7 Tips When Setting up Die Casting in China

Die casting is one of the most-popular manufacturing practices in the world. It is an easy-to-manage process that creates premium-quality products in a quick and budget-friendly manner.

Of the many nations that have a credible reputation in die casting, China ranks at the top. In fact, in 2015, China supplied 45% of the world’s diecasting needs – 70% of which was supplied to the automobile industry. This number continues to grow at a significant pace every year. Today, the Chinese die casting industry is one of the fastest-growing manufacturing segments in the world, offering highly-competitive services to clients all over the globe.

Many companies today are seeing the advantages of sourcing from China-based manufacturing companies. According to studies, the die casting industry will see a CAGR of 6.13% between 2019 and 2025. The die casting industry has become the largest and fastest growing market is Asia-Pacific, with China leading the way.

So, if you are planning to set up a die casting company, China would be an ideal location for your new business. In this article, we provide the step-by-step process of how you can start a die casting company in China.

Let’s get started.

1.     Select a location to build/rent your production center

When the time comes to set-up a die casting company in China, you’ll need to ensure that you have selected the right location. There are specific, mandated special economic zones and manufacturing spaces where resident companies are not only provided access to special tax benefits,but also access to technology and marketing aid by the Government. In addition you’ll be able to keep an eye on your competitors, thereby gaining a better awareness of where you stand in the die casting market.

Some of the best places in China where you can build your new die casting company are:

ShanghaiGuangzhouTianjinNingboShenzhenXiamen

All of these cities are considered to be global hubs of economy, finance and business– making them world-renowned manufacturing sites. Multiple suppliers, 3PL companies and financial institutions have branches here, presenting you with opportunities to access all the facilities and materials you need. These cities have the added benefit of being port-side cities and have excellent connectivity with other regions of China as well as the overseas markets.

2.     Create a business plan

One of the most important things you need to do to set-up your new die casting company is to develop a business plan. This business plan is essential to:

Get approval for your business registration from the Ministry of CommerceApply for financeGet reputable suppliers to give you good dealsFind top executive talent who will be instrumental to your successPlan for the growth of your company

The business plan should contain comprehensive information about your business. The sections you need to include are:

Executive summary outlining the progress you expect for your business.Company background – with details of your qualifications and why you wish to start a die casting company in ChinaMarket analysis report, competitive analysis report and feasibility study report for your businessList of Directors, executive employees and other staff – their contact details and role in the company. This may also require details regarding capital they may be investing plus their personal residence detailsStructure of the company and divisions you plan to have Manufacturing (i.e., here, die casting processes) you plan to supportList of industries/products you plan to support/manufacturePromotional techniques and channels you plan to employSources of funding, rates you will be paying and company ownership plans for the future (i.e., remain private or go public)Financial reports for the next five years, with projections for P&L account and Balance SheetAny additional information you need to furnish (for example, intellectual properties for the die casting process that you have)It’s important to get your business plan reviewed by a local lawyer that can determine that you have covered all the bases