MoldMaking Technology

SEP 2017

Advertising in MoldMaking Technology offers

Issue link: https://mmt.epubxp.com/i/863778

Contents of this Issue

Navigation

Page 29 of 75

Global Competition 28 MoldMaking Technology —— SEPTEMBER 2017 Molds and products. U.S.-made molds, tools and dies may be shipped to China, they may be developed and produced under design direction by the U.S., or they are fully designed and made in China. However, if they end up at a manufacturing site in China, you may never get them back. Production assists like molds, tools and dies are typically thought of as part of the Chinese manufacturing infrastructure. Once in place on the production line, these things now "belong" to the manufacturer. At that point, the Chinese simply believe they own it. If a company continues to produce the same product with no new molds in China, this may not be an issue. But if a company decides to reshore its production, the molds, tools and equipment will very likely stay behind. Even with an OEM agreement and strong contract language, it may be impos- sible to retrieve production molds and tools. An attorney with experience in Chinese contracts will explain that ownership of molds, tools and other equip- ment must specifically be called out with serial numbers in the initial contract, and should be written in Chinese language. All parties must sign and confirm the contract. Even then, it will likely be difficult to enforce. Some companies have tried to require a deposit before equipment is shipped to China for production, but this approach is rarely successful. Contracts in China are viewed and interpreted differently from the Western world. In China, a contract is just a baseline or starting point for the rela- tionship between two parties. In the Western world, a contract is viewed as the memorialization of all the negotiated terms. Those in the U.S. may believe they have protected their rights to equipment ownership, while those in China think the contractual language is just the start- ing point for further discussion once the equipment is being used. In addition to having developed or deliv- ered molds to a Chinese OEM, a company has also taught the manufacturer how to make its product and where the raw materials are sourced. A Chinese manufacturer can (and most likely will) use their customer's molds and continue to produce the exact same product under a different label, long after the U.S. company has exited China. Chinese manufacturers will continue to produce former product styles and aging products and sell them to developing countries under a different brand or label. Markets for aging products and previous models in other developing countries may continue to be strong for some time. One strategy that we regularly encourage is for companies to make only old product models in China, leaving all new model production in the United States or in Western Europe where patent and copyright laws are the strongest. Another effective approach is to source subassemblies or component parts from differ- ent regions so that no contract manufacturer has a complete blueprint of how to manufacture the finished product. People, permits and supply chain. Molds and processes are not the only "got- chas" when leaving a foreign location. Companies must also consider employment contracts and must obtain the proper permits from the Chinese government to shut down a factory. The rebuilding of a company's supplier base can also be a lengthy process in the Robot Dynamic 150L With the EROWA Robot Dynamic 150L you start with a system that suits your current needs. If the requirements to your production capacity increase, the system can be expanded modularly at any time. The ERD 150L has a transfer weight of up to 330 lbs and the selective magazine racks can be con gured for a mix of pallets, electrode holders and xtures. www.erowa.com Economical reshoring means that all costs of leaving a foreign location are considered, including leaving molds and equipment behind, paying out employment contracts, reestablishing the supply base and finding skilled workers in the United States.

Articles in this issue

Links on this page

Archives of this issue

view archives of MoldMaking Technology - SEP 2017