Taiwan's Mechanical Parts Makers Recovering Well After Downturn

One supplier has been working overtime to fill flooding orders

After being shaken by the global recession in 2009, Taiwan's manufacturers of machinery parts and accessories, mainly medium and small enterprises, have seen their fates reversed, with sales growing substantially in the first three quarters of 2010 due to steady recovery in the global economy. Figures from the Taiwan Association of Machinery Industry (TAMI) show that Taiwan exported US$552 million of machine-tool parts and components, a major output in this line, in the first three quarters of 2010, surging 101.2% from US$274 million of a year earlier.

Development of this trade in Taiwan can be traced back some five decades, starting with the gradual industrialization of the local economy and then increasingly extensive mechanization of many industries on the island, culminating perhaps in the building of the ITC sector that is still the heart of the Taiwanese economy.

Unlike in the earlier days, many manufacturers in this line successfully rely on export to industrialized nations as revenue generator, made possible by rolling out high-tier mechanical components and parts made of high-quality materials imported from advanced nations.

Some say that a core strength of Taiwan's manufacturers of mechanical parts is fast lead time, achieved by keeping large inventories that minimize turnaround when filling even relatively specialized orders. Another competitive edge is the local makers' willingness to take on custom orders, which inevitably is more onerous and complicated than delivering standardized goods; while some makers reportedly have invested considerably in R&D to develop innovative products. Many in the sector have also installed state-of-the-art inspection instruments and CNC (computerized numerically controlled) production equipment, helping to sharpen product quality. Larger firms have even acquired overseas plants in more industrialized nations to better access such market. TAMI president C.C. Wang says Taiwan-made machinery parts and accessories have high quality-to-price ratios, hence are popular globally.

Broaching Machine
Chin Liang Broach Tools Works Co., Ltd., established in 1979 and run by a second-generation proprietor, is one of a handful in Taiwan offering wide-ranging broaching tools.

The company specializes in developing broaching tools for open-end and combination wrenches. “With years of development, my company has diversified into broaching tools for bicycle, motorcycle, automobile and hand-tool parts and accessories,” says president Tsai Chih-liang, adding that, to keep consistently high-quality, his company imports high-speed steel from Japan and Europe to meet special requirements of global customers.

An indication of this maker's versatility is the extensive range, including broaching tools for open-end wrenches, combination wrenches, adjustable wrenches, straight gears, keyways, flange-wrench, external and internal threads etc.

Mainly an OEM/ODM (original equipment/design manufacturer) with major clients from Europe and Southeast Asia, Chin Liang has tapped the high-end market by installing advanced, costly production equipment for complex manufacturing.

For instance, five years ago the company imported a CNC broach-grinder for over NT$30 million from Switzerland, which helps to maintain the maker's uncompromising standard of keeping machining tolerance within 5μ.

With a full range of production equipment and state-of-the-art inspection devices, coupled with five seasoned technicians honing fabrication techniques, Chin Liang is fully capable of churning out high-value-added broaching tools to enable customers complete machining in-house.

Despite being rocked by the global downturn that halved sales in 2009 from the preceding year, the company has recovered in the first half of this year. “We've been working overtime since February to fill flooding orders. I believe increasingly more metal-parts manufacturers will learn to use broaching tools to streamline production, which will boost our sales,” says Tsai.

Air-cushioned Tables

Chanto Air Hydraulics Co., Ltd., established three decades ago, is a well-known maker of pneumatic and hydraulic automation equipment in Taiwan, supplying mainly pneumatic cylinder kits, pneumatic grippers, rotary actuators, index tables, air presses, hydraulic presses, pneumatic control for FRL, solenoid valve, fluid valve, control valve, fitting, tube, accessories etc.

With ample manufacturing experience and backed by experienced engineers, technicians and quality management system, the TUV Rheinland ISO9001:2000-certified maker can provide high-quality, durable products that are optional replacements for Japan-made SMC products, and has been filling OEM orders for several internationally renowned companies for over 10 years.

The company's most popular item—the GXS-series air-cushioned worktable—has an integrated air cylinder. Its twin-slide design, more precise than a single slide, is ideal for precision assembly, with the dual piston rod offering twice the thrust for better action, while tri-directional mounting is possible.

With considerable global presence, the company has non-exclusive distributors in Turkey, India, China, Vietnam, Thailand, Singapore, Malaysia, Indonesia, the Philippines, Latin America, North America, Europe, Australia, and South Africa.

Machine-tool Accessories

Frank Phoenix International Corp., a leading maker and exporter of machine tools and accessories in Taiwan, has an in-house R&D department developing innovative products, claiming to always pay close attention to quality enhancement to set itself apart from rivals.

The company has three major product lines, including bed-type computer numerically controlled (CNC) milling machines with 800mm-3000mm X-axis travel, CNC lathes with swing-over beds measuring 450-1200mm x 1000-6000mm, and vertical machining centers with 500mm-1600mm X-axis travel.

Also offering extensive accessories and components, Frank Phoenix supplies adjustable hoses, valves and nozzles, submersible pumps, self-priming pumps, work lights, chip conveyors, jig blocks for machine tools, oil skimmers, lubricators and peripheral parts, air power draw bars, electrode tubes for electric discharge machines, power table feeds/gear-type power table feeds, and cartridge filters for die-sinking EDMs.

Air-Hydro Components

Deter Enterprise Co., Ltd., established in 1988 and imports pneumatic parts to develop specialized machinery components to help customers boost production efficiency, has a modern factory in Taiping, Taichung City, central Taiwan, equipped with state-of-the-art production equipment and inspection devices to ensure high product quality.

Selling products under its own DETER and Fluid-Technik brands, Deter can help customers develop air-hydraulic components that are modularized to streamline production.

Deter president Chen Tien-cheng says his company is dedicated to helping customers with product segmentation to elevate competitiveness and profitability, adding that Deter's products can enhance added-value of machinery and automated production equipment.

Deter has wide-ranging products, including power-unit cylinder, booster, unclamping cylinder, low-friction cylinder, weight system, hydraulic pressure boost pump, LED (light emitting diode), digital pressure switch, pressure pump, speed control cylinder, air-hydro converter, high-pressure gas booster, high-pressure solenoid, special valves and cylinders.