Taiwan Fastener Industry: Faraway, So Close

November 29

00:00 2012

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FEATURE

What issues do Taiwan fastener manufacturers face?
During FIN interviews, four manufacturers in Kaohsiung mentioned issues that U.S. companies face too: Quality, currency, employee training and labor costs, competing lower-cost nations, trust and the global economy.

Tong Hwei’s Tsai: “There is no SOP for people.”
“I was born in a fastener factory.”

It may sound like the opening line of a Charles Dickens novel, but for Chu-Chien Tsai it’s practically true. Technically, he was born in a hospital, but he grew up in a small fastener factory where his family lived during the early years of Tong Hwei Enterprises, the company his father founded in 1978 with a single machine in Gang Shan, Kaohsiung, Taiwan.

You could say his career in the fastener industry was inevitable. As a child … (FIN subscribers click here for more. Nonsubscribers can purchase it on Article Store.)

Shih Hsang’s Ywa Industrial: “China is getting better.”
Established in 1973, Shih Hsang Ywa Industrial Co., LTD. has weathered many business cycles over the years.

On average the Taiwan fastener market grows 3% to 5% annually.

Shih Hsang president Sherman Hong fondly recalls the heyday of the 1990s.

“During the Clinton years, growth was huge,” Hong told FIN.

When the global recession struck in 2008 … (FIN subscribers click here for more. Nonsubscribers can purchase it on Article Store.)

Ho Hong Works: Taiwan Has “Huge Advantage” Over China
Founded in 1973, Ho Hong has capacity of 20,000 MT/year and employs about 85 workers at its 185,000 sq ft facility in Kaohsiung. Major products include Grades 2, 5, & 8 OEM specials, with a range of 1/4″-1″ diameter to 12″ in length.

The company says it exports on average 60-65% of its products to Japan, 35-40% to the U.S. and 3% to “other”.

In recent months business has been down: 15% in July and 20% in August, according to company president Davis W.W. Leu.

But overall prospects are favorable, Davis told FIN. Ho Hong’s major export destination, Japan, enjoys a relatively stable economy, and Ho Hong’s workforce is stable thanks to “good overall compensation.”

Davis takes a different view of competition from China than some of his counterparts … (FIN subscribers click here for more. Nonsubscribers can purchase it on Article Store.)

Chu Hua Industrial: Taiwan Industry Sees ‘Dramatic’ Change
Taiwan’s fastener industry has changed dramatically since 2000, according to Chu Hua Industrial Co. sales manager Gordon Lin. Taiwan has adopted Western standards and matched steel quality, enabling it to keep up with the demands of its 21st century customers in the U.S., Japan and Australia.

This dramatic change has given Chu Hua an ongoing focus on quality.

Founded in 1974, the Kaohsiung-based fastener manufacturer is ISO 9002 and QX9000 certified by the A2LA.

In the early years … (FIN subscribers click here for more. Nonsubscribers can purchase it on Article Store.)

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