More than 800 businesses will take part in Asia's largest die and mould exhibition which opens in Shanghai tomorrow.

Companies from 16 countries and regions, including the United States, Germany, Japan, Italy, South Korea and Switzerland will be taking part in the five-day event at the Shanghai New International Expo Center.

This year's event, approved by the Union of International Fairs, has an added significance as it is the first time German, Japanese and South Korea mould firms will be attending, all of them eager to show off their latest high-tech products.

"We need sophisticated foreign technology to update the industry, since China lags far behind foreign counterparts in this regard," said Cao Yanan, vice-president of the China Die and Mould Industry Association.

China became the world's third-largest manufacturer of moulds last year, making items worth 45 billion yuan (US$5.5 billion). Its exports reached US$337 million.

"But low-tech moulds exceed demand with no profits reaped, while high-tech moulds are in short supply, with a heavy reliance on imports," said Cao.

China imported US$1.37 billion worth of moulds last year, excluding those produced on imported production lines. China's major mould manufacturing bases are currently located in South China and East China, taking up a two-thirds share of the country's total output value and sales.

"Mould production is expected to grow by an annual average of 20 percent over the next few years," he said.

Cao said that the nation should develop its quality moulded steel manufacturing capacity in order to reduce reliance on imports.

China imported 90,000 tons of specially moulded steel from Sweden, Japan, Germany, Austria and South Korea last year, about one-sixth of China's annual consumption of moulded steel.

(China Daily May 11, 2004)