Taiwan's Makers of Plumbing Parts Cope with Low-cost Rivals

Flexible production with inventory control is one way to stay ahead

In recent years, Taiwan-made fluid conveyance and power control systems and parts have been widely applied as critical components in industries including machine tools, metalworking, industrial, engineering machinery, and semiconductor, with makers focusing on high-value-added products and broadening business scope to stay ahead of competitors in low-cost countries, especially mainland China.

Underselling threat luckily is somewhat offset by Taiwanese makers' product variety that meet special requirements of buyers, with major products including valves, air compressors, pneumatic and hydro-pneumatic parts, special filters, energy-saving controllers, automated water-drainage devices, bronze/brass pipe fittings, and special rubber parts etc.

Safety Valves
Hopeet Enterprise Co., Ltd., founded in 1968 in Taichung City, central Taiwan, is a seasoned OEM (original equipment manufacturer) of valves in Taiwan, especially safety valves. David Wang, the founder, says the firm's safety valves meet high technological requirement in the industry, and are widely applied in various industries including semiconductor production. Apart from safety valves, Hopeet also supplies ball valve, needle valve, cock, Y-Type cylinder control valve, vacuum valve, and flow control valve.

The company boasts strong production capability, able to independently fine-tune its production machinery to develop customized valves for clients, even high-pressure ones required. “I'm proud that only few competitors can rival Hopeet in comprehensiveness of safety valves,” claims Wang, whose firm also has expertise in material science to be recognized as a competent ODM.

The maker's on focus product quality enables the company's pressure-relief valves to pass assembly and safety tests by the Taiwan Hardware Test Center. And over three decades of manufacturing experience allow Hopeet to develop a series of computerized numerically controlled (CNC) QC equipment.

The firm exports 70% of output globally. “High technological threshold of manufacturing safety valves allows few competitors into the sector. Backed by technological expertise in safety valves and abundant client base, Hopeet's sales is rarely affected by sluggish global economy,” says Wang, who adds that revenues have been growing 10% in recent years.

With strong R&D and extensive inventory of modules, the ISO9001:2008 certified company maintains flexible production and welcomes joint ventures with customers in various industries.

Efficient Inventory Control
Backed by over three decades of manufacturing experience, Allbiz Enterprise Co. supplies a wide range of hardware, including pressure-reducing valves, safety-relief valves, automatic air vent, water gauge valves/cocks, water hammer arrestors, and bronze/brass pipe fittings for various industries on the OEM and ODM basis.

With sufficient production know-how, the company welcomes joint ventures with customers to supply technical assistance or product upgrading, as well as helping customers source parts accordingly. “A core strength of Allbiz lies in inventory management, which not only improves operational efficiency, but helps customers save remarkable cost in molding and production time, shortening overseas delivery to less than two weeks,” says Neil Kuo, the manager.

To improve production capability and maintain stable product quality, the firm adopts state-of-the-art equipment including CNC lathes. Kuo says over 25 years of expertise enable the firm to supply pressure-reducing valves that are known for reliability globally, and are available in a comprehensive range including piston and diaphragm models.

Kuo stresses that every step of production undergoes strict quality control, including manufacture, assembly, packaging, and shipping. “We consistently improve QC capability to make sure that every product meets standard quality and special requirements for customers.” Hence the ISO 9001: 2000 certified maker turns out products meeting international standards as ANSI, ASTM, BS, and DIN.

Facing competitors from China who generally lack in-house expertise, Kuo says the firm aims for customized orders regardless of quantity, which suits Allbiz's flexible production thanks to inventory control. The maker mainly exports to North America and Europe, but expects to expand into emerging markets as Southeast Asia and Central & South Americas due to increasing demand from public works projects.

Gradual Branding Program
Yung Gang Enterprise Co., Ltd., established in 2007, specializes in supplying valves, metal fittings, and hardware, providing comprehensive industrial solutions for customers worldwide. Since its inception, the firm has been developing the "Yung Gang" brand, as well as filling ODM orders.

“With an outstanding R&D team, we can also help customers with value-added services and product development,” says Jerry Ho, the general manager. Over the years, Yung Gang has cooperated technologically with Spirax-Sarco Ltd., an UK-based supplier of boiler and pipeline control valves, to develop valves for industrial purposes, also enabling Yung Gang to gradually build solid reputation internationally.

Ho says that the company can design unique valves without seat and all-metal check valves. "We have specially improved the design of all metals for valves handling all kinds of liquids and gases," notes Ho. Traditional check valves easily leak when temperature reaches 200°C, but Yung Gang's seat-less check valves for petrochemical, food, and semiconductor industries can endure 500°C without leakage, improving lifespan of motors remarkably, hence being SGS (Societe Generale de Surveillance) certified in Taiwan.

Yung Gang also has developed three-piece check valves (seat-less) which are ultra-high temperature durable, while the firm's in-line check valves (seat-less) are designed to handle 10,000 pounds per square inch (PSI) pressure, being suitable for automatic plasma cleaner machines, water cleaners, drinking fountains, and pure-water dispensers.

Also notable is that, unlike most domestic valve makers being willing to invest in branding, Yung Gang has spared no efforts in building brand image since its inception. “We believe that branding helps us significantly in market reputation, and brand value remains even after twenty years,” says Ho. Furthermore and to more effectively reach its main market in Southeast Asia, the firm set up a marketing subsidiary in Singapore in 2010, and plans to establish another one in Hong Kong in 2013.

Looking ahead, Yung Gang will focus on three areas of improvement: service, innovation, and design. “As the global economy remains uncertain, we aim to offer extensive solutions to help customers fully solve problems,” says Ho, who adds that considerate customer service enables the firm to see revenues up steadily 10~15% in recent years.

Quality at Competitive Prices
Founded in 2006 in central Taiwan's Taichung City, Great Value Industry Co., Ltd. focuses on manufacturing a wide range of air compressors, which fully meet special requirements of global customers, especially from Japan, Europe, the U.S., Southeast Asia, and Australia. Apart from own-branded products, the firm also accepts OEM/ODM orders.

The company's product line includes two major categories: belt air compressor and direct air compressor. With an in-house R&D team, Great Value's direct air compressor “DT-412/424” series are chargeable with car batteries, while its belt model “GV-310P” is suitable for factories due to supreme efficiency in air-inflation.

To keep consistent product quality, Great Value carries out strict inspection that has enables the firm to build good reputation globally, as well as being CE certified in Europe.

“Undoubtedly Taiwanese makers of air compressors face fierce competition from China, so the only way to survive is to offer quality products at competitive prices, which is why we insist on strengthening product innovation,” says Justin Lin, the manager. Focusing on R&D enables the company to develop specialized products as specified by customers based on original drawings and samples.

Great Value's shipments remain stable, while domestic sales are growing steadily. Lin says the firm targets emerging market, especially Central & South Americas in the future.

R&D Focused
Established in 1988, Deter Enterprise Co., Ltd. focuses on research & development, while specializing in manufacturing and importing precision pneumatic parts, and producing specialized mechanical components to help customers boost production efficiency and segregate product lines. With nearly three decades of know-how, the firm has transformed from manufacturer to a comprehensive solution-provider of hydro-pneumatic components.

With a modern factory in Taiping Dist. of Taichung City in central Taiwan equipped with state-of-the-art production equipment and inspection instruments to ensure high product quality, the maker supplies mainly 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.

Tieng-Cheng Chen, the founder, claims that the firm has spared no effort in research and development, especially in accumulating expertise amid its technicians.” It is challenging to find R&D professionals in this industry, however, I am confident that we have gained sufficient and irreplaceable practical experience over the years, which enable us to provide components which raise added-value of machinery and automated equipment.”

Emphasizing supplying reliable, high-quality products, reasonable prices, and punctual delivery, Deter aims to meet all requirements of customers with product differentiation to enhance competitiveness and profit margin.