Improving metal mechanics cluster capabilities in the State of Chihuahua (Die & Mold)

2014 KSP with Mexico

Su-Jin Kim

Dep. of Mechanical Engineering

Gyeongsang National University

Final Reporting Workshop

May 14th 2015, Mexico city

I. The State of Chihuahua

Introduction

Background and Objectives

3

Background: Die/Mold & tooling imports reached $2,630 million in 2012

1) The inability to produce Die & Mold creates dependency on producers and often

limits the performance of the advanced local manufacturing capacities.

Objective : This project seeks to improve three main challenges of the metal mechanics

sectors related to the die and mold processes.

1) Benchmarking training and education program for the technical schools

2) Strategic formulation of government policies to develop Die & Mold sector

3) Connecting local SMEs and Korean enterprises

Chihuahua Institute of Technology

4

1) Chihuahua institute of technological has department of mechanical engineering.

2) The school offers master’s level course in mechanical and electrical engineering in the field

of graphic research and robotics.

3) The students are qualified to become a process analysis engineer.

Training and Education

Technological University

1) The university is a training ground for students aspiring to become a technician and

provides two-year training programs.

2) The university is equipped with necessary equipments for trainings such as milling, CNC

milling, grinding machine, sink electric discharge machine, plastic injection machine and

has faculty members who have experience in industry as well as training students.

3) The university will benefit from a mold education program from Korea Polytechnics if it is

able to employ professors on sabbatical leave.

CENALTEC

5

1) CENALTEC trains manual assembly process to the newly recruited workers in 20 aircraft

industries.

2) Best equipment: The center boasts 10 CNC milling(HASS, MAKINO), 10 turning center, wire

electric discharge machine, CAD/CAM software(NX), and two plastic injection machine

required for mold processing.

3) Poor mold technology: Two basic mold-producing rectangular plastic boxes have been

developed through joint collaboration. The standard mold base set was imported from the

US of which the delivery took two months. There are concerns as to whether shrinkage or

deformation might occur during the injection process.

4) Open to mold business: If Korean mold design engineers do business on equipments, local

plastic companies will be able to develop automotive part and supply to OEM enterprise

which will trigger technological transfer to CENALTC.

Training and Education

Visited International Enterprise in Chihuahua city

6

Mold Industry

1) Big enterprises assemble plastic and metal parts to the module of Automotive and Home

appliance.

2) Die and mold are imported from Asia or USA rather than local mold producers.

3) Used molds are repaired in a small tool room within the enterprise.

4) Pace industries (die casting), TRW automotive (steering wheel), Manesa (press)

Visited Local SMEs in Chihuahua city

7

Mold Industry

1) Sheet metal stamping: Prototype in FabLab, Mass production with progressive die (Strong)

2) Plastic & aluminum molding: 1 mold maker, 1 mold repair, 3 NC machining

3) The Mold repair is a thriving business in Chihuahua. There are hundreds of plastic injection

machines and ten die casting machines. Mold must be repaired in a week. (Strong)

4) The mold producers were unable to supply to international companies due to higher price

compared to China. (Weak)

5) CADISA(Progressive Die), PALOMINO(Machining), HASI(Mold repairing), CBQ

Technology(Rubber mold), Altaser Aerospace(5x Machining), Plasti-contemedores(Mold

maker)

Mold SMEs in Mexico (2013)

8

1) Visited Die & Mold companies at Queretaro, Saltillo and Monterrey in 2013.

2) Mexican die & mold companies focused on repairing. They showed weakness in design and

machining of new mold, due to high price, slow delivery, and underdeveloped technology

compared to imported mold. In contrast their forte was in maintenance & repair activities

on broken mold that required prompt service.

3) Korean die & mold companies showed considerable strength in price, delivery time, and

quality, but were weak at maintenance services due to long distance. Symbiotic relationship

may arise if Korean die & mold producers export to Mexican partners and Mexican partners

maintain the mold.

Mold Industry

II. Korea’s Similar Experiences

What is Die & Mold?

10

1) Die & Mold is a tool used to produce large quantities of same products.

2) Automobile, television and home appliances are produced by large quantities of Die & Mold.

Blow Mold Diecasting Mold

Press Die Forging Die Plastic injection Mold

Korean war, LG chemical, TaeguTec, 1st Die & Mold companies started business

60 years of Korean Die & Mold

11

1960s

Milling & lathe (whacheon.com), Injection molding machine(dongsin)

Electric discharge machining, Standard moldmase, Die & Mold training school (Polytechnic II)

NC machine tools, Korea Die & Mold Industry Cooperative (KODMIC)

CAD/CAM & CNC, Wire EDM , Tungsten carbide tool, Die steel

Export $210million > import $190 million in 1994

Huge mold for automobile, Precision mold for electronics,

1,379 die/mold companies. Export $3,228 million >> Import $158 million in 2014

1970s

1980s

1990s

2000s

ⓒ 30 years history of KODMIC

1950s

ⓒ www.koreamold.com

20 years Export & Import

12

1) The exports $210 million exceeded the imports $190 million first in 1994.

2) The export is increasing 16% every year from 2009.

3) Korea exported $3,228 million in die & mold and imported $158 million a year 2014.

123 210

616

1,223 1,452

1766

2,248 2,512

2,676

3,228

139 190 68 151 140 135 140 152 164 158

0

500

1000

1500

2000

2500

3000

3500

1990 1994 2000 2005 2009 2010 2011 2012 2013 2014

Export

Import

million $

year

Die & Mold Companies of Korea

13

1) There are around 1,379 Die & Mold companies (over 10 employees) in Korea (2012).

2) 53% of companies are located around Seoul-Incheon. 21% around Busan.

3) The total employees are 36,832 and the average number of employees in a company is 27.

53.3% Companies are

locating nearby Seoul Gyeonggi

81 (5.9%)

32 (2.4%)

20 (1.4%)

509 (36.8%)

289 (20.9%)

202 (14.5%)

20 (1.4%)

85 (6.1%)

Incheon

Seoul

Daejeon

Chungnam

Chunngbuk

Daegu

Gyeongbuk

Busan

Ulsan

Gyeongnam

Jeonbuk

Gwangju

Jeonnam

Gangwon

2 (0.1%)

145 (10.5%)

ⓒ www.koreamold.com

Die & Mold Companies of Korea

14

1) The total production volume was $7,086 million in 2012 based on the companies with 10 or

more employees.

2) The portion of plastic mold and press die is 75.2%. The production volume of plastic molds

is $2,948 million and press die is $2,385 million.

3) The average growth rate was 9.5% during 2009 to 2012

Plastic

Molds, 2,948

Press Dies,

2,385

Diecasting

Molds, 129

Other, 888

Standard

Parts, 740

Total $7,086 million in 2012

ⓒ www.koreamold.com

ⓒ www.koreamold.com

Export of Korean Die & Mold

15

1) Korea exports about 37% of its total die and mold production.

2) The export volume ratio is about 63% in Asia and about 7% in Mexico.

Japan 17% China 17%

India 9% Mexico 7%

USA 7%

Malaysia 4%

Indonesia 3%

Vietnam 5%

Brazil 3%

Russia 3%

Turkey 3%

ⓒ www.koreamold.com

World’s Mold Export and Import

16

1) Korea was the world’s second largest die and mold exporting country in 2014

2) Export: China 4,926 > Korea 3,228 > Japan 2,908 > Germany 2,553 > USA 1,431 (2014)

3) Mexico imported $2,630 million in die & mold and tools (2012).

4) Import : USA 3,093 > Mexico 2,630 > China 2,599 (2012, 2013)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

China Korea Japan Germany USA

million $ Export

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

USA Mexico China

million Import

Demand Industries of Die & Mold

17

1) Korea Die & Mold companies increased with the automobile and electronics industries

using molds for mass production.

※ Source : Survey on Mold Industry Status, Korea Die & Mold Industry Cooperative, 2012

Semiconductor

Office

Supplies

Household

Item Others

Automobile

Home

Appliance

IT Device

Supporting Industries of Die & Mold

18

CAD/CAM Precise Machining Production

asis.co.kr

NC Machining hwacheon.com

Simulation NCBrain.com

EDM kojin.co.kr

Noldbase Kishin.com

endmill taegutec.co.kr

Press simpac.co.kr

Injection dongshin.net

Plastic lgchem.com

Sheet metal posco.co.kr

1) The machine tools and material technologies supporting die and mold are well developed.

Korea Polytechnic II

19

1) Department of die & mold opened in 1974 and offers 2 years program.

2) 90 students design and fabricate die & mold to graduate.

incheon.kopo.ac.kr

Korea Polytechnic II

20

1) The education programs : 60% technology training + 40% lecture.

2) Training and education program of the Chihuahua technological school will benchmark the

Department of Die & Mold Design in “Korea Polytechnic II”.

Semester Lecture Practice

1st Injection mold

Stamping die

Precise metrology

Mold drafting

NC machining

Basic machining

NC machining

3d Modeling

CAD practice

2nd Mold manufacturing

Mold material

Product design & post process

Mold develop project1

CAM practice

Precise part machining

3rd Precise mold design

Precise machining

Mold element design

Mold develop project 2

Mold manufacturing

Mold design, Product design

4th - Mold develop project 3

Assembly and repairing

High speed machining

Process analysis

Korean Die & Mold Industry Cooperative

21

1) The “Korean Die & Mold Industry Cooperative” was launched in 1980 and has 553 member

companies in 2014.

2) “InterMold Korea” began in 1980 and 22th InterMold Korea was held on March 10 2015.

koreamold.com intermoldkorea.com

Mold Valley

22

1) Bucheon city developed a mold industrial complex named “Mold Valley” in 2009.

2) 65 die & mold companies are co-working at the mold valley.

3) Korea Mold Center is built at the center of the Valley.

Mold Valley

Bucheon city

Mold Valley

Korea Mold Center

Mold Valley Area : 290,000 m2

Mold: 65 companies Other: 9 companies Employ: 1,700 persons Korea Mold Center

Korea Mold Makers

23

1) Mexican government officers visited Illwoo precision, NCBrain and Keonwoo precision.

2) Die and molds are used for mass productions of automotive structure and instruments

Sheet metal Plastic

Gun drill

24

Specialization

Mold design

NC Machining NC machining

Mold design

EDM EDM

Polishing assembly

Test injection

Polishing

Mold maker Outsourcing Standard

Standard elements

Standard mold base

III. Policy Recommendations

26

Policy to foster Die and Mold SMEs

1) Competition and specialization of local Mold SMEs

2) Mexican mold industry association

3) International mold exhibition in Mexico : MoldMex 2016

A. Short-term policy to mold SMEs

Mold SMEs Mold Association MoldMex 2016

Cooperation Specialization Competition

Advertise Buy together Share knowledge

Mold makers Element companies Plastic companies Machine suppliers

27

Policy to foster Die and Mold SMEs

1) SME use equipment of Technological University and CENALTEC

2) Chihuahua mold valley

3) Mold development R&D

B. Long-term policy to government

Share Mold Valley Mold R&D

Technological University CENALTEC

Near university Common equipment

Mold development R&D funding

28

Policy to foster Die and Mold SMEs

1) SME use equipment of Technological University and CENALTEC

2) Chihuahua mold valley

3) Mold development R&D

B. Long-term policy to government

Share CENALTEC Tech. Univ.

Mold Valley Mold SMEs

R&D Fund Develop Mold

29

Policy on training and education

A. Technical high school and training center

Technical high school

CENALTEC

Mold Technician

Mold Technology

General Technician

Tech. Training Retired mold

engineer

Local SMEs

Spanish

1) Technical high school train general technology

2) CENALTEC employ retired Spanish mold engineers and start mold training program

30

Policy on training and education

B. University level education

Technological Universities

Institute of Technology

Design&Analysis Engineer

Professor + Translator

Basic mechanics

Mold making Technologist

Mold education Korea

Polytechnics

Tech. training Local SMEs

Gyeongsang Nat. Univ.

Summer school

Process analysis

1) Technological Universities invite professors from KP to stat mold education program

2) Institute of technology send students to GNU to learn process analysis

31

Policy on Mexico Korea partnership

A. Match making of local SMEs and KODMIC

1) 3 companies (CADISA, CBQ Technologies, HASI) joined MOU with KODMIC at March 2015.

2) Chihuahua mold makers get order of OEM companies and makes mold with Korean

technology

CADISA

CBQ Tech.

HASI

International Enterprise

Korea die & mold industry cooperative

600 enterprises

Design & Fabrication Maintenance

Stamping Die

Injection Mold

Injection Mold

+

32

Policy on Mexico Korea partnership

B. SMEs + University + Korean mold maker

1) Chihuahua local SMEs starts maintenance service and mold making business with the

equipment of Technological University and technology of Korea mold makers

Supply

Korean mold makers

Local SMEs

Technological University

Technology Mold design

Customer data Maintenance

Experience Training

Facilities Worker

Inte

rnational ente

rprise

Export

Repair

Worker

33

Policy Recommendations

C. Korea Mold Technology Center in Mexico

1) Mexico rent building (80 x 20 x 8 m) for 15 years + Korea establish Mold Technology

Center with 20 equipment($4 million)

2) Mexico learn Korean mold technology. Korea exports and maintain mold to automotive

company in middle Mexico

Mexico

Building 1,600 m2

8 m

Korea

Technology & 20 equipment

34

Policy Recommendations

C. Korea Mold Technology Center in Mexico

1) Korea Mold Technology Center become a partner of Mexican mold companies and trains

automotive mold repairing technology in the space with the equipment of the center.

Korea Mold Technology Center

Local mold SMEs

35

Policy on Mexico Korea partnership

D. Sends workers to Korean mold makers

1) If the Mexico government sign a MOU with Korean ministry of employment and labor, mold

technology can be improved

2) Korea has an Employment Permit System (eps.go.kr) which are employing 40 thousand

people from 15 member countries

Minister of employment and labor

Mexico government

1. MOU

Mexican Worker

2. Apply

Korean Mold SME

2. Apply 3. Permission

4. CCVI Korean

Embassy 5. Visa 6. Enter

TOPIC

7. Mold technology

36

Thank you

Professor Su-Jin Kim

Gyeonsang National University

sujinkim@gnu.ac.kr