In the past two decades, with the rise of China’s manufacturing industry and the rise of user industries such as automobiles, 3C, and building materials, China’s die-casting industry has achieved world-renowned achievements. During this period, a large number of die-casting industry chain companies accompanied the development and growth of the industry, and many foreign brands also participated in this process, witnessing the rapid development of China’s die-casting industry. J & S Chemical from the United States is one of them.
Recently, Diecasting Weekly had the privilege to interview Mr. Smith, the president of Jay Chemicals Co., Ltd. (hereinafter referred to as “J & S Chemical”). He expressed to us his views on China’s die-casting market and trade war, introduced the products and services provided by J & S Chemicals for die-casting companies, talked about the competitive advantages of J & S Chemicals, and maintained this advantage to win the international and Chinese markets.
Optimistic about China’s die casting market and invest in China
“Diecasting Weekly”: Looking at the world, what do you think of China’s diecasting market? Will the recent China-US trade environment affect your sales strategy for China?
Smith: For the past ten years or so, I have been to China every year to learn about the market situation of China’s die-casting market, to visit customers, to communicate and cooperate with them. For more than ten years, China’s die-casting industry has been developing at an alarming rate, and each time I see a different change. China’s die-casting technology and technology level, modernization of production equipment, degree of automation, quality of die-casting parts, as well as the quality of employees, factory scale, etc., are constantly improving, and progress has been very significant. In contrast, the industrialized developed countries in Europe have not changed so much in more than a decade.
Recently, I have personally experienced an example. The quality of a Chinese auto parts produced by a die casting process has surpassed that of German companies. In China, we have seen that many die-casting companies have invested heavily in factory facilities, plant construction, production equipment, and personnel training. People in the entire industry are working very hard. China is not only the world’s largest producer of die castings, but also the world’s most promising market. At the same time, the global die casting lean management level and environmental protection technology, including China, have also developed very much. This puts forward higher requirements for our die casting release agents and solid punch lubricant particles. We have also invested a lot The energy is focused on the research and development of emerging areas such as structural parts, micro spraying, and 5G communication products, and there are already mature products.
I am very optimistic about the prospects of the Chinese die casting market. At present, J & S Chemicals sales in China have increased to about 25% of its global sales. Since last year, Sino-U.S. Trade disputes have continued to escalate, and J & S Chemical’s products have increased costs by more than 20% due to tariff issues. This made J & S Chemicals determined to set up a plant in China and has put it on the company’s schedule.
As for the trade war, I think this is a very bad thing, and people around the world should strongly oppose it. Its negative effects have spread from Asia and Europe back to the United States, dragging down global economic growth. It allows us to significantly increase the cost of goods we sell to China. To this end, we are working to reduce our costs through various means to maintain the cost-effectiveness and competitiveness of our products. We will set up a factory in China, which is one of the purposes of my coming to China this time. Localized production is not only an effective way to reduce costs, but also our measure to value the Chinese market and invest in China.
International Leading Specialty Chemicals Supplier
Diecasting Weekly: What products and services does J & S Chemical mainly provide for diecasting companies? What are the advantages of your product?
Smith: J & S Chemicals is an international leading provider of special chemicals in the areas of die casting and casting, metal processing and forming. We are committed to providing high performance chemicals and solutions to these professional fields, providing a full range of die casting release agents, casting release agents (solvent, water-based and 100% active ingredient type), solid punch lubricant particles, Products and service solutions for metalworking fluids, metal forming fluids, other special lubricants, cleaning agents, rust inhibitors, etc.
In the die-casting industry, J & S Chemicals provides customers with products such as die-casting special release agents, solid punch lubricant particles, micro-porosity sealed quenching oil, flame-resistant hydraulic oil, trimming lubricant, and heat transfer oil. Among them, our original product, environmentally friendly (dry) solid punch lubricant SHOTBEADS, is known as the synonym of high-end high-performance punch lubricant. In order to maintain our position in this field, we continue to invest in the invention and improvement of hedge lubricants and granulator equipment.
J & S Chemical strives to develop highly innovative and efficient products through practical experience and knowledge accumulation in the die casting industry. Our products are specially developed for die casting by experienced and knowledgeable die casting professionals and chemical experts. It is the result of the joint efforts of the entire team to meet the specific and special application needs of customers.
Maintaining competitive advantage through technological innovation and strict quality control
“Diecasting Weekly”: After many years of deep cultivation of special chemicals, what competitive advantages do you think JS Chemical has?
Smith: Technological innovation is the core value and main competitive advantage of J & S Chemical. At the same time, it depends on our continuous technological innovation and more R & D investment, focusing on the continuous development of high-quality products that meet market needs and meet user needs.
Our competitive advantage also lies in the fact that all our products have adopted environmentally friendly raw materials for many years ago, and the main core raw materials have been developed and produced by our company. In the future, when we set up a factory in China, we will continue to use our research and development technology and quality assurance advantages. The core raw materials and core processes will still be completed and provided by the American manufacturing center. Avoid the impact of peripheral production on quality. In this way, we can not only ensure product quality and prompt and timely delivery, but also effectively reduce the overall cost and better serve our customers in China.
Win the market with quality products and services
“Diecasting Weekly”: According to our statistics, there are hundreds of companies in China for diecasting release agents and cutting fluids, and most foreign brands are also sold in China. How does J & S Chemicals maintain this leading position?
Smith: I think that with the improvement of China’s die-casting level, those mold release manufacturers that win by price will be gradually phased out. Those that focus on research and development capabilities and stable quality, can truly improve efficiency and improve quality for customers in the market Win the competition.
In the past six months, my Chinese colleagues have told me that in the Chinese market, some competitors have adopted more vicious competition methods, for example, they like to use defamation, slander and other bad competition methods to achieve their own profit competition. I think this is a very rare phenomenon in markets outside of China, which will lead us to the progress and development of the entire industry in the wrong direction.
I have told our Chinese colleagues many times that J & S Chemical will never win. At this time, what we need to do is to improve our own service and technology level and quality assurance ability, to bring more and better quality and stable products and services to customers, which is the guarantee for the long-term development of the enterprise.
I always believe that healthy competition that promotes and competes with each other in quality, technology and service can bring about the improvement of the overall quality and technology of the industry. In the next step, we will strengthen the communication and exchange with the die-casting companies, let them understand the philosophy and culture of J & S Chemicals, and really help our customers’ enterprises to improve efficiency and reduce their costs through our professional chemical knowledge and technical services. overall costs.
In the future, J & S Chemical will continue to maintain its competitive advantage. We will strengthen technological innovation, product quality, and continuously improve its service level, strengthen professional systems and new technology training for global sales and service teams, and provide customers with better services. Win-win cooperation and common growth with customers.
Mr. Smith, President of Jay Chemicals: Expressed his views on China’s die casting market and trade war, introduced the products and services provided by J & S Chemicals for die casting companies, talked about the competitive advantages of J & S Chemicals, and maintained this Advantage to win the international and Chinese markets.
