It is reported that Japan's Tsugami Co., Ltd., a manufacturer of small machine tools, will begin producing low-cost machine tools in China this summer. In 2011 and 2012, Jinshang significantly expanded its Ting order by utilizing machine tools for smartphone production. However, the demand for such equipment has now declined, prompting the company to explore new markets and applications.
Starting from July, Tsugami plans to utilize its Zhejiang factory, which previously produced equipment for smartphone manufacturing, and build a new facility covering approximately 7,000 square meters. The factory will focus on producing low-cost machine tools with simplified functions, initially aiming for a monthly output of around 100 units. The long-term goal is to increase production to 500 units per month within two years.
According to available information, orders for smartphone manufacturing equipment from Jinshang reached a peak around the summer of 2012, but have since entered a period of decline. As a result, the company is now focusing on expanding into the automotive parts machining market, which offers a larger scale and more stable demand. The low-cost machine tool being developed in the Zhejiang factory is a metal-cutting lathe designed to reduce costs through mass production of components. This product is expected to compete effectively with Asian manufacturers, offering prices that are roughly half of traditional Japanese machine tools.
In response to the sharp drop in smartphone-related orders, other Japanese machine tool companies are also adjusting their strategies. For example, FANUC, one of Japan’s leading manufacturers, has begun developing small machine tools for automotive part processing this year as a way to offset declining smartphone production orders. This shift reflects a broader trend among Japanese firms to diversify their product lines and adapt to changing market conditions.
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