In 2017, total castings output wrapped up with a "moderate recovery," and in 2018, a slight growth is still expected.

Total castings output is expected to see a slight increase in 2017.

　　Starting from last year, a significant number of scattered, chaotic, and poorly managed casting enterprises have been shut down due to various factors, including environmental concerns. Since June of this year, nationwide environmental inspections have imposed even stricter regulatory requirements on many casting companies. As the heating season approaches, numerous regions have mandated staggered production schedules for casting firms, which has greatly alleviated the issue of overcapacity. In particular, casting businesses in areas not subject to these staggered-production rules have seen a substantial surge in orders. It is anticipated that China's total castings output in 2017 will see a slight increase compared to the 47.2 million tons produced in 2016.

　　Looking at the situation across various sub-sectors, automotive castings account for nearly one-third of China's total casting output. In 2017, the growth of China's automotive industry continued to be the primary driver behind the expansion of the casting sector, particularly fueled by the explosive growth in heavy-duty trucks. Meanwhile, the growing trend toward lightweighting has also laid a solid foundation for sustained robust growth among non-ferrous casting enterprises—such as those specializing in aluminum and magnesium alloys—that serve the automotive industry.

　　In addition, various products in the construction machinery industry, such as excavators and loaders, have shown a significant recovery-driven growth trend, leading to a substantial increase in the output of castings used in construction machinery. Meanwhile, demand for castings used in machine tools has seen a slight uptick. Centrifugal cast iron pipes currently account for more than 16% of China's total casting production; with rapid urban development underway, centrifugal cast iron pipe output is expected to grow by around 10% in 2017. Conversely, castings for agricultural machinery and marine applications have experienced a modest decline.

　　The industry's overall competitiveness continues to improve.

　　The equipment manufacturing industry is the main battlefield for national industrial restructuring, and the integration of "Internet Plus" with casting will accelerate China's casting industry as it transitions from being large-scale to strong. Over the past year, to encourage the casting sector to prioritize the commercialization of scientific and technological achievements, the China Foundry Association has undertaken extensive efforts in areas such as policy research, consulting services, technology and quality assurance, international exchanges, digital and intelligent development, formulation of group standards, and talent cultivation. These initiatives aim to expedite structural adjustments, foster transformation and upgrading, drive innovation-led growth, promote intelligent upgrades within enterprises, and ultimately enhance the overall market competitiveness of casting industry players.

　　First, we aligned with government departments to implement relevant industry policies. By actively engaging with government agencies, we organized the revision of the "Guidance Catalog for Independent Innovation in Major Technical Equipment" and the "Special Implementation Plan for Major Technical Equipment," as well as the solicitation of investment directions in the casting sector under the "Made in China 2025" initiative—specifically for 2018 within the machinery industry. Additionally, we completed research on industry chain layout and successfully gathered, analyzed, and submitted materials related to the casting industry, including those for the selection process of the 19th China Patent Award. We also proactively launched evaluation activities for cutting-edge technologies, new materials, and innovative equipment within the industry, aiming to encourage enterprises to develop and tackle challenges associated with new products. Initiatives such as the Materials Golden Summit Award, the Equipment Innovation Award, the Four New Technologies Awards, the Gold Award for High-Quality Castings, and the New Product & Technology Appraisal have garnered significant attention across the industry, effectively boosting companies' enthusiasm for research and development.

　　Second, we must accelerate the deployment of intelligent manufacturing to drive industry transformation and upgrading. Compared with industries such as automotive and machine tools, the foundry sector still lags significantly in terms of overall automation and intelligence levels, while its IT infrastructure remains relatively weak—creating ample room for the industry to evolve and advance. In recent years, the National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT) have supported several specialized intelligent manufacturing projects within the foundry sector. These initiatives not only provide model examples for the industry’s shift toward smart manufacturing but also inject fresh momentum into its growth. Meanwhile, driven by a combination of factors—including environmental regulations, safety concerns, and rising labor costs—many foundries are speeding up their efforts to replace human workers with machines. As a result, enterprises that meet the necessary conditions are increasingly enthusiastic about building digital workshops or smart factories.

　　In September 2017, the China Foundry Association, together with Ningxia Shared Group’s National Intelligent Foundry Industry Innovation Center, took the lead in establishing the China Intelligent Foundry Industry Alliance. Adhering to the development philosophy of "Professionalism, Collaboration, Sharing, and Win-Win," the alliance actively explores intelligent solutions tailored to various sub-sectors of the casting industry by coordinating cutting-edge casting technologies and related industry resources. It aims to build a comprehensive industrial and innovation chain for China’s intelligent casting technology, fostering resource sharing and mutual benefits among its members. Additionally, the alliance is committed to creating an open, collaborative, and integrated online-and-offline industry service platform, ultimately shaping an innovative industrial ecosystem that combines "Internet + Innovation & Entrepreneurship + Green Intelligent Casting," thereby enhancing the overall competitiveness of China’s casting sector.

　　Third, industry advancement requires standards to lead the way. As of now, the China Foundry Association has released a total of 40 group standards that meet market demands. Among these, eight standards were selected for inclusion in the Ministry of Industry and Information Technology’s 2017 Catalogue of 100 Model Group Standards for Application. For instance, the standard "High-Purity Pig Iron for Casting" has significantly altered China’s heavy reliance on imported high-purity pig iron, playing an indispensable role in supporting the country’s independent production of high-end cast iron components essential for advanced technological equipment. Notably, China First Heavy Industries has utilized products compliant with this standard to manufacture nuclear power pressure vessels, while Inner Mongolia First Machinery has produced key castings for its 99A series main battle tanks.

　　In addition, the China Foundry Association (CFA) and China Certification & Accreditation Association (CCAA) jointly developed and released the group standard titled "Certification Requirements for Quality Management Systems in Foundry Enterprises," which serves as a concrete implementation of the State Administration for Market Regulation's "Implementation Opinions on the Upgraded Version of Quality Management System Certification." This initiative has been widely praised by enterprises. In light of this success, the SAMR has tasked CCAA and CFA with drafting the industry standard "Quality Management System Requirements for Foundry Enterprises in the Machinery Sector," marking the imminent transition of the group standard into an official industry benchmark.

　　Fourth, the framework of the international exchange system has become even clearer. The China Foundry Association has established a robust international exchange network, centered around initiatives such as the "BRICS Foundry Federation," the "Working Committee on the Foundry Industry under the Belt and Road Business Associations Alliance," the "Asia Foundry Forum," and the "Cross-Strait and Hong Kong Foundry Cooperation Forum." Complemented by bilateral and multilateral exchanges between China and countries like the U.S., Germany, Japan, South Korea, as well as among China-ASEAN and China-EU partnerships, this comprehensive system is now fully operational. Additionally, several key Belt and Road-themed events and two ongoing research projects have provided crucial industry support for relevant national departments in shaping their industrial policies. As a result, a solid foundation has been laid for the internationalization of China's foundry industry.

　　Implement multiple measures to promote industry transformation and upgrading.

　　Nevertheless, compared to industrially advanced countries, China's casting industry remains large but not strong. Significant gaps persist in areas such as industrial structure, quality and efficiency, independent innovation capability, process equipment, energy and resource utilization efficiency, and environmental protection and emissions. As a result, the task of transformation and upgrading is both urgent and challenging: First, structural overcapacity is particularly pronounced, with a considerable amount of outdated production capacity still in place, and the consistency and stability of key casting quality remain poor. Second, the industry’s ability for independent innovation remains weak, leaving some high-end, critical castings unable to meet the growing demands of domestic machinery manufacturers and major technological equipment developments. Third, energy and resource consumption—as well as pollutant emissions—remain alarmingly high, with the persistent pattern of high input, high consumption, high emissions, low output, and low efficiency still being a major concern. These issues have largely hindered China’s casting industry from transitioning from "big" to "strong," making it imperative to address them swiftly.

　　To provide crucial support for the innovative development of the high-end equipment manufacturing industry, the casting industry must proactively address challenges, adopt multiple measures to seize growth opportunities, and accelerate the advancement of supply-side structural reforms, thereby driving the industry’s transformation, upgrading, quality enhancement, and efficiency gains.

　　First, accelerate the transformation and upgrading of the casting industry through laws, regulations, and industrial policies. Currently, the development levels within the casting industry vary significantly—while a few leading enterprises boast advanced process equipment and comprehensive environmental protection systems, many others still rely on outdated technologies, obsolete machinery, and inadequate pollution-control measures. To drive this transformation and upgrade, it is crucial to firmly implement national laws, regulations, and relevant industrial policies, promoting standardized management across the sector. By phasing out some companies, upgrading others, and consolidating the rest, we can further reduce the overall number of enterprises, scale up remaining businesses, and enhance industry concentration.

　　Second, foster innovative development, facilitate the transformation of old and new growth drivers, and drive industry-wide improvements in quality and efficiency. Currently, casting enterprises exhibit uneven levels of development, with traditional manual molding coexisting alongside mechanized and automated equipment. Taking advantage of rising environmental regulations and labor costs, we must encourage companies to accelerate their adoption of "machine substitution"—replacing human workers with advanced automation technologies—thereby further enhancing equipment automation, boosting productivity, and phasing out outdated processes and machinery. At the same time, we need to deepen the integration of industrialization and信息化 (two-way integration) within the casting industry, speeding up the widespread application of cutting-edge technologies such as computer-aided engineering, manufacturing execution systems (MES), industrial robots, additive manufacturing, intelligent logistics management, and CAE simulation tools in casting enterprises. This will enable the strategic replacement of humans by robots in critical roles, optimize key processes throughout the casting production cycle through smart technologies, and help leading enterprises build digitally and intelligently equipped casting facilities. Importantly, we must vigorously promote the implementation of proven, mature solutions from other industries specifically tailored for the unique needs of the casting sector.

　　Casting is one of the earliest industries to adopt additive manufacturing technologies. Different 3D printing techniques have distinct application scopes, and when combined with traditional casting processes, they can open up broader possibilities in industrial applications—and even pave the way for innovative casting production models in the realm of complex products.

　　Third, we must promote green development in the casting industry. Sustainable growth in the casting sector requires embracing a green development path. First and foremost, casting enterprises should proactively enhance their comprehensive environmental management in line with national environmental protection and safety regulations. At the same time, it’s crucial to implement the "Industrial Green Development Plan (2016-2020)," accelerating the adoption of cutting-edge, energy-efficient, and environmentally friendly technologies, processes, and equipment in the casting field. Additionally, we need to expedite the establishment of model green casting enterprises, encouraging casting companies to integrate green casting principles into every stage of the casting production process—paving the way for low-carbon, circular, and resource-efficient green casting practices.

　　The total casting output is expected to see a slight increase in 2018.

　　During the 13th Five-Year Plan period, energy conservation, emission reduction, and green manufacturing have become the dominant themes driving China’s development. Industries across the board are actively aligning their strategies around these key areas, with environmental governance efforts reaching unprecedented levels. As a foundational industry for industrial growth, casting also faces significant challenges in terms of energy consumption and environmental pollution—issues that are now firmly prioritized by national policies. Leveraging its unique characteristics, the casting industry must pursue energy-saving and emission-reduction goals on a macro level and across the entire sector. To achieve this, the following measures should be implemented:

　　First, the establishment of pollutant emission and cleaner production standards is essential. Currently, the casting industry lacks specific, mandatory national standards for pollution emissions. With the exception of a few regions that follow local or industry-specific standards, only two older but still legally binding national standards—*Comprehensive Emission Standard for Air Pollutants (GB16297-1996)* and *Emission Standard for Air Pollutants from Industrial Furnaces and Kilns (GB9078-1996)*—currently hold legal authority over casting enterprises nationwide. However, the emission limits set by these two standards no longer meet the current needs of air pollution control efforts. Moreover, several industries have already introduced their own specialized standards to replace these outdated ones. Therefore, developing a national standard specifically tailored to the casting industry’s air pollution emissions has become particularly crucial. In October of this year, the China Foundry Association officially released the group standard *Emission Limits for Air Pollutants in the Casting Industry (T/CFA030802-2—2017)*, which is expected to serve as an important foundation for the future development of a national standard.

　　Second, the development of guiding technical documents for air pollution prevention and control. In addition to specifying essential emission standards, the air pollution control efforts in the casting industry also require guidance documents tailored to the use of environmentally friendly technology equipment. Currently, several industries in China have already released "Best Available Technology Guidelines" for pollution prevention, clearly outlining the specific types of pollution-control technologies applicable within each industry, along with their effectiveness and economic feasibility. The Ministry of Environmental Protection has already planned to progressively formulate more comprehensive Best Available Technology Guidelines tailored to various sectors.

　　Third, strictly enforce the pollutant discharge permitting and total volume control systems. The pollutant discharge permitting and total volume control systems are among China’s fundamental environmental protection frameworks. Enterprises, institutions, and other producers operating under discharge permit management must comply with the pollutant discharge requirements specified in their permits; those without valid discharge permits are prohibited from discharging pollutants. According to the State Council’s “Implementation Plan for the Pollutant Discharge Permit System” and the Ministry of Environmental Protection’s “Catalogue of Classified Management for Fixed Pollution Source Discharge Permits (2017 Edition),” all enterprises in the casting industry are required to obtain discharge permits, with key management applied to those producing over 100,000 tons annually. Additionally, the plan stipulates that the implementation of discharge permit management in the casting sector will be completed by 2020. Currently, the “Technical Specification for Application and Issuance of Discharge Permits” for the casting industry has been included in the Ministry of Environmental Protection’s 2019 work plan, which will significantly accelerate the industry’s transformation and upgrading efforts.

　　Fourth, accelerate the restructuring of the industrial sector and phase out outdated production capacities. Vigorously promote the implementation of an access system for the casting industry, shutting down small-scale casting enterprises that fail to meet the "Access Conditions for the Casting Industry"—specifically those that waste resources, cause severe pollution, consume excessive energy, or lack safe production conditions. In particular, the effectiveness of controlling atmospheric pollutants will be established as a mandatory evaluation criterion for market entry, with a strict "one-vote veto" policy in place. Additionally, we will promptly adjust China's casting industry structure to achieve large-scale, efficient production. Through these industrial reforms, casting enterprises can move toward specialization and greater scale—this is not only essential for their healthy, orderly, and sustainable development but also the inevitable path forward.

　　Looking ahead, in 2018, the casting industry will continue to face pressures related to environmental protection and safety. Commissioned by the Ministry of Environmental Protection, the "Emission Standards for Air Pollutants in the Foundry Industry," compiled under the organization of the China Foundry Association, will be released and implemented next year, providing a solid foundation for companies to strengthen their environmental management efforts. As local governments intensify regulatory oversight of the casting sector, casting enterprises will increasingly diverge into two distinct groups: some with inadequate environmental facilities and substandard emissions will be forced to exit the market, while others that have already adopted environmentally sound practices will be encouraged to further enhance their operations. Meanwhile, with fewer players in the industry and the implementation of staggered production schedules aimed at reducing pollution, the domestic and international markets are expected to recover more robustly than this year. Consequently, well-equipped Chinese casting firms—those capable of maintaining normal production levels—are likely to see a steady rise in order volumes, driving a modest overall increase in total castings produced.