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Strong demand for heat treatment related equipment
In the heat treatment industry, which plays a crucial role in the manufacturing sector, current market demands and trends are evolving rapidly. At a recent national heat treatment industry management meeting, Professor Fan Dongli, a renowned expert in metal heat treatment and former vice chairman of the China Heat Treatment Industry Association, shared insights on the state of the industry. He emphasized that as China’s manufacturing sector continues to grow, so does the demand for heat treatment services, with three key areas standing out.
First, heat treatment processing companies are expanding significantly. With China's low labor costs and affordable production environment, foreign investment in manufacturing is not only concentrated in coastal regions but also gradually moving inland. Beyond the automotive sector, many other industries consist of small and medium-sized enterprises (SMEs) that rely on collaborative processing. This has led to the emergence of more private heat treatment firms in cities where SMEs are prevalent. The trend of foreign firms building their own heat treatment facilities reflects this shift. Additionally, the high demand for light industrial molds, basic components, and auto and motorcycle parts has further driven growth in the heat treatment processing industry. However, there is currently an overcapacity issue, with equipment utilization rates averaging only 30%. Many state-owned enterprises operate on single shifts or even less, and after internal upgrades, they are likely to increase external collaboration, intensifying competition in the market. This could lead to price wars, potentially affecting product quality and company reputations. As such, Professor Fan advises new entrants to proceed with caution.
Second, there is a strong demand for technical upgrades and equipment modernization. In sectors like automobiles, aerospace, defense, and mold-making, technological advancements are pushing heat treatment processes toward higher standards. Enterprises are no longer satisfied with outdated methods and are investing in advanced, reliable, and automated systems. Private companies, in particular, are focusing on efficient capital allocation, prioritizing high-tech, high-quality equipment, even if it comes at a higher cost. This trend is creating new opportunities for equipment manufacturers. Conventional furnaces like box, well, and salt bath types are being replaced by more advanced, energy-efficient, and environmentally friendly alternatives. For example, multi-furnace systems for vehicles and parts, vacuum furnaces, and high-pressure gas quenching units are seeing increased demand. By 2010, it is expected that over 500 multi-purpose furnaces, 200 mesh belt furnaces, 50 push rod and roller bar furnaces, and 20 rotary hearth furnaces will be required annually. Vacuum heat treatment furnaces, especially those capable of high-pressure gas quenching, are expected to see demand exceeding 300 units per year.
Third, the market for heat treatment process materials is growing. Quenching agents,渗碳 agents (carbon penetration agents), anti-carburization agents, atmosphere gases, and salt baths are essential for ensuring the quality of treated components. Although polymer media are often promoted as oil replacements, they still cannot fully replace oil in certain applications. Currently, about 50% of quenching uses water and salt-based solutions, 40% uses oil, and the rest includes nitrate baths, polymer solutions, and others. Oil remains a major component, with 90% of quench oils being N22 and N32 mechanical lubricants, while commercial quench oils account for less than 10%. Annual demand for quenching oil in China is around 30,000 tons, with commercial quench oil usage at just 3,000 tons.
Despite the promising outlook for China's heat treatment industry, challenges remain. These include uneven development among companies, low specialization levels, high energy consumption, outdated equipment, weak environmental awareness, and limited R&D capabilities. Additionally, the quality of industrial materials and workforce skills need improvement. While the future looks bright, these issues must be addressed promptly to support continued growth in the manufacturing and national economy.
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