A: Could you begin by explaining exactly what cutting tools are?

B: It is a blanket term covering tools fitted with a variety of cutting implements used to cut and shave various materials into a desired shape and transport the waste chips and shavings away. They are in short edged tools for processing metal materials.

A: Presumably there are a variety of ways of cutting?

B: Yes, there are six main ways: 1) by turning on a lathe, 2) by milling on a milling machine, 3) by planing on a planing or shaping machine, 4) by drilling or boring using a boring machine, 5) by gear cutting on a gear cutting machine, and 6) by thread cutting using a tap.

A: What are the main categories of tools?

B: Broadly speaking, the main types are as follows: 1) special steel tools made of steel with special properties produced by adding other elements to carbon steel (i.e. carbon tool steel, alloy tool steel and high-speed tool steel), 2) super-hard tools with a cutting edge made of sintered alloy consisting chiefly of tungsten carbide, and 3) diamond tools that have a cutting edge of diamond or CBN (cubic boron nitride).

A: How about if you were to group them by use and shape?

B: You could categorize them as follows: 1) tools with a cutting edge that are used for lathes and planing machines, 2) drills for making holes, 3) reamers use to clean out and precisely finish off holes drilled using a drill, 4) taps for turning cutting an internal screw thread into holes drilled by a drill, 5) dies for cutting a screw thread into the outer circumference of round bars, 6) milling cutters attached directly to the main shaft of a milling machine or attached to an arbor (a small shaft on which a cutting tool is mounted), 7) end mills (cylindrical tools with a cutting edge on the periphery and the base on one side used for milling level surfaces, curved surfaces and channels, and 8) throwaway tips (more recently also called interchangeable inserts because of the negative connotations of the word "throwaway" ).

A: What is the situation like with regard to domestic production, imports and exports?

B: While there are no statistics on individual types of cutting tool, the total value of domestic output in 2001 was \296.1 billion, of which exports accounted for \197.3 billion (approximately 67%). Imports were worth \32.1 billion, which was equivalent to approximately 11% of domestic production.

A: It�fs unusual for exports of a product to be so high these days, isn�ft it?

.Unit: million yen
Source: Japan Trade Monthly

While local companies in these export markets use some Japanese-made products, Japanese affiliates also make extensive use of Japanese tools in their host countries.

A: What about imports in 2001?

B: They break down as follows:

Unit: million yen

Source: Japan Trade Monthly

Since the 1960s, Japanese companies have established production operations in countries such as U.S.A., Germany, Spain, South Korea, China, Taiwan, Thailand, Singapore, Indonesia and India, both independently and through joint ventures, and some of the products made at these plants are exported to Japan. The majority, however, are sold to local Japanese affiliates. At present, the number of joint ventures is declining, and an increasing number of Japanese manufacturers are investing independently abroad.

A: What are imports and exports of throwaway tips like?

B: In 2001, imports of throwaway tips were worth \8.836 billion, equivalent to 27.5% of imports overall. The biggest source of imports was Sweden, which accounted for 26.5%, followed by China (19.3%) and Israel (15.5%). Exports were worth \22.066 billion, equivalent to 11.2% of total exports, with the biggest market being Germany, which accounted for 26.3%, followed by U.S.A. (26.2%), Taiwan (9.5%), Singapore (6.9%) and China (6.8%).

A: What are the main developments with regard to cutting tools?

B: The growing need for high-efficiency, high-precision machining is increasing the demand for greater machining efficiency and tools that last longer. Manufacturers are responding to the demand for high-speed machining by using coatings and changing the shape and quality of materials used for tools. Increases in speed have made it possible to cut materials that until were difficult to machine. The advantage of increased speed is that it improves the transportation of chips and shavings away from the cutting site, while the high-speed revolution of the main shaft inhibits vibration. The disadvantage is that the temperature of the cutting edge rises, reducing tools�f abrasion resistance.

A: What other trends are there?

B: There are appearing more environmentally friendly tools that reduce the impact on the environment either by doing away with the need for cutting oil (dry types) or by applying the oil as a mist (semi-dry types). Some tool manufacturers are pushing ahead with developing dry cutting tools by, for example, using super-fine particle super-hard alloys, changing the shape, and using coatings. At the same time, the parts being machined are having to be made more compact and precise and are incorporating elements of information technology, making it necessary for tools themselves to be that much better performance-wise.

A: What about the future?

B: Demand will no doubt continue to grow. Even now, though, the price of tools is 30% lower than in the past, and as cheap, high-quality imports appear on the market, prices are highly likely to fall further. Manufacturers will probably try to sell more to cover the fall in prices.

(Produced with the cooperation of the Japan Cemented Carbide Tool Manufacturers�f Association and the Japan Small Cutting Tools�f Association.)