It is reported that Japan's Tsugami Co., Ltd., a manufacturer of small machine tools, will begin producing affordable machine tools in China this summer. In 2011 and 2012, Jinshang expanded its Ting order by utilizing machine tools for smartphone manufacturing. However, the demand for such equipment has now declined significantly, prompting the company to seek new market opportunities.
Starting from July, Tsugami plans to repurpose its Zhejiang factory, previously used for producing smartphone manufacturing equipment, and construct a new facility covering approximately 7,000 square meters. The factory will focus on manufacturing low-cost machine tools with simplified functions, initially producing around 100 units per month. The long-term goal is to increase output to 500 units monthly within two years.
According to reports, the orders for smartphone-related machine tools from Jinshang had reached a low point around the summer of 2012. As a result, the company is now focusing on expanding its market in the automotive parts industry, which offers a larger and more stable demand. The low-cost machine tools produced in Zhejiang are lathes designed for cutting metal blocks. By leveraging mass production of components, the company aims to reduce costs and compete effectively with Asian manufacturers, whose products are typically about half the price of Japanese counterparts.
In response to the sharp drop in smartphone-related orders, several Japanese machine tool companies are shifting their focus. For example, FANUC, one of Japan’s leading manufacturers, began developing small machine tools for automotive parts processing in March this year, reflecting the broader industry trend toward diversification and adaptation.
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