evaluate its market potential and make successful plans in Asia.

Here are the two objectives of the market research in South Korea.

(1) To identify new opportunities in the main business areas of Cemecon such as Shank Tool, Cutting Inserts and Molds and dies etc.

(2) To provide industry trend and market details of PVD (Physical Vapor Deposition) machines by assessing a market’s competitive dynamics in South Korea

2. About PVD Market Research

PVD (Physical Vapor Deposition) consists of thermal evaporation, ion plating, and sputtering. The ion plating PVD system is used for surface-hardening of metal components in Korean commercial market while the others, thermal evaporation and sputtering, are usually applied for an academic research. The general PVD market surveys done in South Korea so far have been more focusing on the area of Ion plating relatively. Here we will deal more specifically with Ion plating.

Thermal Evaporation

Sputtering

Ion Plating

P V D


In spite of several sporadic efforts to make a systematic approach to the Korea PVD market, there has not been any satisfying methodical survey based on accurate database carried out within South Korea. So it was hard to grasp a whole picture of PVD market in South Korea.

This research made two basic ways in collecting data figures. One is to collect all related open data by looking into industry and organizations and the other is to make a direct visit to each company and have an interview with an expert in Korea PVD market. Thus, it should be noticed that some figures are conservative estimates.

Here is the whole chart of PVD coating industry. This market research will cover several parts of the industry such as Molds & Dies, Tools and shank tools & inserts under the catalogue of tools.

PVD Coating

Molds & Dies Tools Punches Hobs Automobile

Components

Diamond

Tools

HSS & Super Hard

Alloy Tools

Hand Working

Tools

Electro-Powered

Tools

Cutting Tools

Shank Tools Inserts SawsCutters

Others

Drills Endmils Taps


II. PVD Markets

1. Tools

1) World Market of Tools

The world market of tools is reported to reach about 38 billion Euros as of year 2004 and be divided into two sectors. One is for high technology and the other is about price competition.

The international market is mainly lead by some advanced countries such as Germany, Japan, USA and Sweden and they takes more than 50% of the world market share. The advanced nations have been leading R&D in the area of high-precision tools for cutting hard materials and multi-functional, high-performance, and high quality tools. They have shown their strong advantages in the high technology market.

On the other hand, it is also in progress that buying tools in the world are highly affected by price. Less developed countries like Korea, China and Taiwan in contrast are more related to lower price tools and they are making efforts to produce tool in much lower prices.

High-grade tools of advanced countries have been showing gradual decrease in demand due to their weakness in price competition while lower price producers in Korea and China have been in a great performance recently. However, as the price competition depends, Korea also seems to lose its competitiveness against tools of made-in-China.

World Demand for Tools (2004)

USA Germany Japan Demand (million Euros) 11,050 5,100 3,825

Portion (%) 28.9 13.3 10.0

China Korea etc. sum 1,870 1,020 15,385 38,250

4.8 2.7 40.9 100

* Data from Korea Tools Industry Cooperative


USA Germany Japan China S. Korea etc.

38,250 million Euros as of 2004

2) Korea Market of Tools

Korea has the market share of 2.7% in the world market of Tools. Korean manufacturers, which make medium price tools, are competing in the Korean market with manufacturers of Germany, USA, and Japan which produce expensive high quality tools, and those of China and Taiwan which produce cheap tools.

In the past, Korea tool makers cared about cheaper tools regardless of their quality on basis of strong demand of cheaper tools in Korea. However, recently the market trend has been gradually changing. Most recent buyers in Korea have started requiring affordable quality of tools more than just cheaper priced tools and at the same time Korean tool manufacturers begun to put their more efforts in developing high value added tools competing with imported goods.

The total amount of Korea production of tools in 2004 was increased by 13% of 2003’s to 1,346 million Euros, Korea demand by 2.6% to 1,201 million Euros, export by 29.2% to 726 million Euros, import by 6.5% to 581 million Euro. For 2005, the Korean market of tools is also expected to continuously increase.


Production & Sales of Tools

[million Euros] 2003 2004 2005 [E]

Production 1186.8 1346.1 1518.6 Korea Demand 1170.6 1201.2 1304.4

Export 562.1 726.2 853.2 Import 545.8 581.3 639


0

200

400

600

800

1000

1200

1400

1600

2003 2004 2005 [E]

Production Domestic Demand Export Import

millio

n E

uro

s

Korea tools market usually classified by diamond tools, HSS (high speed steel) & super hard alloy tools, hand working tools, electro-powered tools and others.

As of 2004, HSS & super hard alloy tools took the largest part (59.6%) of Korean tools market and then diamond tools (27.1%), electro-powered tools (6.2%) and hand working tools (5.5%) followed.

Following table shows the number of manufacturers that produce tools in Korea.


Components of Tools Market (2004)

Other Tools

21.6 (1.6%) Electro-Powered Tools

83.4 (6.1%)

Diamond Tools

364.9 (25.8%) Hand Working Tools

74.3 (5.4%)

1,346 (100%)

million Euros

HSS & Super Hard Alloy

Tools

801.8 (59.1%)


The Number of Tools Manufacturers (2004)

Manufacturers Number of Manufacturers

Diamond Tools 150

HSS(high speed steel) & Super Hard Alloy Tools

208

Hand Working Tools 28

Electro-Powered Tools 12

Other Tools 38

sum 437


Other Tools

38 Electro-Powered Tools

12

Diamond Tools

150 Hand Working Tools

28

437

HSS & Super Hard

Alloy Tools

208

3) Korea Production of Tools

The production of diamond tools in Korea grew from 320 million Euros in 2003 to 364.9 million Euros, and is also expected to continue the growth to 407.4 million Euros in 2005.

HSS & super hard alloy tools, the biggest part of tools market share, showed the production growth from 707.6 million Euros in 2003 to 801.8 million Euros in 2004, resulting in an expectation of the continuous increase (913 million Euros) in 2005.

Hand working tools and electro-powered tools also have the similar trend of production from 2003 to 2004 and 2005.


0

200

400

600

800

1000

1200

1400

1600

2003 2004 2005(E)

Domestic Production of Tools

millio

n E

uros

Korea Production of Tools’ Components

[million Euros]

Items / Year 2003 2004 2005(E)

Diamond Tools 320 364.9 407.4

HSS & Super Hard Alloy Tools

707.6 801.8 913

Electro-Powered Tools 66.2 74.3 82.1

Hand Working Tools 73.4 83.4 82.1

Other Tools 19.7 21.6 24

Sum 1,186.9 1,346 1,518.6


0

50

100

150

200

250300

350

400

450

2003 2004 2005(E)

Domestic Production of Diamond Tools

millio

n E

uro

s


0

200

400

600

800

1000

2003 2004 2005(E)

Domestic Production of HSS & Super Hard Alloy Tools

millio

n E

uro

s

0

10

20

30

40

50

60

70

8090

2003 2004 2005(E)

Domestic Production of Hand Working Tools

millio

n E

uro

s

0

20

40

60

80

100

2003 2004 2005(E)

Domestic Production of Electro-Powered Tools

millio

n E

uro

s


0

5

10

15

20

25

2003 2004 2005(E)

Domestic Production of Other Tools

millio

n E

uro

s

4) Korea Demand for Tools

Small increase of Korea demand for tools in 2003 and 2004 was found but the demand

will be rebound in 2005. The following table and graph shows the change of Korea demand for

tools from 2003 to 2005.

Korea Demand of Tools [million Euros]

Items / Year 2003 2004 2005(E)

Diamond Tools 185.9 222.6 241.8

HSS & super hard alloy tools

699.9 704.9 772.6

electro-powered tools 64.1 69.5 72.7

Hand working tools 186 165 173.7

Etc. 34.7 39.3 43.7

sum 1,170.5 1,201.2 1,304.4



1100

1150

1200

1250

1300

1350

2003 2004 2005(E)

Domestic Demand of Tools

milli

on E

uros

0

50

100

150

200

250

2003 2004 2005(E)

Domestic Demand of Diamond Tools

millio

n E

uro

s


660

680

700

720

740

760

780

2003 2004 2005(E)

Domestic Demand of HSS & Super Hard Alloy Tools

millio

n E

uro

s

58

60

62

64

66

68

70

72

74

2003 2004 2005(E)

Domestic Demand of Hand Working Tools

millio

n E

uro

s

150

155

160

165

170

175

180

185

190

2003 2004 2005(E)

Domestic Demand of Electro-Powered Tools

millio

n E

uro

s


0

5

10

15

20

25

30

35

4045

2003 2004 2005(E)

Domestic Demand of Other Tools

millio

n E

uro

s

5) Export & Import of Tools

A. Export

In 2004, the export of tools increased by 40.9% compared to that of 2003. The export to USA, Japan, Germany, India, Malaysia, and Indonesia was highly increased while the export to Thailand and Netherlands showed a little decrease. For the items of tools, diamond tools showed 18.3% increase, HSS & super hard alloy tools 58.5% increase, and electro-powered tools 57.9% increase. Detail data can be shown in the following table and graphs.


0

100

200

300

400

500

600

700

800

900

2003 2004 2005(E)

Export of Tools

millio

n E

uro

s

Export of Tools’ Components [million Euros]

Items / Year 2003 2004 2005(E)

Diamond Tools 133.6 158.1 189.4


243.9 386.6 472.1

Electro-Powered Tools 65 74.2 87.9


Other Tools 6.6 8.2 9.5

Sum 483.8 681.9 823.8



0

100

200

300

400

500

2003 2004 2005(E)

Export of HSS & Super Hard Alloy Tools

millio

n E

uro

s

0

10

20

30

40

50

60

70

8090

2003 2004 2005(E)

Export of Hand Working Tools

millio

n E

uro

s

0

10

20

30

40

50

60

70

2003 2004 2005(E)

Export of Electro-Powered Tools

millio

n E

uro

s


0

2

4

6

8

10

2003 2004 2005(E)

Export of Other Toolsm

illio

n E

uro

s

B. Import of Tools

Tools import in 2004 was totally increased to 545.9 million Euros by 16.2% compared to that of 2003 and the trend of growing import is expected to continue in 2005. Cheap tools from China and Expensive tools from Europe and USA made distinguished increase respectively.

Detail data and trend were shown in the following table and graph.

Import of Tools [million Euros]

Items / Year 2003 2004 2005(E)

Diamond Tools 18.3 24.5 29.6


237.2 295.5 336.5

Electro-Powered Tools 63.2 69.6 78.8


Other Tools 19.5 24.8 28.5

sum 469.9 545.9 617



480

500

520

540

560

580

600

620

640

2003 2004 2005(E)

Import of Toolsm

illio

n E

uro

s

0

5

10

15

20

25

30

2003 2004 2005(E)

Import of Diamond Tools

millio

n E

uro

s


0

50

100

150

200

250

300

350

2003 2004 2005(E)

Import of HSS & Super Hard Alloy Toolsm

illio

n E

uro

s

0

10

20

30

40

50

60

70

80

2003 2004 2005(E)

Import of Hand Working Tools

millio

n E

uro

s


125

130

135

140

145

2003 2004 2005(E)

Import of Electro-Powered Tools

millio

n E

uro

s

0

5

10

15

20

25

30

2003 2004 2005(E)

Import of Other Tools

millio

n E

uro

s

6) Shank Tools and Inserts

In the HSS & super hard alloy tools, cutting tools take 46% (344 million Euros) and are the main areas of application for PVD (ion plating) coating. The first following figure shows that.

There are also several parts in the cutting tools such as shank tools, inserts, saws, cutters and reamers. Inserts are said to be the largest part (about 45%) in cutting tools, the second largest part is shank tools (36%), the third is saws (8%), cutters are the fourth (7%), and reamers are the last (4%). See the second figure.

Shank tools consist of taps, drills, HSS mills and carbide mills and they are usually PVD (ion plating) coated for prolong the life of tools. Inserts also need the


coating for the same reason. Shank tools and inserts are ones of the major application areas for PVD (ion plating) surface hard coating.

Cutting Tools in HSS & Super Hard Alloy Tools

Cutting Tools

344million Euros (46%)Other Tools

457.8million Euros (54%) HSS & Super Hard

Alloy Tools

801.8 million Euros

(100%)

Dies, Pressing Tools,

Stamping Tools, Punching

Tools, Brace Bit, Die

Headers, Plate, rod, …

* Data from Korea Tools Industry Cooperative & Korea International Trade Association


Elements of Cutting Tools

Saws 27.5 million Euros (8%)

Reamers 13.8 million Euros (4%)

Cutters

24.1 million Euros (7%)

Inserts

154.8 million Euros

(45%)

Cutting Tools

344million Euros

(100%)

Shank Tools

123.8 million

Euros (36%)

* Data from YG-1

Customized

Production

37.1 million Euros

(30%)

Shank Tools

123.8million Euros

(100%)

Mass Production

86.7 million Euros

(70%)

* Data from YG-1


7) Manufacturers of Shank Tools & Inserts There are many manufacturers of shank tools and inserts in Korea. The number of major companies whose employees are more than 50 is small but they have most of market shares in Korea, while other small companies are so many that it’s hard to be considered. Many companies shown in the following produces both shank tools and inserts and are classified by their major products.

A. Shank Tools Manufacturers

1.YG-1

Address

Tel./Fax.

Incheon Head Office 378, Cheongcheon-Dong, Pupyoung-Gu, Incheon,Korea TEL:+82-(32)526-0909 /FAX:+82-(32)526-4373 Seoul Branch 52-357, Koduk-Dong, Kuro-Gu, Seoul, Korea(#401,PoongJung B/D) TEL: +82-(55)261-0984 /FAX: +82-(55)261-0986 Ansan Plant 673-15, Sungkok-Dong, Ansan-City, Kyonggi-Do, Korea TEL: +82-(31)499-9545 /FAX: +82-(31)498-7971 Kwangju Plant 621-4 Dochun-Dong, Kwangsan-Gu, Kwangju-City, Korea TEL: +82-(62)951-9212 ./FAX: +82-(62)951-9222 Changwon Branch 71-2, Sangnam-Dong, Changwon, Kyongnam, Korea(#304-2, YangJi B/D) TEL: +82-(55)261-0984 /FAX: +82-(55)261-0986

CEO Ho-Keun, Song

Website http://www.yg1.co.kr

E-mail [email protected]

No. of Employees 590

Main Products Endmills, Drills, Taps, Rotary Burrs, Spade Drills

Remarks

YG-1 is the biggest company in the area of mass production of shank tools and it also produces special shank tools for customers. About 70% of its turnover comes from mass


http://www.yg1.co.kr/

mailto:[email protected]

production of shank tools by standard ways and 30% comes from the special shank tools ordered by customers. YG-1 has focused on export of their goods to other countries, resulting in 69% of their turnover coming from the export. In spite of their big production magnitude, YG-1 dose not have its own in-house PVD (ion plating) coating system for shank tools. So it gets PVD coating service from Balzers Korea for 70% of its products. The amount of cost for the coating service is said to be about 16 million Euro annually. It is trying to contact PVD coating service companies overseas to get PVD coating services at the lowest cost. At the same time, to save the cost due to PVD job coating, YG-1 has a plan to purchase several PVD (ion plating) systems in near future and run them for its products.

Turnover & Export [million Euros]

2001 2002 2003 2004

Turnover 59.5 53.5 68.9 84

Export 33.9 29.8 45.5 50.4

* Data from YG-1

0

10

20

30

40

50

60

70

80

90

2001 2002 2003 2004

turnover export


Location of YG-1

2.Korea OSG

Address

Tel./Fax.

Head Office

358-48 Galsan-Dong Dalseo-Gu, Taegue, 704-170,Korea

Tel: 053-583-2000/Fax: 053-583-2233

Seoul Branch

310 Ansung Gigye Gonggu Sangga A, Shindorim-Dong Guro, Seoul,

152-070, Korea

Tel: 02-2678-8301/Fax: 02-2678-8382

CEO Gae Hark, Im

Website http://www.osg.co.kr



Main Products Taps, Endmills, Dies

Remarks


http://www.osg.co.kr/


Korea OSG is a manufacturer of cutting tools including shank tools and dies. Korea OSG has 3 in-house PVD coating systems for its cutting tool products. And it has a plan to purchase additional 5 in-house PVD coating systems in 1 years.

Turnover of Korea OSG (million Euros)

2003 2004

turnover 32 40.8

* Data from interview with staffs from Korea OSG

0

10

20

30

40

50

2003 2004

turnover

3.Taehwa Mechanics

Address

Tel.

Fax.

Head Office/Factory

604-29 Namsan-dong, Changwon, Kyungnam, 641-090, Korea

Tel: 055-261-2141/Fax: 055-282-0030

Seoul Office

4th F Youngdong B/D, Nonhyun-dong, Gannam-gu Seoul, 135-010, Korea

Tel: 02-544-1223/Fax: 02-511-3516

CEO Nam Su, Shin

Website http://www.thtool.co.kr



Main Products Drills, Taps, Endmills, Reamers, Milling Cutters

Remarks


http://www.thtool.co.kr/


4.Dragon Precision Tools Co. Ltd.

Address

Tel.

Fax.

Head Office/Factory

31 Block 11 Lot Namdong-Gongdan, 610-10 Namchon-dong Namdong-

gu, Incheon, Korea

Tel: 032-814-1540 /Fax: 032-814-5381

CEO Yong Bae, Jeon

Website http://www.dragon.co.kr



Main Products Gear Hobs, Gear Cutters, Endmills, Gears

Remarks

In-house PVD coating system equipped

5.Hankook Special Tools Co., Ltd.

Address

Tel.

Fax.

Head Office/Factory

5th street 1 Yangpyeong-dong, Youngdeungpo-gu, Seoul, Korea

Tel: 02-2634-0101~5/Fax: 02-678-8221

Busan Office

Tel: 051-319-0808/Fax: 051-319-0810

CEO Byung Cheol, Choi

Website http://www.ores.co.kr


No. of Employees 60

Main Products Drills, Cutters, Reamers, Special Tools

Remarks


http://www.dragon.co.kr/


http://www.ores.co.kr/


6.GUHRING KOREA

Address

Tel./Fax.

895 Munbong-ri Myunchun-myun Danjin, Chungnam, 343-880, Korea

041-356-7676/Fax:041-356-7678

CEO Jang Hyoi, Heo

Website http://www.guhring.co.kr


No. of Employees 53

Main Products Endmills, Taps, Drills, Reamers, Coated Special Tools

Remarks

The Korea branch of Guhring in Germany.

Guhering Korea built a coating plant for PVD on December 1996 and has since carried

out PVD coatings.

B. Inserts Manufacturers

1.TaeguTec

Address

Tel.

Fax.

Seoul Office

A-805 Jungang Yutong-danji, 1258 Gurobon-dong Guro, Seoul, Korea

Tel: 02-6679-8909/Fax: 02-6679-7909

Head Office/Factory

304 Yonggye-ri Gachang-myun Dalsung, Taegue, Korea 712-860

Tel: 053-760-7114/Fax: 053-768-8055

CEO Moses Sharon

Website http://www.taegutec.co.kr



Main Products Super Hard Alloy Powders, Inserts, Cutting Tools, Milling Tools,

Cutting Tips

Remark

TaeguTec is a member of IMC international group and the biggest company in Korea that produces carbide powders and cutting tools such as inserts and shank tools. The main products of TaeguTec are carbide powders, the raw material for super hard alloy tools, and


http://www.guhring.co.kr/


http://www.taegutec.co.kr/


inserts. The shank tools produced by TaeguTec take a relatively small part of the total amount of Turnover.

TaeguTec has in-house PVD coating systems for its products.

Turnover & Net Profit of YG-1 (million Euros)

2000 2004turnover 95 160net profit 25.7 40

* Data from internal source

0

20

40

60

80

100

120

140

160

2000 2004

turnover net profit

2.KORLOY

Address

Tel.

Fax.

Head Office

1606-2, Seocho-Dong, Seocho-Gu, Seoul, Korea

Tel: 82-2-522-3181 /Fax: 82-2-522-3184,3474-4744

Cheongju Factory

53-16, Songjeong-Dong, Hungdok-Gu, Cheongju, Chungchungbuk-Do, Korea

Tel: 82-43-262-01411 /Fax: 82-43-262-0146

Jincheon Factory

67-1, Guanghaewon-Ri,Guanghaewon-Myon, Jincheon-Gun, Chungchungbuk-Do, Korea

Tel: 82-43-535-0141/Fax: 82-43-535-0144


CEO Gae Hark, Im

Website http://www.korloy.com/


No. of

Employees 410

Main Products Carbide Powders, Inserts, Shank Tools, Boring Bars

Remarks

KORLOY Inc. is the leading carbide cutting tool manufacturer in Korea. Founded in 1966, with its head office located in Seoul, KORLOY has factories in Cheongju and Jincheon. Exporting its products to more than 50 countries in the world, KORLOY has the nation-wide sales network with sales offices in the seven big cities in Korea. Main products are carbide powders and inserts, and shank tools are a relatively small part of the target market of KORLOY. KORLOY has its own PVD (ion plating) surface hard coating systems for its products.

Turnover & Capital of KORLOY [million Euros]

1990 1995 2000 2004 turnover 12.9 22.9 39.6 56.8 capital 18.2 33.4 45.5 70.3

* Data from KORLOY

0

10

20

30

40

50

60

70

80

1990 1995 2000 2004

turnover capital


http://www.korloy.com/


3.Ssangyong Materials

Address

Tel.

Fax.

Seoul Office

14th Floor Ssangyong Building, 24-1 2nd street Joe-dong Jung-gu, Seoul, Korea

Tel: 02-2270-5160/Fax: 02-2270-5434

Head Office/Factory

1-85 Wolam-dong Dalseo-gu, Taegue, Korea

Tel : 053-580-4221/Fax: 053-580-4239

CEO Byung Gi, Kim

Website http://www.ssym.com



Main Products Inserts, Tips, Ceramic Tools

Remarks

4.Korea SANDVIK

Address

Tel.

Fax.

Head Office

5th floor Kyobo Securities Building, Yeoeuido Youngdeungpo-gu Seoul, Korea

Tel: 02-369-0864 /Fax: 02-369-0766

Factory

3Na-405 Sihwa Gongdan, Jungwang-dong Siheung, Kyunggi, Korea

Tel : 031-496-4810/Fax: 031-433-1694

CEO Anders Haggland

Website http://www.coromant.sandvik.com/kr



Main Products Inserts, Drilling Tools, Milling Tools, Boring Bars, Tips

Remarks

The Korea Branch of International SANDVIK Group

5.NTK Cutting Tools Korea Co., Ltd.

Address Head Office/Factory


http://www.ssym.com/


http://www.coromant.sandvik.com/kr


Tel.

Fax.

680-14 Gojan-dong Namdong-gu, Incheon, 405-310, Korea

Tel: 032-815-6763/Fax: 032-815-6762

CEO Majaoka Seige

Website http://www.kntktool.co.kr


No. of Employees 50

Main Products Inserts, Tips, Ceramic Tools

Remarks

NTK Cutting Tools Korea was established from the limited partnership with Japanese Ceramic Company, NTK.

6.MAPAL HITECO

Address

Tel.

Fax.

Head Office/Factory

1 Na 502 Shihwa Industrial Complex, Jeongwang-dong

Shiheong, Kyunggi, 429-450, Korea

Tel: 031-499-0959/Fax: 031-499-0956

CEO Ju Seok, Park

Website http://www.hiteco.co.kr


No. of Employees 35

Main Products Inserts, Tips, Bites, Reamers, Endmills, Drills

Remarks

C. punches, Pins and Dies

1.TONGNAM PRECISION CO.,LTD.

Address

Tel./Fax.

1054-6, SINGIL-DONG, ANSAN-SI, KYUNGGI-DO, 425-120, KOREA

82-31-491-0375/82-31-491-8711

CEO

Website http://tnp.koreasme.com


http://www.kntktool.co.kr/

mailto: [email protected]

http://www.hiteco.co.kr/


http://tnp.koreasme.com/



Main Products Punches, Pins, Rolling Dies. Trimming Dies

Remarks

Turnover 4.6 million Euros

Asset : 5.8 million Euros

2.Shin Saeng Precision Co,. Ltd.

Address

Tel./Fax.

301-22 Doksan 1 dong, Keumchun-gu, Seoul, 153-011, Korea

02-866-7101/02-866-7109

CEO Yong Sik, Choi

Website http://www.sstools.co.kr


No. of Employees 60

Main Products Dies, Punches, Pins, Saws, Super Hard alloy,

Remarks



http://www.sstools.co.kr/


2. Molds & Dies 1) Outline of Molds & Dies

The term of “Molds & Dies” means the frames that make it possible to mass-produce identical goods and parts.

Molds & dies can be classified to “press” and “ejection” according to materials. Based on the use, dies have 2 areas of “for press” and “for forging” and molds can be divided to roughly 5 parts of “for plastic”, “for casting”, “for glass”, “for rubber” and “for ceramics”. Among them, dies for press and molds for plastic take more than 70% of all the molds and dies market in Korea. Electric apparatus, automobile components, household goods and high precision parts often used in our lives are made by the molds & dies.

Molds & dies used in various areas of industries have been usually heat-treated or surface-modified by several types of nitriding or TD processes for improved performance. But materials of high hardness and toughness such as high tension steel made it not sufficient to use the established strengthening methods of nitriding and TD processes. Especially the development of high-performance forging machines and the improvement of surface treatments has gave more chances to cold forging which needs more improved surface treatments.

Molds & Dies

Dies

Press

Dies

Forging

Dies

Plastic

Molds

Casting

Molds

Rubber

Molds

Glass

Molds

Ceramic

Molds

Molds


2) World Market of Molds & Dies

A. Briefs of the World Molds & Dies Industry

Molds and dies industry of Korea had the production of 2,450 million Euros in 2002 which takes up about 9% of the world molds and dies market and makes not only Korea the fourth production country but also the fifth exporter after Japan, Germany, Italy and USA. The advanced countries like Japan, Germany and USA are strengthening their industry base of molds and dies by establishing research centers, keeping projects related to the industry, and standardizing the technologies. China, a late runner of molds and dies industry, has showed the loss in trade of molds and dies but been making around 14% growth annually by low labor costs, intense supports from the government and investments of advanced countries such as Japan in the industry.

B. Japan’s Export & Import of Molds & Dies

- Export

Japan’s export of molds and dies in 2004 amounted to 2,894.7 million Euros that showed increase of 23.7% relative to 2,339.6 million Euros in 2003. Japan’s industry of molds and dies had been reduced annually but has showed the increased export from 2003, which consider to be obviously recovered.

In 2004, Japan showed off similar growth in all areas of molds and dies industry. The export of plastic molds made a jump of 23.9% to 1,`141.4 million Euros while press dies, Japan’s main export item, was increased 26.9% to 1,137.5 million Euros and casting molds made 13.7% increase to 423.1 million Euros.

Export of Molds & Dies (Japan) [million Euros]

2003(A) 2004(B) B/A

Plastic Molds 920.8 1,141.5 +24%

Press Dies 877.8 1,137.5 +26.6%

Casting Molds 372 423.1 +13.7%

Other Molds 169 192.6 +14%


sum 2,339.6 2,894.7 +23.7%

* Data from Korea Die Mold Industry Cooperative

2339.6

2894.7

0

500

1000

1500

2000

2500

3000

2003 2004

Export of Molds & Dies (Japan)

millio

n E

uro

s

0

200

400

600

800

1000

1200

2003 2004

Plastic Molds Press Dies Casting Molds Other Molds & Dies

millio

n E

uro

s

The export of molds and dies to USA has been the biggest and amounted to 723.7 million Euros in 2004, 7.1% more than in 2003, but the portion in all its export was decreased 3.9%p, while the export to China increased 54.1% to 534.7 million


Euros, showing the portion increase of 3.7%p. Japan’s export to Korea made 44.2% increase to 51.1 million Euros, which means broadening of trade from economic recovery.

National Distribution of Export (Japan) [million Euros]

2003(A) 2004(B)

Amount (million Euros)

Portion (%)


Portion (%)

B/A

USA 675.5 28.9 723.7 25.0 +7.1 %

China 347.1 14.8 534.7 18.5 +54.1 %

Thailand 246.4 10.5 317.5 10.9 +28.8 %

Hong Kong 131.7 5.6 136.2 4.7 +3.5 %

Korea 35.4 1.5 51.1 1.8 +44.2 %

Other Countries 903.5 38.7 1,131.5 39.1 +25.2 %

sum 2,339.6 100.0 2,894.7 100.0 +23.7 %


National Distribution of Export (2004), [million Euros]

723.7

534.7

317.3136.3

51.1

1131.5

USA

China

Thailand

Hong Kong

Korea

Other Countries


0

200

400

600

800

1000

1200

USA China Thailand Hong Kong Korea OtherCountries

2003 2004

millio

n E

uro

s

- Import

In 2004, Japan imported molds and dies of 472.4 million Euros form the overseas which is more than 338.4 million Euros in 2003 by 134 million Euros. Plastic molds, whose import was 312.4 million Euros in 2004, took the biggest part in the Import of molds and dies. Press dies and casting molds also showed the increase of 43.9% and 64% respectively. Overall import of molds and dies in Japan’s industry had the propensity of casting molds having the bigger amount than that of press dies.

National Distribution of Export (Japan)

[million Euros]

2003(A) 2004(B) B/A

Plastic Molds 227.7 312.3 +37.2 %

Press Dies 36.5 52.5 +43.8 %

Casting Molds 42.5 44.9 +5.6 %

Other Molds 31.7 37.7 +18.9 %

sum 338.4 472.4 +39.6 %



338.4

472.4

0

100

200

300

400

500

2003 2004

Import of Molds & Dies (Japan)

millio

n E

uro

s

0

50

100

150

200

250

300

350

2003 2004


millio

n E

uro

s

The import from Korea was rapidly increased to 275.1 million Euros that was more than the half of all import of Japan. Other countries except Korea showed small growth of 3~5% while China had a relatively high growth of 16.3%.


National Distribution of Import (Japan)

[million Euros]

2003(A) 2004(B)


Portion (%)


Portion (%)

B/A

Korea 166.2 49.1 275.1 58.2 +65.6 %

China 50.7 15.0 77.2 16.3 +52.2 %

Taiwan 20.0 5.9 22.3 4.7 +11.6 %

Thailand 19.2 5.7 22.7 4.8 +18.3 %

USA 19.9 5.9 14.5 3.1 -26.8 %

Other Countries 62.5 18.4 60.5 12.8 -3.1 %

sum 338.4 100.0 472.4 100.0 +39.6 %



275.1

77.2

22.3

22.7

14.5

60.5

Korea

China

Taiwan

Thailand

USA

Other Countries


0

50

100

150

200

250

300

USA China Thailand Hong Kong Korea OtherCountries

2003 2004

mill

ion E

uro

s

3

C. China’s Export & Import of Molds & Dies

- Export

Chinese export of molds and dies, which has been showing tremendous growth every year, amounted to 468.4 million Euros in 2004, the 46.5% increase relative to 278.7 million Euros in 2003. The rapid growth of Chinese export is the evidence to successfully penetrate into the world market of molds and dies.

Not only Plastic molds, China’s biggest export item, grew by 33.1% to the amount of 281.3 million Euros but casting molds showed the increased amount of export, 71.9 million Euros which is 38.9% more than that in 2003. But press dies experienced slight decrease by the amount of 41.3 thousand Euros.

Export of Molds & Dies (China) [million Euros]

2003(A) 2004(B) B/A

Plastic Molds 211.3 281.2 +33.1 %

Press Dies 11.1 11.0 -0.9 %

Casting Molds 51.7 71.9 +39.1 %

Other Molds 29.6 44.3 +49.7 %

Sum 278.7 468.4 +68.1 %



278.7

468.4

0

100

200

300

400

500

2003 2004

Export of Molds & Dies (China)

millio

n E

uro

s

0

50

100

150

200

250

300

2003 2004


millio

n E

uro

s

China exported molds and dies in the value of 134.9 million Euros to Hong Kong, which is 35.5% of its total amount of export, 468.4 million Euros, while the amounts of export to Japan and USA were 49.3 and 28.9 million Euros respectively. In spite of overall big increase, China’s export to Korea was decreased by 2.4%, resulting in the amount of 9.9 million Euros.


National Distribution of Export (China)

[million Euros]

2003(A) 2004(B)


Portion (%)


Portion (%)

B/A

Hong Kong 99.5 35.8 134.9 33.0 +35.5 %

Japan 34.7 12.4 49.3 12.0 +42.2 %

USA 22.2 8.0 28.9 7.1 +30.1 %

Taiwan 10.4 3.7 22.3 5.5 +114.4 %

Korea 10.1 3.6 9.9 2.4 -1.8 %

Other Countries 101.8 36.5 163.1 39.9 +60.3 %

sum 278.7 100.0 468.4 100.0 +46.5 %



134.9

49.3

28.922.39.9

163.1

Hong Kong

Japan

USA

Taiwan

Korea

Other Countries


Export of molds & Dies in 2003 and 2004

0

20

40

60

80

100

120

140

160

180

Hong Kong Japan USA Taiwan Korea OtherCountries

2003 2004

mill

ion E

uro

s

- Import

China’s import market of molds and dies in 2004 was the place where all manufacturers of the world competed vigorously. In 2004, its import from overseas amounted to 1,498.8 million Euros, 32.5% increase comparative to 1,051.5 million Euros. Plastic molds had the import of 814.8 million Euros and especially press dies made record 138.3% increase to 318.4 million Euros. The rapid increase in its import of press dies seems to be from weak bases of Korea press dies industry relative to quick growth of press dies.

Import of Molds & Dies (China) [million Euros]

2003(A) 2004(B) B/A

Plastic Molds 660.5 814.8 +23.4 %

Press Dies 134.6 318.4 +136.3 %

Casting Molds 184.7 185.1 +0.2 %

Other Molds 167.8 178.1 +6.1 %

sum 1,051.5 1,498.8 +42.5 %



1051.5

1498.8

0

200

400

600

800

1000

1200

1400

1600

2003 2004

Import of Molds & Dies (China)

millio

n E

uro

s

0

100

200

300

400

500

600

700

800

900

2003 2004


millio

n E

uro

s

China imported molds and dies in the increased amount of 170.5 million Euros from Korea whose portion in China’s import was 11.4%. On the other hand, it purchased molds and dies in the value of 535.2 million Euros from Japan, 50.0% increase comparative to 356.8 million Euros in 2003.


National Distribution of Import (China) [million Euros]

2003(A) 2004(A)


Portion (%)


Portion (%)

B/A

Japan 356.8 31.5 535.2 35.7 50.0

Taiwan 229.3 20.3 290.9 19.3 26.9

Korea 136.4 12.1 170.5 11.4 25

Germany 82.0 7.3 120.8 8.1 47.3

Hong Kong 49.0 4.3 50.3 3.4 2.8

Other Countries 277.6 24.5 330.9 22.1 19.2

sum 1,131.1 100.0 1,498.8 100.0 32.5


National Distribution of Import (2004), [million Euros]

535.2

290.9170.5

120.8

50.3

330.9

Japan

Taiwan

Korea

Germany

Hong Kong

Other Countries


Import of molds & Dies in 2003 and 2004

0

100

200

300

400

500

600

Japan Taiwan Korea Germany Hong Kong OtherCountries

2003 2004

mill

ion E

uro

s

3) Korea Production of Molds & Dies

Production of molds and dies in Korea showed continuous increase from 2000 to 2002, expected to continue the trend in 2004 from the export of molds and dies in the following 5) Export and Import of molds and dies. In 2002, the production of molds and dies amounted to 2,909.5 million Euros relative to 2460.5 million Euros in 2001, increase of 449 million Euros. Plastic molds had the biggest part of the production. Casting molds experienced the decrease in 2001 and increase in 2002 while the others got continuous growth from 2000 to 2002.

Korea Production of Molds and Dies [million Euros]

2000 2001 2002 Plastic Molds 1,113.8 1235.8 1,343.3 Press Dies 420.8 475.5 659

Casting Molds 85.3 61.8 102.4 Other Molds & Dies 733.4 785.8 921.8

sum 2,262.8 2460.5 2,909.5 * Data from Korea Die Mold Industry Cooperative


0

500

1000

1500

2000

2500

3000

2000 2001 2002

Production of Molds & Diesm

illio

n E

uro

s

0

200

400

600

800

1000

1200

1400

2000 2001 2002

Production of Plastic Molds

millio

n E

uros

0

100

200

300

400

500

600

700

2000 2001 2002

Production of Press Dies

milli

on E

uros


0

20

40

60

80

100

120

2000 2001 2002

Production of Casting Molds

millio

n E

uro

s

0

200

400

600

800

1000

2000 2001 2002

Production of Other Molds & Dies

millio

n E

uros

4) Korea Demand of Molds & Dies

Overall Korea demand of molds and dies in Korea was in the trend of growth although it also showed slight increase in the demand in 2001. From the import data in the following 5) Export & Import of Molds and Dies, the Korea demand for molds and dies are expected to have continuously increased by more than 20% annually from 2002 to 2004.

Korea Demand of Molds & Dies [million Euros]

2000 2001 2002 Korea Demand of Molds

& Dies 1856.9 1977 2456.2



0

500

1000

1500

2000

2500

2000 2001 2002

Domestic Demand of Molds & Dies

millio

n E

uro

s

5) Export & Import of Molds & Dies A. Export

Molds and dies industry of Korea achieved the export of 837.6 million Euros in 2004, which is the record amount of export in the history of Korea’s molds and dies industry, and got the black balance sheet of 747.7 million Euros.

In 2004, plastic molds increased by 111.5 million Euros (24.8%) to 560.4 million Euros while casting molds had increase of 38.7% to 62.4 million Euros. Especially the export of press dies amounted to 129.4 million Euros, the big increase by 42.3 million Euros (48.5%), which was the result of flourishing automobile businesses.

Export of molds & Dies in items [million Euros]

2001 2002 2003(A) 2004(B) B/A Plastic Molds 396 376.6 449 560.4 +24.8 %Press Dies 45.1 63.2 87.1 129.4 +48.5 %

Casting Molds 39.6 54.7 45 62.4 +38.7 %Other Molds & Dies 42.2 23.4 30.1 85.4 +183.7%

sum 522.9 517.9 611.2 837.6 +37 % * Data from Korea Die Mold Industry Cooperative


0

100

200

300

400

500

600

700

800

900

2001 2002 2003 2004

Export of Molds & Dies

millio

n E

uro

s

0

100

200

300

400

500

600

2001 2002 2003 2004

Export of Plastic Molds

millio

n E

uro

s

0

20

40

60

80

100

120

140

2001 2002 2003 2004

Export of Press Dies

millio

n E

uro

s


0

10

20

30

40

50

60

70

2001 2002 2003 2004

Export of Casting Molds

millio

n E

uro

s

0

10

20

30

40

50

60

70

80

90

2001 2002 2003 2004

Export of other Molds & Dies

millio

n E

uro

s

On the other hand, the export to Japan made the jump of 65.6% relative to in 2003 to 275.1 million Euros, and the export to the main countries like China, USA, and India showed the increase of 25%, 35.6% and 83.1% respectively. In the viewpoint of regional export, Korea exported most (73.1%) of its molds and dies export to Asia, which means its export was highly dependant on Asia.


National Distribution of Export (Korea) [million Euros]

No Country Amount

(million Euros) Portion (%)

1 Japan 166.2 27.2

2 China 136.4 22.3

3 USA 97.2 7.7

4 Indonesia 32.3 5.3

5 Thailand 27.7 4.5

6 Mexico 26.2 4.3

7 India 20.2 3.3

8 Hong Kong 15.3 2.5

9 Malaysia 13.4 2.2

10 Vietnam 10.5 1.7

11 Turkey 10.5 1.7

12 England 8.7 1.4

13 Philippines 8.7 1.4

14 Italy 8.4 1.4

15 Other countries 79.5 13.1

Sum 611.2 100



Other countries

79.5(13.1%)

Malaysia 13.4(2.2%)

Vietnam 10.5(1.7%)

Turkey 10.5(1.7%)

England 8.7(1.4%)

Philippines 8.7(1.4%)

Italy 8.4(1.4%)

Hong Kong 15.3(2.5%)

Japan

166.2(27.2%)

India 20.2(3.3%) 611.2 (100%)

Million EurosMexico 26.2(4.3%)

Thailand 27.7(4.5%) China

136.4(22.3%) Indonesia 32.3(5.3%)

USA

97.2(7.7%)

Regional Distribution of Export (Korea) [million Euros]

No Region Amount


1 Asia 447 73.1

2 Middle East 11.04 1.8

3 Europe 58.7 9.6

4 North America 49.8 8.1

5 Middle & South America 34.9 5.7

6 Africa 1.13 0.2

7 Oceania 8.72 1.4

8 Other regions 0.02 0.1

Sum 611.2 100



Africa 1.13(0.2%)

B. Import

Overall import of molds and dies from overseas experienced slight negative growth (-100 thousand Euros) in 2002 and then showed relatively big increase of more than 20% from 2002 to 2004.

Plastic molds continued the increase of similar growth rates (around 18%) until 2003 while press dies and casting molds showed decrease in 2002 and then increase in 2003 but other molds and dies had small down step (-10 thousand Euros) in 2003.

Import of Molds and Dies (Korea) [million Euros]

2001 2002 (A) 2003 (B) 2004 B/A Plastic Molds 24.02 28.5 33.47 +17.6%Press Dies 10.5 6.58 9.72 +47.9%

Casting Molds 11.2 7.9 11.63 +47.2%Other Molds & Dies 11.1 13.77 13.38 -2.8%

sum 56.8 56.7 68.2 89.9 +20.3%* Data from Korea Die Mold Industry Cooperative

Oceania 8.72(1.4%)

Middle & South America 34.9(5.7%)

North America 49.8(8.1%)

Europe 58.7(9.6%)

611.2 (100%)

Million EurosMiddle East 11.04(1.8%)

Asia

447(73.1%)


0

10

20

30

40

50

60

70

80

90

2001 2002 2003 2004

Import of Molds & Diesm

illio

n E

uro

s

0

5

10

15

20

25

30

35

2001 2002 2003

Import of Plastic Molds

millio

n E

uro

s

0

2

4

6

8

10

12

2001 2002 2003

Import of Press Dies

milli

on E

uros


0

2

4

6

8

10

12

2001 2002 2003

Import of Casting Molds

millio

n E

uro

s

0

2

4

6

8

10

12

14

2001 2002 2003

Import of other Molds & Dies

millio

n E

uro

s

Korea imported more than 50% of its imported molds and dies from Japan. 14.8% of imported molds and dies to Korea came from China while 8.1% and 7.8% from Germany and USA respectively.

For the import as well as export by region, Korea was highly dependant on Asia.


National Distribution of Import (Korea) [million Euros]

No Country Amount


1 Japan 35.44 52

2 China 10.12 14.8

3 Germany 5.51 8.1

4 USA 4.95 7.3

5 Italy 2.32 3.4

6 Switzerland 1.08 1.6

7 Netherlands 1.00 1.5

8 Vietnam 0.96 1.4

9 Taiwan 0.95 1.4

10 Thailand 0.84 1.2

11 Hong Kong 0.7 1.0

12 France 0.62 0.9

13 Philippines 0.44 0.7

14 Canada 0.28 0.4

15 Other countries 3 4.3

Sum 68.2 100

* Data from Korea International Trade Association (KITA)


68.2 (100%)

Million Euros

Japan

35.44(52%)

Philippines 0.44(0.7%)

Thailand 0.84(1.2%)

Switzerland 1.08(1.6%)

Netherlands 1(1.5%)

Other countries 79.5(13.1%)

Taiwan 0.95(1.4%)

Vietnam 10.5(1.4%)

Hong Kong 10.5(1.7%)

France 0.62(0.9%)

Canada 0.28(0.4%)

Italy 2.32(3.4%)

USA

4.95(7.3%)

Germany

5.51(8.1%)

China

10.12(22.3%)

Regional Distribution of Import (Korea)

[million Euros]

No Region Amount


1 Asia 50.27 73.7

2 Middle East 0.12 0.1

3 Europe 12.34 18.1

4 North America 5.26 7.7

5 Middle & South America 0.04 0.1

6 Africa 0.03 0.1

7 Oceania 0.15 0.2

8 Other regions 0.04 0.1

Sum 68.2 100



Africa 0.03(0.1%)

North America 5.26(7.7%)

Middle & South America 0.04(0.1%) Oceania 0.15(0.2%)

Europe 12.34(18.1%)

68.2 (100%)

Million EurosAsia

50.27(73.7%)Middle East 0.12(0.1%)

6) Recent Trends of Export & Import A. Export

In the first quarter of 2005, plastic molds was the only item that showed increases of 17.1% and 10.7% respectively in the export for both the first quarter and the fourth quarter in 2004. The press dies, which made dramatic increase in the export of molds and dies in 2004, showed increase of 4.3% to 28.6 million Euros relative to in the 1st quarter of 2004 but decrease of 30.3% relative to in the 4th quarter of 2004. The export of casing molds and other molds & dies decreased by 5~35% relative to in the 1st and 4th quarters of 2004.

Export of Molds & Dies [million Euros]

classification 1st Quarter 2004 (A)

4th Quarter 2004 (B)

1st Quarter 2005 (C)

C/A C/B

Plastic Molds 135.1 142.9 158.3 +17.1% + 10.7%

Press Dies 27.4 41 28.6 +4.3% - 30.3%

Casting Molds 12.9 18.6 12.3 - 5.1% - 34.1%

Other Molds & Dies

22.8 18.9 16.3 - 28.7% - 14.0%

Sum 198.2 221.4 215.5 + 8.6% - 2.7%


* Data from Korea International Trade Association

185

190

195

200

205

210

215

220

225

1st Quarter 2004

4th Quarter 2004

1st Quarter 2005

Export of Molds & Dies ['04, '05]

millio

n E

uro

s ]

120

125

130

135

140

145

150

155

160

1st Quarter 2004

4th Quarter 2004

1st Quarter 2005

Export of Plastic Molds ['04, '05]

milli

on E

uros

0

5

10

15

20

25

30

35

40

45

1st Quarter 2004

4th Quarter 2004

1st Quarter 2005

Export of Press Dies['04, '05]

millio

n E

uros


0

5

10

15

20

1st Quarter 2004

4th Quarter 2004

1st Quarter 2005

Export of Casting Molds['04, '05]

millio

n E

uros

0

5

10

15

20

25

1st Quarter 2004

4th Quarter 2004

1st Quarter 2005

Export of Other Molds & Dies['04, '05]

millio

n E

uro

s

B. Import

According to Korea International Trade Association (KITA), the import of molds and dies in the 1st quarter of 2005 amounted to 28.9 million Euros, 28.2% increase relative to in the same period of 2004. Rapid increase of the import of them was found in the 4th quarter of 2004, and this increase trend of the import continued in the 1st quarter of 2005, which is said to be the signal of economic recovery. The export of plastic molds in the 1st quarter this year was 9.8 million Euros by decreases of 6.3% and 11.2% respectively while press dies hit the record jumps (353.3% and 89.7% increases) to 9.3 million Euros, almost the same amount as that of plastic molds. Casting molds showed 200% increase while other molds and dies were decreased by 31.7% relative to in the 1st quarter of 2004.


Import of Molds & Dies

[million Euros]

Classification 1st Quarter 2004 (A)

4th Quarter 2004 (B)

1st Quarter 2005 (C)

C/A C/B

Plastic Molds 10.4 11 9.8 - 6.3% - 11.2%

Press Dies 2.1 4.9 9.3 + 353.3% + 89.7%

Casting Molds 1.3 7.9 3.8 + 200% - 51.4%

Other Molds & Dies

8.8 5.6 6 - 31.7% + 7.5%

Sum 22.6 29.4 28.9 + 28.2% - 1.6%


0

5

10

15

20

25

30

1st Quarter 2004

4th Quarter 2004

1st Quarter 2005

Import of Molds & Dies ['04, '05]

millio

n E

uro

s


9.29.49.69.810

10.210.410.610.8

11

1st Quarter2004

4th Quarter2004

1st Quarter2005

Import of Plastic ['04, '05] Molds

millio

n E

uros

0

2

4

6

8

10

1st Quarter2004

4th Quarter2004

1st Quarter2005

Import of Press Dies ['04, '05]

millio

n E

uro

s

0

1

2

3

4

5

6

7

8

1st Quarter2004

4th Quarter2004

1st Quarter2005

Import of Casting Molds ['04, '05]

millio

n E

uro

s


0123456789

1st Quarter2004

4th Quarter2004

1st Quarter2005

Import of Other Molds & Dies ['04, '05]

milli

on E

uros

7) Manufacturers of Molds & Dies

Korea has 3,675 manufacturers of molds and dies which are distributed nationwide but highly concentrated on the national capital region such as Kyung-gi, Seoul and Incheon or other metropolitan areas.

In the viewpoint of the number of employees, the manufacturers having more than 100 employees are just 2% while companies with less than 10 employees are more than 79% in all the manufactures in Korea.

Most of the manufacturers of molds and dies in Korea are the small and medium sized companies that are financially weak.

Regional Distribution of Manufacturers in Korea (2002)

classification Kyung-gi Seoul Incheon Busan Taegue Kyungnam

Ulsan

Manufacturers 1,184 714 410 516 291 137

Portion (%) 32.2 19.4 11.1 14.0 7.9 3.7

Kyungbuk Zheonnam Kwangju

Jeju

ChungnamDaejeon

Chungbuk Zheonbuk Kangwon sum

85 154 130 37 14 1 3,675

2.3 4.2 3.5 1.0 0.3 0.1 100



Korea

3,675(100%) Kangwon

1(0.1%)

Zheonbuk

14(0.3%)

Chungbuk

37(1.0%)

Kyungbuk

85(2.3%)

Kyungnam

Ulsan

137(3.7%)

Taegue

291(7.9%)

Busan

516(14.0%)

Incheon

410(11.1%)

Seoul

714(19.4%)

Kyung-gi

1,415(38.5%)

Chungnam, Daejeon

130(3.5%)

Zheonnam, Kwangju, Jeju

154(4.2%)

Manufacturers for the Number of Employees (Year 2002)

Number of

Employees

Plastic Molds

Press Dies Casting Molds

Other Molds & Dies

Sum (portion,%)

1~4 411 521 35 477 1,444

(39.3%)

5~9 618 274 42 544 1,478

(40.3%)

10~29 159 118 29 43 349

(9.5%)

30~49 153 47 10 32 242

(6.6%)

50~99 42 26 2 16 86

(2.3%)

More than 100

32 24 3 17 76

(2.0%)

Sum 1,415 1,010 121 1,129 3,675

(100%)



Manufacturers for the Number of Employees

More than 100 employees

76(2.0%) 50~99 employees 86(2.3%)

30~49 employees 242(6.6%)

10~29 employees

349(9.5%) 1~4 employees

1,444(39.3%) 3,675(100%)

5~9 employees

1,478(40.3%)

Number of Manufacterers for their porducts

Other Molds & Dies

1,129(30.7%) Plastic Molds

1,415(38.5%)

3675(100%)

Casting Molds

121(3.3%)

Press Dies

1,010(27.5%)


As mentioned before, most of the manufacturers of molds and dies in Korea have small or medium size. Here are the randomly selected major manufacturers in Korea.

1.Sangjin Micron Co., Ltd.

Address

Tel./Fax.

613-6, Namchon-dong, Namdong-gu, Incheon, Korea

032)814-2002/F032)814-2007

CEO Oh Hyun, Kwon

Website http://www.sangjinmicron.co.kr



Certifications .8), QS9000(2000.8) ISO9002(2000

Main Products

* Gas Range

* Gas Stove .M.W.O Parts : Teflon Rollar, Teflo

Progressive Die,Transfer Die

Machine Vise,Mil

Generator C

n coupler, Guide Roller

* Press DIe & PRess Stamping And Assembly

ling Tool's

ore

Side Rail

2.SamJin LND Co., Ltd

Address

Tel./Fax.

494-3, Youngcheon-ri, Dongtan-myeon,

Hwaseong-si, Gyeonggi-do, Korea

031)379-2000/F031)376-5830

CEO Gyung Jae, Lee

Website http://www.samjin.com



Certifications ISO 9001(1997. 3), 100PPM(1997. 12)

Main Products

* Parts for Audio Tape D

* Cassette Type Molds

esk Mechanisms,




* Parts for O.A

* Mold Frame

. Products

* Turn Table

3.MOTONIC Co., Ltd

Address 1095-11, Sindang-dong, Dalseo-gu,Daegu, Korea

Tel. 053)589-6412

Fax. 053)583-3051

CEO Young Bong, Kim

Website http://www.motonic.co.kr



Certifications 6. 2), E Mark(`99.12) ISO-9001(`9

Main Products

* Sensors

* Actuator

4.ShinYoung Precision Co.,Ltd

Address 333-15, Doksan1-dong, Geumcheon-ku, Seoul,

Korea

Tel. 02)2109-7900

Fax. 02)806-6679

CEO Chang Seok, Shin

Website http://www.shinyoung.co.kr



Certifications ISO 9002(2001. 11), ISO 9001/14001(2002. 10)

Main Products

* Cellular phone Tool Design

* Cellular phone Tool Fabrication

* Cellular phone Injection Molding

* Cellular phone Assembly


5.SamJin.CO.,Ltd

Address 199-6, Anyang7-dong, Manan-gu, Anyang-si,

Gyeonggi-do, Korea

Tel. 031)467-5879

Fax. 031)469-3114

CEO Pyung Kil, Kim

Website http://www.samjin.com



Certifications KSA/ISO9001(97.3), ISO14001(97.12), 100PPM(96.

10)

Main Products

* Injection Mold & Products

- TV Case, Remote control, Air-co

* Ass'y Line for Electronic Goods

n, Air-Cleaner

-Remote Controller Mold, Speaker System, Air-cleaner, SMT

6.SangA Flontec Co., Ltd

Address 7B 4L ,614-4 Namchon-dong, Namdong-gu, Incheon,

Korea

Tel. 032)451-7805

Fax. 032)822-1867

CEO Sang Won, Lee

Website http://sftc.koreasme.com



Certifications 11), 100PPM(97.11) QS9000(99.

Main Products

. VTR Parts : Tension band Assy, Head brush Assy, Polysider&Nylon washer

.M.W.O Parts : Teflon Rollar, Teflon coupler, Guide Roller Assy, Bath bottle

LCD cassette

Pliable Hose

. Semiconductor Parts : Wafer carrier(4",5",6",8"), PFA tube, PFA Fitting

, Bellows & Diaphran pump, Air control Diaphragm, Va/Ve,

.Teflon low friction ,Air Compressor Piston ring ,Shock absorder piston ring




Automobile parts : Air compressor piston ring, Shock absorber piston ring,

pision ring for accelerator cable, pision ring for power steering & auto

PFA,ETFE)Lined tank, Pipe&

Fitting, Teflon lined diaphragm & Plug Va/Ve

transmission

Chemicals : Heat exchanger, Teflon (PTFE,

7.Dom Co., Ltd.

Address 6, Juan5-Dong, Nam-Ku, Incheon-si,Korea

Tel. 032)870-0114

Fax. 032)870-0139

CEO Young Ho, Park

Website http://www.dom.co.kr



Certifications 02(2000.10) ISO90

Main Products

* Cellular Phone Parts

* Digital Camera

* Cordless Phone Parts,etc

* Audio Parts

8.SungChull Mfg. Co., Ltd

Address 1401,Banyeo1-dong, Haeundae-gu, Busan, Korea

Tel. 051)523-1225

Fax. 051)524-6121

CEO SeungKee,Kam

Website http://www.starion.co.kr



Certifications .6), QS9000(00.5) ISO9002(97

Main Products

* Oil Burner for Heater

* Gas Valve for Gas Range 1 Solenoid Valve

* Pump Circulation Hot Water & Heat Exchanger for Boiler


* Tank Assembly for

* Oil Pan for Motor

Water Pump

* Water-purifiers, Electric Stove Juicers Mixer, Humidifiers

9.HJ Tec Co., Ltd.

Address 432-5, Nonhyeon-dong, Namdong-gu, Incheon,

Korea

Tel. 032)819-1340

Fax. 032)819-1349

CEO Soon Taek, Kim

Website http://www.hjtec.co.kr



Certifications ISO9002(1999.12), ISO14001 (2001. 6)

Main Products

* Notebook Case

* Automobile Parts

* Video, Audio Case

* Precision Parts

10.A-Sung Platech Co.,Ltd

Address 393-2 Mongnae-Dong Ansan-si Gyeonggi-Do

Korea

Tel. 031)491-8114

Fax. 031)491-8119

CEO Sea Back, Rho

Website http://www.asung.co.kr



Certifications 9002,QS9000(00.5) 100 PPM,ISO

Main Products

* Automobile Parts

Engin ManagementAFS,ECU,MAP,EngineBlock),

Lamp/Light,Connector,Junction Box Fuse Box,Scuff/TRim,Stick Door


Handle,Housing,Sunroof Dra

*Electric & Electronic Parts

in,Speaker Grille Ass'y.etc.

Aircon,Cooler Handphone,Computer,etc

11.Dorco Co., Ltd.

Address 162-3, Nonkok-Dong, Siheung-si, Gyoenggi-Do,

Korea

Tel. 031)403-7111

Fax. 031)405-9522

CEO Ju Shik, Hong

Website http://www.dorco.co.kr



Certifications

Main Products

* Electronic

* Multi Cav' Razor Molds

12.Sung Woo Co., Ltd.

Address 613-6, Namchon-dong, Namdong-gu, Incheon,

Korea

Tel. 054)473-4100

Fax. 054)472-0935

CEO Chae Won, Park

Website http://www.e-sungwoo.co.kr



Certifications ISO9002(1996.12), ISO14001(1997.12), Single PPM

(2001.2)

Main Products

*

-Electric Gun Components for C.R.T

Electronics & Electric Components



13.Keum Sung Precision Mould & Plastic Injection Ind. Co., Ktd.

Address

Tel./Fax.

76B7L, 3rd Seongseo, Industrial Complex 204-8

Paho-dong,Dalseo-gu,Daegu, Korea

053)582-5011/053)581-5015

CEO Jin Jung, Kim

Website http://www.keumsung.co.kr



Certifications ISO 9001(03. 4) , Single PPM(00 . 12)

Main Products

*TV & Monitor Parts

pressor

*LCD Parts *Automotive Parts

DY Parts

FBT Parts

*Refrigerator & Air-conditioner Com

14.Dong Ho Tech Co., LTD.

Address 378, Songnae-dong, Sosa-gu, Bucheon-si,

Gyeonggi-do, Korea

Tel. 032)614-0595

Fax. 032)614-0599

CEO Jae Sub, Lee

Website http://www.dongho.com



Certifications ISO 9001(2003.11) QS 9000 :

Main Products

* Home Appliance Mold

- Cam-coder, Audio-Came

* Engineering Plastic Mold

-Gear, Relay, Connector, etc

* Cellular Phone Housing M

* In-Mold & Forming Mold

ra, etc

old



- Cellular Phone Window, Key-mat, etc

15.Shinwon Tech Co.,Ltd

Address 610-11, NamChon-dong Namdong-gu, Incheon,

Korea

Tel. 032)814-6331

Fax. 032)814-7301

CEO Kwan Young, Kim

Website http://www.shinwontech.com



Certifications 9002('98.6) ISO

Main Products

* Lead Frame Stamping Mould

* Semi-Conductor Mould Parts

* Automobile Piston Ring Mould

* Crt Tube Electron Gun Mould

* Tungsten Carbide A

* Diamond Fo

* Envil & Die

Parts

lloy Material

rming

* Condenser Manufacturing Machine Parts

16.Lubo Industries. Inc

Address 640-12, Gojan-dong, Namdong-gu, Incheon,

Korea

Tel. 032)821-5656

Fax. 032)821-9501

CEO C.K, Yang

Website http://www.lubo.co.kr



Certifications ISO9002(1999.10.26), ISO 9001:2000(2002. 12)

Main Products

* Self-lubricating Bearing



* Dry Bearing

* Indent Bronze Be

* Bimetal Bearing

aring

* Spherical Bearing ,etc.

* Bridge Bearing

* Monorail & Linear Bearing

17.Samu Dies Corporation

Address 100-96, Onsoo-Dong, Guro-gu, Seoul, Korea

Tel. 02)2611-2291

Fax. 02)2682-2294

CEO YoonJang, Cho

Website http://www.samudies.co.kr



Certifications 01 (2002. 12) ISO 90

Main Products

* Automobile Parts

* Microwave Oven Par

* Computer Products

ts

* Computer for Bank

18.Kae Sung Co.,Ltd.

Address 185-9, Dodang-dong, Wonmi-gu, Bucheon-si,

Gyeonggi-do, Korea

Tel. 032)676-8601

Fax. 032)676-8600

CEO Yong Kun, Lee

Website http://www.kaesung.co.kr


No. of Employees 70

Certifications ISO 9002, UL, QS 9000, ISO 14001 ,QS

00(2002.12) 90

Main Products



*A

s, Inner Plastic Parts

*E

ller, Note PC Keyboard, VCR, CD, Audio Parts

*M

: Plastic Valves, Retainer

utomotive Parts

: Ventilation grills, Seatbelt

lectronic, Electrical Parts

: Remote contro

achinery Parts

19.Dong Jin Precision Co., Ltd.

Address 439, Segyo-Dong, Pyeongtaek-si, Gyeonggi-Do,

Korea

Tel. 031)653-6800

Fax. 031)655-3747

CEO Seung Dong, Chung

Website http://www.djpc.co.kr


No. of Employees 70

Certifications .4) 2.QS9000(99.10) 1.ISO9001(98

Main Products

* Rear View Mirror

* Injection Diecasting

20.KEOYANG CORPORATION

Address 660-5, Seonggok-Dong, Ansan-City, Kyunggi-

Do,Korea

Tel. 031)499-2191

Fax. 031)499-3009

CEO Seok Joon, Song

Website http://www.keoyang.co.kr


No. of Employees 86

Certifications ISO 9002(1998. 7), ISO 14001(2003. 12), NT(2000.

9)

Main Products

Tapered Roller Bearing Retainer


Ball Bearing Retainer

Shield Plate

21.BM Co.,Ltd

Address 1095-11, Sindang-dong, Dalseo-gu,Daegu, Korea

Tel. 031)335-8429

Fax. 031)332-5538

CEO Ok Bae, Chun

Website http://www.baeeun.co.kr


No. of Employees 84

Certifications 6. 2), E Mark(`99.12) ISO-9001(`9

Main Products

* 187 P-Lock Housing &

* A/C D/C small Motor

* EMI Filter & Line Filte

* Audio /Video ,Jack

2-36 Connector Housing

r

* Power inlet Socket, Mold

22.Gold star Heat Treatment Co.,Ltd.

Address 3na501,1289 Jungwang-dong,Siheung-

si,Gyeonggi-do,Korea

Tel. 031)499-3989

Fax. 031)499-3982

CEO EunHyo,Lee

Website http://www.


No. of Employees 80

Certifications 002(`00.11) ISO 9

Main Products

*Diecasting Mold/Press Mold Heat Treatment

*Heavy M/C Parts, Mold, Industry Machines

*Automobile Parts, Electric Powered Tools



3. R & D Organizations

ted R&D organizations

which have researchers carrying out PVD coating projects.

rch Institute of Industria ST)

Many R&D organizations, such as universities and national research centers, have

carried out researches with PVD(ion plating). Mainly they have purchased their

PVD(ion plating) systems or made themselves. The purchase of PVD system of

the organization depends on researchers and funds. Almost all R& D organizations

notice their purchase list in public. Following list is selec

Resea l Science & Technology (RI

Department Metal Coating Research Team

Researcher/Professor Jeon 55) Jung-Whan(054-279-6473) Im Eun-Ho(054-279-69

Address San 32 Hyyja-dong, Namgu Pohang 790-600, Korea

Tel. 054-279-6473

Website http://www.rist.re.kr

E-mail

Papers

Korea Institute of Machinery & Materials(KIMM)

Department Aerospa hnology ce Materials TecResearcher/Professor Kwon Sik-Chul

Address 171 Jang-dong Yu , 305-343, Korea sung-gu Daejeon

Tel. 042-861-7401

Website http://www.kimm.re.kr/

E-mail [email protected] web

Papers

Pusan University


Department Materials Science & Engineering

Researcher/Professor Kim Kwang-Ho

Address 30 Jangjeon-dong, Geumje 09-735, Republic of Koreaong-gu, Busan 6

Tel. 051-510-2391

Website http://www.pusan.ac.kr


Papers

Effect of the WC particle size and Co content on the adhesion property between AIP-

TiN coating and WC-Co substrate, Journal of the Korean Institute of Surface

engineering 2002,6 v.035, n.003, pp.165- 71 1225-8024 1

Kyunghee University

Department Materials Engineering

Researcher/Professor Paek Young-Nam

Address 1 Hoegi-dong Do Seoul, 130-701 ngdaemun-gu

Tel. 031-201-2508

Website http://www.kyunghee.ac.kr


Papers

The Tin coating for life-eztension on the cutting bites, Journal of the Korean Institute of

Surface engineering

Chunnam University

Department Materials Science and Engineering

Researcher/Professor Kim Kwan-Hue

Address 300 Yongbond- ngju, Korea dong Buk-gu Kwa

Tel. 062-530-1700

Website http://www.chonnam.ac.kr/

E-mail

Papers

Pitting Behavior of Ti/TiN Film Coated onto AISI 304 Stainless Steel, Journal of the

Korean Institute of Surface engineering 2000,4 v.033, n.002, pp.93-100 1225-8024


Korea Maritime University

Department Corrosion research center

Researcher/Professor Mun Kyung-Man

Address 1 Dongsam-dong Y n, 606-791, Korea oungdo-gu Pusa

Tel. 051-410-4352

Website http://www.kmaritime.ac.kr/

E-mail anara.kmaritime.ac.kr lab@h

Papers

A Study on Formation and Evaluation of he Thin Films for Improvement of Tribology

Properties, Journal of the Korean Institute of Surface engineering 2000,10 v.033, n.005,

p.319-328 1225-8024

Journal of the Korean Institute of

Surface engineering 1996.10 v.29, n.5, pp.585-592

p

EFFECTS OF GAS PRESSURES ON GRANULAR STRUCTURE'S FOR MATION OF

ALUMINUM FILMS PREPARED BY PVD PROCESS,

Chosun University

Department Dept. of Dental Materials and Research Center of Nano-

In terface Activation for Biomaterials

Researcher/Professor Young-Mu Ko, Han-Cheol Choe

Address 375 Seosuk-dong D , 501-759, Korea ong-gu Kwangju

Tel. (062)230-7017

Website http://www.chosun.ac.kr/

E-mail

Papers

EFFECTS OF SURFACE ROUGHNESS AND MULTILAYER COATING ON THE

CORROSION RESISTANCE OF Ti-6Al-4V ALLOY, Proceedings of the Korean Institute of

Surface Engineering Conference 2003,10 v.2003

Ssangyong Research Center

Department

Researcher/Professor Kim Jong-Hee



Address 100 Shinsung-dong Y on, 305-345, Korea usung-gu Daeje

Tel. 042)865-1501

Website http://www.ssangyongresearch.re.kr/


Papers

Effect of Process Parameters on Deposition Characteristics in Fabrication of Coated

Tools, Journal of the Korean Institute of Surface engineering 1995.12 v.28, n.6,

pp.368-375

Hanyang University

Department Materials Science and Engineering

Researcher/Professor Sung-Goon, Kang

Address 17 Hangdang-dong S ul, 133-791, Korea ungdong-gu Seo

Tel. 02-2220-0404

Website http://www.hanyang.ac.kr/

E-mail [email protected] sgk

Papers

Improvement of the Corrosion Resistance of PVD Hard Coating/Substrate Systems -

Recent Developments, Journal of the Korean Institute of Surface engineering 1999.06

v.32, n.3, pp.472-483



III. PVD Market Analysis

1. Review of the PVD market in Korea

others are insignificant small companies whose number is said to be more than 100.

ing service for and how much they did for each item.

onents (7%) and others (5%). From the data, each item has its own amount of market

the market amount of 15.4 million Euros, and 5.4 million Euros are for molds & dies.

e role of supplementary data for expecting the amount of Korea’s overall PVD market.

It is almost impossible to get the exact information about the PVD market of Korea mainly because any kind of survey on the market was not carried out in Korea before. PVD coating (ion plating) was introduced to Korea relatively a long time ago but the time when PVD coating systems started to get commercial success in Korea is not far from now, within about 10 years. From the middle of 1990’s, when Balzers Korea, the No. 1 PVD coating service provider in Korea, was founded by Balzers, PVD had its own status in the surface modification market. According to the business managers from PVD service companies, there are about 10 main PVD coating service providers in Korea and the

In the PVD market in Korea, Balzers Korea has the market share of more than 1/3 in Korea. From the interviews with many business managers from major PVD coating service providers, the current market scale of PVD could be deduced to around 32 million Euros. And the components of the market also could be analyzed from the actual survey on what items they gave PVD coat

The result is the following figure.

In the figure, the overall market of PVD amounts to 32 million Euros and the components of the market are cutting tools (48%), molds & dies (17%), punches (15%), hob (8%), automobile comp

So, Cutting Tools, usually shank tools, have

As a reference, the turnovers of the major PVD coating providers in 2004 are considered to play th


Components of Current PVD market in Korea

Cutting Tools

15.36 (48%)

Molds & Dies

5.44 (17%)

4.8 (15%)

2.56 (8%)

Automo nents

2.24 (7%)

Etc. 1.6 (5%)

32 million Euros

(100%)

PVD market

bile compo

hob

Punches

* Data from interviews with staffs from PVD coating service companies.


Market Amounts of Each Item

15.4

5.44.8

2.6 2.21.6

0

2

4

6

8

10

12

14

16

1

millio

n E

uro

s ]

Cutting

Tools

Molds

& Dies

Punches Hobs Auto

Components

Etc.


Turnovers of Major PVD coating service providers


12000

18401200 1040

600

1440 1600 1120

0

2000

4000

6000

8000

10000

12000

1

ou

a]

Balzers

Korea

Eltron

Top tech

Korea

OSG

Borim

Plasma

Hyoshin

Metal

Donghae

Woosong

Tech

ros

nd E

us

th


2. Analysis of the PVD Market 1) Markets of T and Molds & Di

The market amount of tools is the sum of shank tools (123insert

For the molds & dies, Korea production of them should be the total PVD market. So th Euros (2002).

2,909.5 * Data from Korea Die Mold Industry Cooperative

ools es

.8million Euros) and s (154.8million Euros), resulting in 278.7 million Euros (2004).

e total market amount of molds and dies is 2909.5 million

Korea Production of Molds and Dies [million Euros]

2000 2001 2002 Plastic Molds 1,113.8 1235.8 1,343.3 Press Dies 420.8 475.5 659

Casting Molds 85.3 61.8 102.4 Other Molds & Dies 733.4 785.8 921.8

sum 2,262.8 2460.5


2) Comparison of each industry and the PVD market A. Shank Tools and Inserts

The market of cutting tools (shank tools and inserts) amounted to 278.7 million Euros while the PVD market for the cutting tools has the amount of 15.4 million Euros. From the 2 figures, the ratio of the market of and the PVD coating service market for shank tools & inserts is 5.5% which is much lower than 10%, the ratio that is considered to be the appropriate portion of the coating service market for industries. This means that the market of cutting tools including shank tools and inserts has the enough capability for the growing PVD business. Actually

B. Molds and Dies

The market of molds an he amount of 2,909.5 million Euros in 2002 whereas the 2004 PVD market amount for molds & dies million Euros.

The ratio of the market of molds & molds & die calculated ratio of 9% was gained. But in molds and dies i l surfa ning systems such as nitri D process eing carried out successfully. This makes the appropriate portion of PVD coating in the industry lower than the level of 10%. In this case, 1% was considered to be the available market for PVD coating services. In spite of several established coating services for molds and dies, the industry of molds & dies can still give PVD business much bigger market than now.

PVD Market in Korea Million Euros

Total Market

(A) PVD market

(B) Ratio B/A

Potential PVD Market

d dies had already got twas around 5.4

dies to PVD market for s can be in the same way. So the 0.1

ndustry, severa ce harde ding or T are b

Cutting Tools 278.8 15.4 5.5% 12.5

Molds & Dies 2,909.5 5.4 0.19% 23.6


Potential of PVD coating services

5.4

12.5

23.6

15.4

0

5

10

15

20

25

30

35

Shank Tools & Inserts Molds & Dies

PVD market Potential PVD Market

millio

n E

uro

s

3. Prospects for the PVD market.

a will get bigger than now by 50% at the lowest level to 200% at the maximum.

ectations for the future of PVD market and their plans to buy additional PVD systems.

All of PVD coating service providers have expected that in 5 years, the market of PVD in Kore

For their expectations, they have the plans to buy 1 to 5 PVD coating systems in 5 years. They said that the PVD market in Korea was on the growing time. The following figures show the exp


Expectations on the growth of the PVD market in 5 years

0

20

40

60

80

100

120

140

160

180

200

[%

]

Eltron Top

tech

Korea

OSG

Borim

Plasma

Hyoshin

Metal

Donghae


No. of PVD systems being used in Korea

15

5

2 21

34

2

0

2

4

6

8

10

12

14

16

No.

of

PVD

sys

tem

s[ea.]

]

Woosong

Tech

DonghaeHyoshin

Metal

Korea

OSG

Borim

Plasma

Balzers

Korea

Eltron Top

tech



No. of PVD systems to be purchased in 5 years


4. PVD Coating Service Providers

There are many companies which provide PVD coating services in Korea, but the number of main companies is less than 10 while others are very small size companies. The following figure is showing the market shares of PVD coating service providers. In the Korea market of PVD, there is an absolute power company which takes more than 1/3 of all PVD market in Korea. It is Balzers Korea. Its turnover in 2004 reached 12 million Euros, and it has strengthened its base for the market with enough capitals and the world top level of technology about PVD. It is providing PVD coating service to top companies in Korea such as YG-1. YG-1 is the biggest manufacturer of shank tools in Korea. More than 70% of shank tools produced by YG-1 go to Balzers Korea for PVD coating. The annual cost for the PVD coating in Balzers Korea amounts to 16 million Euros. Other companies such as Donghae Plasma suggested PVD coating for the goods of YG-1, but they failed to get orders from YG-1 because they were not ready for serving constant high qualified PVD coating for their customers. Even CemeCon China was not eligible for the PVD service provider for YG-1 for the same reason. YG-1 got several suggestions of 30% lower price than that of

Eltron Top

tech

Korea

OSG

Borim

Plasma

Hyoshin

Metal

Donghae

3

2

5

1

2 2

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

추가구입대수

[ea.]


Balzers Korea from oversea PVD service providers. At the same time, YG-1 has its plan to get in-house PVD coating systems in near future like its competitors including Korea OSG, TaeguTec and KORLOY.

Market Shares of PVD Coating Providers in Korea

37%

6%5%5%4%3%2%

38%

Balzers Korea Eltron DongHae Plasma

Hyoshin Top Tech Korea OSG

Borim Plasma Others

Company

Balzers Korea

Address/

5B-3,4,5 a-youn hansan gibang dangy 833, Hansan-ri Cheongbuk-myeon, Pyeongtaek Si,

Gyeonggi-Do, Rep of KOREA www.balzers.co.kr

Phone Number 82-031-680-9900

Fax 82-031-683-9905

CEO Kim Jong-Sung

Head of R&D Jung Yong-Tae

Turnover 12 million Euros

Number & Types of Machine 10~12EA for Cutting Tools and Molds & Dies

4~5 EA for automobile components

Industry, area of application Cutting Tools, Molds & Dies, Forming Tools, Automobile

Components


http://www.balzers.co.kr/

5 years potential (in number of additional

systems)

Balzers Korea has opened the new PVD coating service factory for the automobile components

Existing Coating Service Volume

20 ~ 25 tons/day

Further Potential within 5 years

for coating service More than 50%

Remarks

This company has the top level of technology, experience and capital, which made it No. 1 company in PVD market in Korea. The quality of its PVD service is considered as the best but the price is thought as high relative to oversea PVD coating service providers. Recently it seems to concentrate its efforts on automobile components with Korean car makers like Hyundai and GM Daewoo.

Company ELTRONINC

Address 706-7, Yang-ri Yuga-myeon, Dalseong-gun,

Dae gu, Rep of KOREA www.eltroninc.com

Phone Number 82-053-615-7811~2

Fax 82-053-615-7813

CEO Paek Un-Seong

Head of R&D Im Sang-Won

Turnover 1.84 million Euors

Number & Types of Machine Arc type : 5 EA

Industry, area of application Cutting Tools, Molds & Dies, Forming Tools,

Automobile Parts

5 years potential (in number of additional systems)

3~5

Existing Coating Service Volume 3~4 ton/day

Further Potential within 5 years for coating service

More than 200%


http://www.eltroninc.com/

Remarks

The fastest growing company in the PVD coating service market. The founders of EltronINC are from KIMM(a Korea national research center), which give EltronINC the most powerful background of PVD technologies. In 2004, its turnover showed a dramatic jump.

0

0.5

1

1.5

2

millio

n E

uro

s

2003 2004

Turnover of Eltron

Company HyoShin Metal

Address B-428, Hansung Sangga609-1, Guro-dong, Guro-gu,

Seoul, Rep of KOREA http://www.hyoshinmetal.com/

Phone Number 82-02-2672-5875

Fax 82-02-2672-2264

CEO Choi hyuk

Head of R&D Kim Gun-Ho



HCD type : 2 EA

Industry, area of application Cutting Tools, Molds & Dies, Hob, Forming Tools,

Automobile Parts


systems) 2


http://www.hyoshinmetal.com/


2~3 ton/day


50 ~ 100%

Remarks

Company Korea OSG

Address 358-48, Galsan-dong, Dalseo-gu, Daegu, Rep of

KOREA http://www.osg.co.kr/

Phone Number 82-053-583-2000

Fax 82-053-583-2233

CEO Jung Tae-Il

Head of R&D Kim Ku-Keun



Industry, area of application Cutting Tools


systems) 5


3,000 EA/day (for cutting tools)


100 ~ 200%

Remarks

Korea OSG is one of the manufacturers producing shank tools and it has in-house PVD coating systems in its factories. It uses the PVD coating equipments only for its own shank tools.


http://www.osg.co.kr/

Company Top Tech

Address 95-87bunji, Sillim 2-dong, Gwanak-gu, Seoul,

Rep of KOREA http://www.toptech21.co.kr/

Phone Number 82-02-887-3964

Fax 82-02-884-2556

CEO

Head of R&D Mun Chang-Sung



HCD type : 1 EA

Industry, area of application Cutting Tools, Forming Tools, Decoration


systems) 2


1~2tons/day


50 ~ 100%

Remarks

Company Borim Plasma

Address Daeryeong Techno Tower 8-Cha, 481-11 Gasan-

dong, Geumcheon-gu, Seoul, Rep of KOREA

Phone Number 82-02-2163-8633

Fax 82-02-2163-8635

CEO Sung Suk-Won

Head of R&D N/A


Number & Types of Machine HCD type : 1 EA

Industry, area of application Cutting Tools, Forming Tools,

Molds & Dies


http://www.toptech21.co.kr/


systems) 2


4~5 batch/day


100 ~ 200%

remarks

Company Donghae Plasma

Address 44bunji, Nowon 3-ga, Buk-gu, Daegu, Rep of

KOREA http://www.donghaeplasma.co.kr/

Phone Number 82-053-354-5921

Fax 82-053-354-5925

CEO Kwon Byung-Chul

Head of R&D Hong Chang-Pyo


Number & Types of Machine NACHI : 4 EA

Industry, area of application Cutting Tools, Punches,

Molds & Dies, Automobile Parts


systems) 2


1~2 tons/day


100~200%

remarks


http://www.donghaeplasma.co.kr/

IIII. Conclusions

1. Main markets of PVD coating services in Korea are tools and molds & dies.

2. The industries of tools and molds & dies have continuously grown, which means that the PVD market expands.

Production growth rates of Tools

2003 ~ 2004 2004~ 2005 (E)

Total Tools 13.4% 12.8%

HSS - Super Hard Alloy Tools 13.3% 13.9%

Growth rates of molds & dies

2000 ~ 2001 2001 ~ 2002 2002 ~ 2003 2003~ 2004

Production 8.7% 18.2%

Export -1% 18% 37%

3. Shank tools and Inserts are the main areas of tools for PVD coatings in Korea, having the production of 123.8 million Euros and 153.8 million Euros respectively in 2004.

4. The domestic production of molds and dies reached 2,909.5 million Euros in 2002 and the export of them showed continuous growths, 18% for 2002-2003 and 37% for 2003-2004.


5. The overall market of PVD amounts to 32 million Euros and the components of the market are shank tools & inserts (48%), molds & dies (17%), punches (15%), hob (8%), automobile components (7%) and others (5%).

6. The Korea PVD markets for shank tools & inserts and molds & dies have the high possibilities of growth, expected to get potential of additional amounts of about 12.5 million Euros and 23.6million Euros respectively.

7. It is expected for PVD market in Korea to show 100~200% growth in 5 years.

8. Several major manufacturers of shank tools and inserts have in-house PVD coating systems for their products and plans to purchase additional PVD systems in 1 or 2 years.

9. Among PVD coating service providers in Korea, only Balzers Korea is able to provide constant high quality PVD coating service.

10. Automobile components are the area of fast growing market for PVD coating service.


Documents

Final Paper PVD Market Research in South Koreainfoskorea.com/admin/attachfile/PVD_Market(South_Korea).pdf · Korea tools market usually classified by diamond tools, HSS (high speed