Parijatha BIEC at IMTEX2013 Bangalore, India Korea Machine Tool
Manufacturers Association January 26 th, 2013
Slide 2
General Information - About KOMMA - Information on Korea -
Korean Economy Korean Machine Tool Industry - 2012 MT trend :
Production, Trade, Consumption - Outlook of 2013 Korean MT Industry
- Korean Economy Success Possibility of Indian MT Industry -
Machine Tools & Components Demand in Korea SIMTOS, the best
Market Place Korea-India Machine Tool Trade
Slide 3
About KOMMA Korea Machine Tool Manufacturers Association
Affiliated organization of Korean Government Members account for
80% of total machine tool production in Korea 2
Slide 4
Location : Strategically located at the crossroads of Northeast
Asia. Korea lies between Japan, the Russian Far East and China.
Location : Strategically located at the crossroads of Northeast
Asia. Korea lies between Japan, the Russian Far East and China.
Population : 50.9 million people (2012) GDP : US$23,679 (34 th,
IMF, 12) 2012 Trade Performance - Exports: US$582 bill. / Imports:
US$555 bill. (Balance: US $ 27 bill.surplus) 2012 Trade Performance
- Exports: US$582 bill. / Imports: US$555 bill. (Balance: US $ 27
bill.surplus) World Leading Korean Industries Shipbuilding (1 st ),
Mobile (2 nd ), Automotive (5 th ), Semiconductor (2 nd ), Machine
Tools (5 th ) World Leading Korean Industries Shipbuilding (1 st ),
Mobile (2 nd ), Automotive (5 th ), Semiconductor (2 nd ), Machine
Tools (5 th ) Korea at a glance Korean Brands: SAMSUNG, LG, Hyundai
Motors, KIA Motors, POSCO Republic of Korea, , Area: 99,720 (South
Korea Only) Republic of Korea, , Area: 99,720 (South Korea Only)
World Standing of Korean Machine Tool Industry Production 5 th,
Export 7 th, Import 5 th, Consumption 5 th 3
Slide 5
Korean Economy Outlook Domestic Economy depressed due to the
decrease of export rate influenced by global economy recession in
2012. However, Economy would recover with active world trades from
the second half of 2013 Domestic Economy depressed due to the
decrease of export rate influenced by global economy recession in
2012. However, Economy would recover with active world trades from
the second half of 2013 Source: KIET (Korea Institute for
Industrial Economics & Trade) KDIKIETKIFLGERIHRIOECD
3.0%3.1%2.8%3.3%3.5%3.1% Year Economic Growth Private Consumption
Facility Investment Currency Rate Export Growth Import Growth
2013(e)3.12.85.11,0795.86.3 2012(p)2.21.6-0.11,123-0.9-0.5 Major
Economic Indices (Unit: %) Projections for 2013 Economic Growth
Rate 4
Korean Machine Tool Industry (In Millions Of US Dollars /
Y-O-Y(%)) YearProductionExportImportConsumption 2012 p 5,720
(1.4%)2,540(10.4%)1,540(-14.0%)4,720(-8.0%)
20115,641(25.4%)2.301(37.2%)1,791(24.1%) 5,131(20.0%)
20104,498(63.1%)1,678(38.4%)1,444(27.4%)4,264(59.2%)
20092,758(-36.%)1,212 (-36.5% ) 1,133(-15.1%)2,679(-29.4%)
20084,372(-9.2%)1,910(5.2%)1,334(-1.3%)3,796(-12.7%) 6
Slide 8
Korean Machine Tool Production US$5,720 million, slight
increase (1.4%) in 2012 Source: KOMMA / (Value: US$ Million)
Economic recession caused by financial crisis in Europe Upward
trend in orders as well as exports in the 1 st half of 2012 On the
other hand, decrease of Investment in the 2 nd half 7
Slide 9
Korean Machine Tool Export US$2,540 mill., the largest Volume
in history (+ 10.4% ) Financial crisis in Europe led to the
decrease in exports to Europe. Active facility investment in US
manufacturing industry and Consistent exports to China led largest
volume Exports Increase: China(1.5%), USA(47.4%), India(29.2%)
INDEX 06070809101112 p Exports (USD million)
1,4251,8161,9101,2121,678 2,3012,540 Y-O-Y(%) 27.827.45.2 -
36.538.437.210.4 Major Exported Korean Machine Tool Products [Y-O-Y
(%)] NC lathes (23.2%), Machining Centers (14.4%), Presses (-10.8%)
8
Slide 10
Machine Tool Exports by Country * Source : Korea Customs
Service (Values in Millions Of US Dollars)
No.Country2001200520072008200920102011 ~Nov. 12
1China56.1333.7496.7503.2494.6721.6729.6671.4
2USA88.4210.3298.6284.5140.3149.2346466.7
3India5.535.2144.8110.786.1120.9167.9190.6
4Germany44.676.9170.9189.260.453.4177.4115.5
5Turkey3.535.146.558.819.236.553.489.6
6Vietnam2.48.613.850.617.840.631.879.2
7Thailand6.93816.7122.420.722.757.665.3
8Indonesia5.610.714.115.514.87.525.938.2
9Japan20.069.054.164.658.145.738.835.1
10Taiwan6.131.434.831.232.262.222.623.3
11Malaysia4.816.518.558.819.236.541.218.1
Total4111,1571,816.31,909.81,212.41,6782,3012,302 9
Slide 11
Korean Machine Tool Imports US$2,540 mill., decrease of 14%
from 2011 Facility investment in Korea continues downward trend
Strengthening Japanese Yen lowered imports from Japan - Imports of
major products such as NC lathes, machining centers, presses etc.
account for 50% of total imports from Japan Index06070809101112 p
Imports (USD million) 1,2981,3511,3341,1331,444 1,7911,540 Y-O-Y(%)
17.94.1 -1.3-15.127.424.1-14.0 Major Imported Korean Machine Tool
Products (Ratio) NC lathes (7.2%), Machining Centers (16.9%),
Presses (7%) 10
Slide 12
Major Exporting Countries to Korea * Source: Korea Customs
Service Index JapanGermanySwitzerlandChinaTaiwan Total Value (US$
Mill.) 764183117100991,540 Ratio (%) 49.611.97.66.56.4100 (2011)
(53.9%)(13.9%)(6.6%)(4.3%)(5.8%)1,791 (2010)
(51.1%)(16.9%)(6.3%)(3.9%)(6.2%)1,444 Y-O-Y
-20.9%-26.5%-1.7%29.9-4.8%-14.0% 11
Slide 13
Imported Products by Country (~Nov. 12) ClassificationNo. 1No.
2No. 3No. 4 NC Lathes Value ($ Mill.) Japan (75)China (6)Taiwan
(5.5)USA (4) Ratio (%) 75.16.15.54.4 Machining Centers Value ($
Mill.) Japan (135)Taiwan (27)Germany (25)Italy (18) Ratio (%)
57.611.710.77.6 Presses Value ($ Mill.) Japan (61)Germany (11)USA
(7.8)China (7.6) Ratio (%) 65.211.88.17.9 NC Grinding Machines
Value ($ Mill.) Japan (81)Germany (17)Switzerland (10)Italy (4)
Ratio (%) 62.913.78.23.3 NC Gear Cutting Machines Value ($ Mill.)
Germany (36)Switzerland (9)Japan (6)China (1) Ratio (%)
67.116.510.62.1 Lathes Value ($ Mill.) Japan (13)Germany (5.7)China
(5)Taiwan (4.5) Ratio (%) 42.519.216.714.9 Drawing Machines Value
($ Mill.) China (20)Italy (8.3)Japan (3.1)Germany (2.1) Ratio (%)
56.323.99.26.1 * Source: Korea Customs Service 12
Slide 14
Korean Machine Tool Consumption (Value: in Millions Of US
Dollars) 13 Product Type20072008200920102011Ratio CUTTING CUTTING
NC Lathes1,210.71,091.1579.8945.5786.215% Machining
Centers930.3877.6544.7888.31,125.021.5% Special Purpose
Machines111.2266.4237.3387.0466.18.9% Milling
Machines69.390.191.4149.1103.32.0% Boring
Machines47.681.368.7112.0120.72.3% Tapping
Machines57.25455.991.242.90.8% Laser Processing Machines
96.493.975.0122.4344.06.6% EDM48.341.541.167.192.31.8%
Sub-Total3,171.42,813.11,902.43,102.64,055.777.4% F O R M I N G
Presses601.7622.7474.8774.4610.811.6% Bending
Machines114.8114.7119.1194.2173.33.3% Shearing
Machines136.8128.165105.990.81.7%
Others629.4458.678.4127.8312.66.0%
Sub-Total1,644.201,558.90855.91,395.71,187.622.6% Total
4,815.74,371.902,758.44,498.35,243.3100% Source: KOMMA(Korea
Machine Tool Manufacturers Association)
Slide 15
Orders of Major End-User Industries (Values in 100 million WON)
End-User Industries 20102011 2012 p
ValueRatioValueRatioValueY-O-YRatio Automobile7,41335.6 %
8,50435.5% 6,989-17.8%38.2% General Machinery3,36316.2 %
3,80315.9%2,916-23.3%15.9% Metalworking2,13210.2 %
2,97412.4%1,893-36.3%10.3% Steel Nonferrous Metals 1,3426.4 %
2,0528.6%1,547-24.6%8.5% Electronics,
IT3,64117.5%2,2159.2%1,409-36.4%7.7% Shipbuilding Aviation
4722.3%1,2795.3%844-34.0%4.6% Precision Machinery
6463.1%8313.5%411-50.4%2.2% Others1,8038.7%2,2899.6%2,2870.0%12.5%
Source: KOMMA (Korea Machine Tool Manufacturers Association)
14
Slide 16
2013 Outlook of End-User Industries Recovery of Exports LTE
Service Expansion New Smart Devices Production : Good (3.6%)
Exports: Good (4.9%) Decrease of total orders Offshore Plant orders
Increase Production : Bad (-5.0%) Exports: Good (4.8%) Sluggish
Demand in USA & EU Operation of factories in Foreign Countries
(Brazil, China) Production: SO-SO (-1.6%) Exports: Average (1.5%)
Next-Generation Growth Engine VISION 2020 for Global Top 7 -
Production $20 bill. Export $10 bill. Technology Development for
Localization 15
Slide 17
2013 Machine Tool Industry Outlook (Values in Millions Of US
Dollars) Production: $6,255 million, +5.1% from 2012 Economic
stimulus program by new governments in China, USA, etc. and growth
of promising countries like India, Turkey, Brazil boost exports.
Facility investment recovers remarkably - 2.2% up in the 1 st half,
10.8% in the 2 nd half of 2013 Increasing demands from end user
industries : Automobile and General Machinery More investment in IT
devices (laptops, smart phones) Consumption: $ 5,196 million, +5.8%
from 2012 Stable export to China and USA Intensive marketing
strategies for niche market like BRICs Export: $2,750 million,
+8.3%, Import: $1,690 million, +9.7% Source: KOMMA(Korea Machine
Tool Manufacturers Association) 16
Slide 18
KOREA-INDIA Machine Tool Trade * Source: Gardeners Publication
Inc.(2012) / Korea Customs Service (Value: US$ million) Export to
India (2011) $167.9 mil. Export to Korea (2011) $0.07mil. 17
Slide 19
Indian Machine Tool Exports to Korea (in Thousands Of US
Dollars) Machine Type 200920102011~Nov. 12 NC Metal Cutting 1158129
NC Lathes 000116 Non-NC Metal Cutting 362013 Drilling Machines 0003
Others 00010 Metal Forming 5817661,380 Presses 01708 Bending
Machines 56066290 Drawing Machines 0001,072 Total 9534751,522 Y-O-Y
(%)-64.6-64.2117.5- 18
Slide 20
Machine Type200920102011~Nov. 12 NC Metal
Cutting14,69654,93478,21193,765 NC Lathes8,56833,95339,39232,079
Machining Centers4,51515,95026,44153,506 Non-NC Metal
Cutting39,3729,78910,90682,56 Lathes771,6132,0171,335 Milling
Machines6433581,113523 Grinding Machines35,3301,1042,0761,015
Boring Machines271,3969,6880 Others2,5563,5133,4263,993 Metal
Forming31,98756,23478,73288,591 Presses12,33115,04040,47960,342
Forging Machines2,7303,1773,38017,761 Shearing
Machines10,41030,57613,7634,244 Bending
Machines2,2533,53815,7984,719 Total86,055120,950167,850190,613
Y-O-Y (%)-22.340.638.850.3 Korean Machine Tool Imports to India (in
Thousands Of US Dollars) 19
Slide 21
Machine Tool Demand in Korea 5-axis machining centers
Multitasking machines, High performance grinding Machines Machining
centers, CNC lathes, Grinding machines, Presses Laser processing
machines Special purpose machines Milling machines, Lathes Sawing
machines, Shearing machines Polishing machines Drawing machines
Germany, Japan, Switzerland, USA Germany, Italy, Japan,, India,
USA, Taiwan, Spain, Switzerland China, India, Taiwan, Thailand
Russia Import $490, Consumption $800 Import $1,000, Consumption
$3,600 Import $300, Consumption $700 (in Millions Of US Dollars)
20
Slide 22
Korean Machine Tool Component Demand Manufacture on their own
Purchase Products Outsourcing Manufacture Machine Tool Components
Ratio(%) Import from Own KoreaForeign Structures & Castings
335413 China CNC devices-1288 Japan, Germany Axis161866 Japan,
Germany, Switzerland Ball screws62976 Taiwan, Japan, Germany LM
bearings-1981 Taiwan, Japan, Germany Slide covers-8218 Taiwan,
Japan ATC145036 Japan, Taiwan APC147313 Japan, Taiwan Rotary
tables132760 India, Taiwan, USA, Germany Tables443719 Taiwan, Japan
Turret tool posts 33607 India, Italy, Taiwan, Japan Couplings-3367
Taiwan, Japan 21
Slide 23
Indian MT Brands around the world NationConsumptionImport
Dependence on Import Exhibition Indian Company '11'10
China38,37013,07034.1%33.1%CIMT 3 co. 216 Ace Designers Pragati
Automation Japan7,620.56488.5%8.9%JIMTOF 1 co. Fenwick & Ravi
Germany6,956.02,921.542.0%40.8%EMO 28 co. 1,457 Ace designers, BFW
USA6,611.94,324.865.4%58.7%IMTS None
Korea5,1311,79134.9%33.9%SIMTOS 21 co. 270
Italy2,963.31,182.539.9%34.2%BIMU None
Taiwan1,80080044.4%43.5%TIMTOS 3 co. Cosmos Impex Pragati
Automoation Fenwick & Ravi 22
Slide 24
Entering Global Machine Tool Markets (Values in Millions Of US
Dollars) Current Status of Indian MT 23
Slide 25
Optimal Market Place, SIMTOS Competitiveness of end-user
industries is decided by Machine Tool Manufacturing Technologies
Worlds Top 5 th Machine Tool Consumer - Korea is well know Machine
Tool Manufacturing Country. However, Machine Tool Consumption
reaches US$ 5.1 bill. - Thriving automotive industry leads demand
(Hyundai, KIA Motors) - Mobile industry: Die & Mold, Display,
Nanotechnology (Samsung, LG) - No.1 Shipbuilding industry (Engines,
Turbines etc.) - Components for general machinery & automotive
SIMTOS is the optimal market place for machine tool manufacturers
as well as end-users held in Korea, The 5 th largest consumer and
producer. 24
Slide 26
Must See Show: SIMTOS Global Pavilion : International MT
Associations - Austria, China, USA, Japan, Taiwan, Italy, Germany 8
nations 10 association Worlds Top Machine Tool Show - Top 32
machine tool companies (Including top 7 companies) - Foreign
Exhibitors: 33 nations, 473 companies (49.2% of total exhibitors) -
National Pavilion: China, Italy, Germany, Taiwan, Japan,
Switzerland, India Meeting Place for Machine Tool End Users &
Manufacturers -Returning Exhibitors: 85.4% -Re-Visiting Buyers:
80.5% 25
Slide 27
SIMTOS HISTORY (Note: The number of visitors since 2002 is
endorsed by AKEI(Association of Korea Exhibition Industry) 26
Slide 28
IndexSIMTOS12KOMAF11BUTECH11 Venue KINTEX BEXCO Exhibition
Space (g) 102,439 48,890 26,508 No. of Visitors 104,71390,41622,449
Korean Brand Show: The Largest and Most Satisfying show SIMTOS
Standing Upgrade to World Leading Machine Tool Show * source: AKEI
IndexEMO11IMTS(12)CIMT(11)SIMTOS(12)JIMTOF(12) Space (g) 306,890
250,000 120,000 102,431 82,660 No. of Exhibitors
2,1201,8001,406763787 No. of Visitors
166,500100,200176,000104,713117,944 27
Slide 29
United Manufacturing Technology with Machine Tools April 17 th
~ 22 nd [6 days] 09:30~18:00 KINTEX, Goyang Korea Slogan Date Place
Visitors SIMTOS2012 Final Report Space Visitors200820102012Y-O-Y(%)
Korean61,868 (95.9%)67,652 (96.0%)100,122 (95.6%)47.9 Foreign2,645
(4.1%)2,856 (4.0%)4,591 (4.45)60.7 Total64,513 (100%)70,508
(100%)104,713 (100%)48.5 28
Slide 30
SIMTOS2012 Brand Pavilions Metal Cutting & Die Mold Working
254 companies, 48,241 Press & Metal Forming 25 companies, 5,300
CAD/CAM, Measuring System, Automation & Robotics 123
companies,11,290 Parts Materials & Motion Controls 141
companies, 11,290 Tools & Related Equipment 154 companies,
13,238 Cutting-off & Welding 65 companies, 13,072 29
Slide 31
SIMTOS2012 Exhibitors by Country Country No. of Exhibitors
Major Companies SIMTOS Partner Germany109DMG/MORISEIKI, Trumpf,
Stauff, Blum, KUKA Japan85 AMADA, AMADA Machine Tools, Mazak,
Tsugami, Komatsu, Kawasaki Taiwan70Hartford, FALCON, KAO FONG,
HIWIN, PMI China36 Beijing No. 1 Plant Shanghai Machine Tool Works
U.S.A.35Hass, Flow/OMAX, DP Technology Italy27BLM, ADIGE, FPT,
LOSMA, Marposs Switzerland24Bystronics, Agichamille, Hexagon
India21Fenwick & Ravi, UCAM, Veljan 30
Slide 32
Indian Pavilion at SIMTOS2012 Company NameBrand Pavilion
SPACE(sqm) Precision Machinekraft(P) Ltd Parts Materials &
Motion Controls 18 GEARS AND GEAR DRIVES (INDIA) PVT. LTD. Parts
Materials & Motion Controls 9 BRIGHT BURNISHING TOOLS PRIVATE
LIMITED Tools & Related equipment9 KTA SPINDLE TOOLINGS Tools
& Related equipment9 FALCON TOOLINGS Tools & Related
equipment9 DUCOM INSTRUMENTS PVT. LTD. CAD/CAM, Measuring System,
Automation & Robotics9 SONA BAND CAD/CAM, Measuring System,
Automation & Robotics9 ASKAR MICRONS PVT LTD Metal Cutting
& Die Mold Working 18 ASKAR MECHATRONICS SYSTEMS PVT LTD Metal
Cutting & Die Mold Working 9 VPI INNOVATIVE SOLUTIONS Metal
Cutting & Die Mold Working 9 SWASTHIK ENGINEERING INDUSTRIES
Metal Cutting & Die Mold Working 9 Minerva Automation Metal
Cutting & Die Mold Working 9 Electro Mech Corporation Metal
Cutting & Die Mold Working 9 Medha Automation Tools India Metal
Cutting & Die Mold Working 9 ETA Technology pvt Ltd Metal
Cutting & Die Mold Working 9 Uday Computer Aided Mfg. Pvt. Ltd.
[UCAM] Metal Cutting & Die Mold Working 36 KLADON DESIGN PVT
LTD Metal Cutting & Die Mold Working 9 Trishul Machine Tools
Pvt Ltd Metal Cutting & Die Mold Working 9 KHUSHBU ENGINEERS
Metal Cutting & Die Mold Working 18 FENWICK AND RAVI Metal
Cutting & Die Mold Working 18 21 companies, 270sqm (EEPC INDIA,
270sqm) 31
Slide 33
24 32
Slide 34
Indian Trade Mission CEO Delegation: 9 co. 13 delegates
Technology Mission Delegation : 30 co. 32 delegates Major Indian
Machine Tool Companies visit SIMTOS - Miven Machine Tools, ISGEC,
Ace Manufacturing, LMK, Rajamane Factory Visit (Hyundai-WIA),
SIMTOS Visit KOMMA-IMTMA Board Member Meeting Technology Upgrading
& Productivity Enhancement of Indian MT Industry Round OF
Meetings with Korean Manufacturers for Technology Cooperation
33
Match Making for You at SIMTOS Meeting with Korean Buyers as
well as Foreign Buyers at SIMTOS Finding potential customers among
80,000 SIMTOS membership foreign buyers Another opportunity to meet
foreign buyers invited by KOMMA : Qualified buyers invited through
Invitation Program from Thailand, Malaysia Turkey, China, Taiwan,
Indonesia, Germany etc. Let SIMTOS Be the Sales Department of Your
Company!! Apply for Participation Feb. 2013~ Two-Staged System:
On-site Meeting at the show after Pre-Meetings Review Qualification
of Exhibitors After Application Pre-Meetings : Contacting Buyers
April 2013~ On-Site Meeting at SIMTOS April 2014 Only Exhibitors
joined pre-meetings can be supported as participants 36
Slide 38
Match Making for You at SIMTOS SIMTOS organizer will identify
potential customers on our own Organize team for this project in
Feb. 13, not consigning to agency Increased the Success Rate of
Match Making Survey buyer information (business field, products)
that exhibitors want to meet Update SIMTOS Membership Information
regularly Host Pre-Meetings in May (Busan), October (Busan,
Goyang), 2013 MatchMaking4U Final Report 121 Foreign Exhibitors,
487 Korean Buyers, 510 cases No Interpret Support for Better Follow
Up Matchmaking with buyers speaking English or your countrys
language Website + SNS (facebook) + E-mail Combination Promotion
37
Slide 39
Special Advantages for India Exhibit Promotion Support to
Korean customers Cooperation with EEPC India for Indian Pavilion
Marketing Support: Delivery Service in Korea Only Foreign
Exhibitors applying for visitors registration system Provide
Delivery Service to Korean customers who visited your stand
Catalogues of products, Company brochure etc. Indian Machine Tool
Competitiveness Conference at SIMTOS Effective Exposure of New
Products : Attach the mark on the floor in front of exhibitors that
display new products Visit EEPC India Headquarters in New Delhi on
January 22 nd, 2013 Visit EEPC India Headquarters in New Delhi on
January 22 nd, 2013 Continuous Cooperation for Indian companies to
be subsidized by Continuous Cooperation for Indian companies to be
subsidized by Indian Government Indian Government 38
Slide 40
SIMTOS2014 Apply for Space Early Bird Exhibitors Have More
Opportunities of Contacting Korean/ Foreign Buyers after submitting
application. 39
Slide 41
SIMTOS is the place to see, hear and experience Korean Machine
Tool Industry as well as Manufacturing Technologies.