Needs and constraints faced by the project

Rapid growth of industry and alarming environ-mental degradation

As the rapid growth of industries is providing humans with jobs and companies with trade opportunities, it can be expected, that industrialisation will keep ongoing. Although productivity could be improved reasonable during the last decade and a more efficient use of resources per production unit could be achieved, the Chinese industry is far away from beeing sustainable. In fact the degradation of environment is increasing at an alarming rate in China - in the long run forecast even with severe impacts to the global environmental conditions.

This issue attracting more and more attention of the foundry industry as well. Chinese foundry men are already experiencing some pressure for pollution control. At present, the negative measure is to move the foundries from inside the city to rural areas, but this cannot last for long. In the next decade, environment protection laws will surely become more and more stringent and foundries will be compelled to clean their effluents and reduce their impacts, no matter what cost they have to bear. Environment protection business can be expected to thrive.

Concrete measures on company level are still missing

Although the Chinese decision makers have gained an increased awareness of these problems, they are jeopardised between good will to protect the environment and to stimulate economic growth at the same time. In particular concrete measures to reduce environmental impacts resulting from enhanced industrial activities have still to be found and implemented - at least there, where industrial production takes place, which is the company level.

Big potential, but lack of know-how, to be provided by EU expertise

The main constraint for a sustainable reorganisation of industrial activities in China is the lack of information how to do on company level. The great potential of the Chinese market in this respect can very often not materialise in real turnovers because of insufficient awareness about the benefits of environmental sound solutions. Complementary there exists a large number of adequate solutions. These solutions can be provided by European expert organisations. The technologies and methods being considered range from cleaner technologies, cleaner production, ecoefficient services, ecological procurement, renewable energies, environmentally sound technologies, etc.

Joint ventures and technology transfer

In spite of China's high casting output, China's casting quality on the whole, is backward in comparison with the western world. This is evidenced in the automotive engine and machine tool bed castings, the service lives of which average 50-70% of the western manufacture. To overcome this weakness, the open policy of China encourages the import of overseas technology and capital. The fields of cooperation include all aspects of foundry production, such as casting processes, quality control, management, foundry equipment and foundry materials. The form of cooperation can be very flexible, for example, purchasing or processing contract, agency, know-how transfer, patent licensing, up to a comprehensive joint venture. The transfer of know how is a mayor issue, especially knowledge about environment and environmental protection and regeneration.