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How can Europe's veteran die-casting mold companies achieve lightweight manufacturing of automobiles?
From July 19th to 21st, 2017, the 12th China International Die Casting Conference & Exhibition (CHINADIECASTING2017) took place grandly at the Shanghai New International Expo Center. This event served as a platform to showcase the cutting-edge die casting equipment, processes, and technologies in the industry.
With the growing global emphasis on energy conservation and emissions reduction, lightweight construction has become crucial for achieving these goals. Ensuring vehicle strength while reducing weight to meet stringent crash test and safety standards has become a key challenge for Original Equipment Manufacturers (OEMs). Lightweight die-cast structural parts have emerged as a focal point in the automotive industry, drawing significant attention both domestically and internationally. During the conference, Guangzhou Dezhi Metal Products Co., Ltd., a wholly-owned subsidiary of the Swiss DGS Group in China, stood out among numerous exhibitors with its high-quality magnesium die-casting structural parts and superior craftsmanship.
As a century-old European die-casting company, how does Guangzhou Dezhi maintain its success? "Our success lies in our ability to satisfy customer needs and implement technological and capacity planning," stated Song Chengliang, Managing Director of Guangzhou Dezhi Metal Products Co., Ltd., during an interview with a Geeze reporter. "We are dedicated to providing the best technology, logistics, and cost solutions to add value for our customers. A reliable and efficient logistics and quality management system is essential for maintaining consistent customer satisfaction."
Guangzhou Dezhi employs three key techniques to promote automotive die casting. Currently, under the global trend of lightweighting and energy efficiency in the automotive sector, lightweight structural parts have become a highlight in the die-casting industry. Magnesium and aluminum alloys, as prime examples of lightweight materials, are ideal for automotive parts due to their low weight, excellent shock absorption, and casting properties. They enable automatic production, offer long mold life, and maintain dimensional stability. Leveraging over 80 years of expertise in producing high-quality die castings using various light alloy materials, Guangzhou Dezhi provides aluminum structural parts and intricate, compact, thin-walled magnesium alloy components to the automotive industry.
At the Die Casting Show, Guangzhou Dezhi highlighted automotive lightweighting and presented the latest structural products from its factories in Switzerland and Guangzhou. These included high-quality aluminum and magnesium alloy die castings for automotive applications, covering body components, front and rear modules, steering systems, dashboard assemblies, hand brakes, and gearshift systems.
As a domestic provider of high-end die-casting products and solutions, Guangzhou Dezhi offers advanced die-casting technology, mold design, and production processes that are highly valued by globally renowned automotive manufacturers. Regarding this, Mr. Song Chengliang remarked, "Our production is highly automated. Based on this foundation, we possess three significant technical advantages. Firstly, we utilize unique mold designs to achieve more economical production using smaller-tonnage die casting machines. Secondly, we employ high vacuum die casting and, leveraging our extensive experience in structural part production, collaborate with suppliers to design efficient and reliable heat treatment equipment to meet customers' demanding mechanical property requirements. Thirdly, our comprehensive machining and assembly processes allow us to offer integrated solutions to our clients."
Additionally, Mr. Song Chengliang disclosed that this year, Guangzhou Dezhi will introduce an advanced international electronic information management system to enable automatic monitoring and traceability throughout the production process of structural parts.
For nearly a century, Swiss DGS Group has been a renowned global supplier of light alloy (magnesium and aluminum alloy) die casting solutions and products, particularly excelling in automotive structural parts, where it holds a leadership position. The group primarily supplies automotive aluminum and magnesium alloy die castings to renowned car manufacturers like Volkswagen and DaimlerChrysler, with over 40% of its production destined for Audi, BMW, and Mercedes-Benz brands. In mid-2014, DGS Guangzhou Co., Ltd. began supplying bulk automotive structural parts to major automobile plants in China, becoming one of the few die-casting companies in China capable of mass-producing automotive structural parts.
Founded in 1925, the predecessor of the DGS Group was the “Laboratory†established by the Buhler Die Casting Department in Uzwil, Switzerland. In 1950, it relocated to St. Gallen. In 1999, the die-casting factory was acquired by the "Von Roll" Group and operated independently in 2003 through a Management Buyout (MBO). Von Noel die-casting company merged with ALUPRESS in the Czech Republic and officially renamed itself DGS Die Casting Systems AG. In 2005, the company commenced production of automotive structural parts. In 2007, it established a wholly-owned subsidiary in China, Guangzhou Dezhi Metal Products Co., Ltd., to serve major customers locally.
Currently, DGS operates three production bases worldwide, located in Switzerland, the Czech Republic, and Guangzhou, China. "Established in 2007 in Nansha District, Guangzhou, Guangzhou Dezhi is a wholly-owned subsidiary of DGS Corporation in China. The initial goal of setting up a plant in China was to meet the local supply demands of major customers. In 2013, DGS Corporation developed a clear China development strategy and heavily invested in capacity building and technical upgrades at its Chinese facilities." Mr. Song Chengliang explained, "In just four years, Guangzhou invested nearly 150 million yuan, with sales increasing almost tenfold. Primarily, the company supplies aluminum and magnesium alloy die castings used in automotive body structures, front and rear modules, steering systems, dashboard assemblies, hand brakes, and gear systems to domestic automobile manufacturers."
Over the last few years, Guangzhou Dezhi has gained recognition from its customers. Since 2016, the company has expanded its sales and project teams, improving feedback and communication efficiency, thereby fostering stronger relationships with all clients. Consequently, many customers have rated Guangzhou Dezhi as a Class A supplier. In the field of structural parts, apart from Beijing Benz, Guangzhou Dezhi also secured new projects with FAW Audi. The project is progressing smoothly and is scheduled for mass production in early 2018.
When asked about the decision to participate in the die-casting exhibition this year, Mr. Song Chengliang expressed the hope to introduce high-quality die castings and solutions from Switzerland to Chinese users via this international platform. "In recent years, due to the large number of projects, we have been deeply engaged in internal management and optimization, which has led to a lag in marketing activities. This is the primary reason for our participation this year. We aim to demonstrate DGS Group's capabilities and programs through this exhibition to significantly boost the brand's visibility."
Localization and innovation play a crucial role in the development of the automotive market. Guangzhou Dezhi boasts an outstanding team of management and technical experts, leading the world in automotive die casting technology. Always prioritizing customer needs, the company innovates its products professionally and continuously enhances product quality to meet client expectations. Mr. Song Chengliang noted, "In 2013, we established the mold design and manufacturing department and achieved local design and manufacture of virtually all molds. This made us the first domestic European and American die-casting enterprise with independent mold design and manufacturing capabilities. Last year, we initiated the establishment of an R&D center, which is now operational. Currently, our mold department has an annual production capacity of over 60 sets of molds, fulfilling not only our local production needs but also exporting to Europe."
As a global supplier of light alloy die-casting structural parts for the automotive industry, Mr. Song Chengliang shared his insights on the evolving Chinese automotive market. He mentioned that in 2016, the overall growth of the Chinese automobile market exceeded expectations, reaching a new high. SUV sales remained robust, with passenger vehicle sales totaling 24.3 million units, a 14.6% increase from 2015. In terms of vehicle models, SUVs and MPVs continued to grow rapidly at rates of 43.7% and 16.2%, respectively, while passenger car growth was sluggish, increasing by only 2.9%, and microvans declining by 37.1%. "The domestic market is witnessing intense competition among foreign automakers, with the high-end car market experiencing fierce rivalry. Additionally, advancements in automobile technology are accelerating, and the trend toward lighter vehicles is spreading across the industry. Many internet companies are entering the automotive sector, with new energy vehicles, autonomous driving, and smart cars advancing at unprecedented speeds."
Speaking of the future development trends in lightweight materials for automobiles, Mr. Song Chengliang stated, "From the perspective of energy-saving and emission reduction regulations, the overall weight reduction of the new generation of car bodies exceeds the general application of aluminum parts in the powertrain field. The demand for new-energy vehicles in terms of cruising range presents new opportunities for parts and components companies offering lightweight materials. As the lightest metallic material, aluminum-magnesium alloys possess higher specific strength and better shock absorption properties. Their application in lightweight structures such as body panels, chassis, steering systems, dashboards, battery packs, interior and exterior trims, and motor housings will become more widespread."