Global automotive magnesium alloy
industry in recent years is getting out of the shadow of the financial crisis
and magnesium price skyrocketing, both production and consumption have been
restored. Favorable factors such as the rapid recovery of American and Japanese
automobile industry, the upgrading of product structure of China’s automotive
industry, international magnesium-aluminum price ratio back to less than 1.3,
and the lightweight of vehicle all have provided impetus for the rebound of
automotive magnesium alloy market. In 2012, the global automotive magnesium
alloy consumption reached 214,000 tons, a year-on-year increase of 4.9%. During
this period, China with rich magnesium resources and a huge automotive industry
has become a hot spot for investments in the industry.
After 2008, affected by the
increased tax rate of magnesium alloy exports as well as the rapid development
of automobile industry, China’s automotive magnesium alloy industry showed
contrarian growth against the financial crisis worldwide, thus changing the
previous situation that domestic magnesium alloy auto parts mainly relied on
imports. In 2012 China’s capacity of magnesium alloy auto parts reached 47,000
tons/a, and the demand over the corresponding period was 45,000 tons, a basic
balance between supply and demand. However, as a great number of automotive
magnesium alloy producers in China are the new entrants with weak technical
reserves and products concentrated in the middle and low ends, high-end
automotive magnesium alloys still depend on imports.
In nowadays China, joint venture
branded vehicles occupy the main medium- and high-end market, which is precisely
the most important consumer market for automotive magnesium alloy. These
automakers are extremely concerned about the supply quality and stability of
automotive magnesium alloy, which is also the basic literacy that some new
manufacturers lack. For these reasons, magnesium alloy parts used in joint
venture branded vehicles are often provided by regular suppliers, which
increasingly becomes an obstacle to the development of new entrants. Moreover,
products of Chinese firms are mostly concentrated in magnesium alloy wheel,
steering wheel and other several products, with relatively single variety and
narrow coverage, which to some extent also limits their development.
In China, following the structural
upgrade of automobile industry, a step-by-step increase in the proportion of
medium- and high-end cars, the clearer trend of automotive lightweight, the
gradually improved production technology of automotive magnesium alloy, coupled
with the effect of cancelling magnesium alloy export duties in January 2013 by
China Customs, the demand for automotive magnesium alloy is expected to achieve
sustained growth in future.
In addition to a detailed analysis
on the development status of the global and China automotive magnesium alloy
industry, this report also highlights the automotive magnesium alloy business
of five multinational companies i.e. Meridian, STOLFIG, TAKATA, Autoliv and GF
as well as 21 domestic companies e.g. Nanjing Yunhai Special Metals Co., Ltd.,
DongGuan EONTEC Co., Ltd. and Shanghai Meridian Magnesium Products Co., Ltd..
In response to the financial crisis,
Meridian as the global automotive magnesium alloy industry leader has
implemented strategic adjustment in industrial distribution since 2009, which
has significantly improved capacity in key areas. In 2011, Meridian expanded
operations in the UK and raised the capacity of local factories twice that of
2010. In May, 2012, the production capacity of Meridian’s joint venture in
Shanghai, China saw an increase of 20%; followed by another rise of 30% in
early 2013.
Beijing Guangling Jinghua Science
& Technology Co., Ltd. (also known as “Gonleer”) is one of the major
automotive magnesium alloy manufacturers in China. By 2004, the company has
completed the whole industry chain layout from the upstream minerals to the
downstream smelting and processing. In 2013, its products have covered five
major areas i.e. magnesium and magnesium alloys, sacrificial anode, mechanical
parts, sections and magnesium sheet, with annual capacity up to 50,000 tons,
becoming a supplier of magnesium alloy auto parts for Volkswagen, Hyundai, Ford
and other well-known carmakers.
Relying on its rich resources of
magnesium and magnesium alloys, Nanjing Yunhai Special Metals Co., Ltd. has
also achieved comprehensive coverage of the whole industry chain over the past
few years. As a key supplier of magnesium alloy auto parts for Chery
Automobile, the company reaches capacity of 3,000 tons/a automotive magnesium
alloy in 2013.
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