Hong Kong's Lee Kee says China die-casters starting automated factories in SE Asia

Lee Kee Holdings

15/05/2018 08:57

HONG KONG, May 15 (Reuters) - Lee Kee Group, a major
supplier of metals to China's die-casting industry, says that
some of its customers are developing "next generation" automated
factories in Southeast Asia, a boost for its business in the
region.
    Lee Kee, which handles aluminium, zinc, nickel, copper,
stainless steel and tin wire, set up an office in Singapore last
year to expand its business in Southeast Asia as Chinese
die-casters cut costs by shifting production abroad. 
    "(Chinese die-casters) are putting a lot of emphasis on the
automation process (in Southeast Asian factories), and upgrading
their designs," Lee Kee Group CEO Clara Chan told Reuters in an
interview on Monday.
    "That's why we have good confidence in Southeast Asia's
market development. If (a company) wants to invest in technology
and automation, they have to have a long-term view on their
business because automation costs money."
    Chinese die-casters, which churn out everything from toy
cars and fashion accessories to household hardware have been
setting up production lines in places such as Thailand, Vietnam,
Indonesia and Malaysia. In die-casting, molten metal is poured
into a mould to make a product. 
    Lee Kee Group, a subsidiary of Lee Kee Holdings  1637.HK ,
also includes a futures brokerage and a consultancy, as well as
alloying and assaying arms.
    It said earlier this month that it expected full-year
attributable profit of HK$90 million ($11.47 million), more than
double the year before, mostly due to an increase in zinc prices
and higher revenue from its alloy and assaying businesses.
 urn:newsml:reuters.com:*:nFWN1S90FD
    Chan said her customers were showing more interest in the
chemical composition of metal products, looking at different
qualities that could impact finish and strength, or that could
reduce waste in the manufacturing process.
    "We believe that the market, instead of just concentrating
on the physical performance, they are also concerned about the
chemical composition. That's how we got the idea to set up the
consultancy," Chan said.  
    "Our consultancy suggests ... speciality alloys that fit
their (a customer's) product designs and their physical
requirements ... But our core strength is alloying so if they
require speciality materials with different functions, then we
can make that."   
    The process for new product development has also become much
faster, as manufacturers are able to track trends digitally,
Chan said.  

($1 = 7.8494 Hong Kong dollars)

 (Reporting by Melanie Burton and Tom Daly in Hong Kong; Editing
by Joseph Radford)
 ((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals;
+613 9286 1421; Reuters Messaging:
melanie.burton.thomsonreuters.com@reuters.net))