parijatha biec at imtex2013 bangalore, india korea machine tool manufacturers’ association january...

Parijatha BIEC at IMTEX2013 Bangalore, India Korea Machine Tool Manufacturers Association January 26 th, 2013

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

About KOMMA Korea Machine Tool Manufacturers Association Affiliated organization of Korean Government Members account for 80% of total machine tool production in Korea 2

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

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

China38,370 Japan7,621 Germany6,956 USA6,612 Korea5,131 Italy2,963 India2,352 59,875 * Source: Gardeners Publication Inc.(2012) China13,070 USA4,325 Germany2,922 India1,944 Korea1,250 Mexico1,269 Brazil1,224 92,745 37,830 Production: US$5.6 bill.(5th) Consumption: US$5.1 bill. (5th) Exports: US$2.3 bill.(7th), Imports: US$1.3 bill. (5th) Production: US$5.6 bill.(5th) Consumption: US$5.1 bill. (5th) Exports: US$2.3 bill.(7th), Imports: US$1.3 bill. (5th) (Value: US $Million) World Standing of Korea MT industry in 2011 85,161 China27,680 Japan18,353 Germany13,395 Italy6,233 Korea5,641 Taiwan5,000 Switz.4,161 India576 45,484 Japan7,832 Germany6,623 Italy3,298 Taiwan2,995 Switz.1,821 China1,800 Korea1,678 India28 5

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

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

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

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

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

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

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

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)

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

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

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

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

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

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

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

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

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

Entering Global Machine Tool Markets (Values in Millions Of US Dollars) Current Status of Indian MT 23

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

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

SIMTOS HISTORY (Note: The number of visitors since 2002 is endorsed by AKEI(Association of Korea Exhibition Industry) 26

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

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

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

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

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

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

April 9 th ~ 13 th, 2014 [5 days] 09:30~18:00 KINTEX 1, 2 ( 102,431 ) Title Date Venue Exhibitors Visitors SIMTOS2014 Fact Sheet Harmony of Metal-Work Innovation & Tradition Slogan Machine Tools (Metal Cutting machines), Tools, Measuring Instruments, Parts, CAD/CAM, Laser/Water Jet Cutting Machines Welding/Cutting Machines, Metal Forming Machines (Press/Bending etc.) Sawing Machines, Robotics, Automation, Materials, Complex Corporate Cluster, etc. Core Strategic Core Items Strategic Items Exhibits 34

SIMTOS2014 Venue 102,431

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

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

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

SIMTOS2014 Apply for Space Early Bird Exhibitors Have More Opportunities of Contacting Korean/ Foreign Buyers after submitting application. 39

SIMTOS is the place to see, hear and experience Korean Machine Tool Industry as well as Manufacturing Technologies.

parijatha biec at imtex2013 bangalore, india korea machine tool manufacturers’ association january...

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