Diamond Tools to Replace Traditional Tools with Great Space

The worldwide industrial relocation of diamond tools has been basically completed, and the domestic industry concentration degree remains low. At present, China and South Korea have become the world's diamond tools production base. European and American developed countries still have a small amount of high capacity. In America, for example, Chinese products accounts for 40%-50% of its imports, plus South Korea products, accounting about 70%-80% in total. Due to the barriers to entry of diamond tools is not high, the domestic concentration is very low.

In stone production base there will be a large number of small tools processing enterprises, tending to do only a few types of products, whose profitability has larger gap compared with large-scale enterprises. With the upgrade of diamond tools category and the return of the gross profit margin, they have a tendency to be integrated.

The alternative space of diamond tools is huge: diamond tools belong to emerging industries, which still have a lot space in the replacement of traditional tools. For example, in ceramic industry, coarse grinding ceramics production links start using diamond grinding tool starting from the year before. And a group of ceramic production lines cost 2 million RMB of diamond tools on average. Currently, about 2000 lines across the country, have not been upgraded. In the fine grinding, the traditional soft grinding tools are still in use due to the technical problems like scratches needed to be solved. If they are all replaced, the output value of diamond tools used in the ceramic production will be doubled.

In the past two years, diamond tools have began to be used in the grinding of wall and ground, which is comparatively mature abroad, but just start-ups at home. On average, the market of diamond tools still has enormous room for growth with the constant improvement of the existing field permeability and newly opened new applications.