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Kenturn Announces Ambitious Diversification Plan

Jan 28, 2014 | By Ken Liu

Kenturn Nano. Tech. Co., Ltd., a leading spindle manufacturer in Taiwan, recently announced plans to boost its consolidated revenue to NT$10 billion (US$333.3 million) by 2020 from the estimated NT$430 million (US$14.3 million) for 2013 and NT$320 million (US$10.6 million) recorded in 2012, and go public on the over-the-counter market by 2016, according to chairman, H.T. Yeh, whose ambitious goal revolves around the company's diversification plan and to make its spindle “intelligent”.

Driving the company's diversification plan and intelligent-equipment plan, according to Yeh, is the intensifying competition in the global spindle market and concern for sustainable operation.

The diversification plan calls for the company to branch into producing high-speed gear boxes, ultra-precision cutters, precision components for semiconductor manufacturing and flat-panel display manufacturing equipment from machine-tool spindle production; while making product smarter involves developing spindle system that automatically shuts off upon sensing irregularities, including overheat, overload, vibration, and over expansion.

To achieve such goals, the company is building a new plant incorporating an R&D facility on five hectares for some NT$6 billion (US$200 million) in the Chunghwa Coastal Industrial Park in central Taiwan, where the first and second stages of construction will be completed and begin general production by the end of the first quarter of 2014, with the project to take six years to complete.

When the 2014 production plan starts, the company estimates its revenue to rise 50% from 2013 in 2014 and double to NT$1.2 billion (US$40 million) in 2015.

Upon completion of the plan,  high value-added parts will make up 80% of the company's total production initially, with high-precision spindles filling the remaining production.

When opened in 1983, Kenturn made spindles for measurement equipment and grinding spindles before migrating to production of high-frequency spindles, built-in motor spindles, machine-tool spindles, and spindles for special-purpose machines and general machines. Currently, the company turns out 15,000-plus sets of various spindles a year, setting aside 80% of the outputs for shipments to Europe, the United States, China, and India.

According to Yeh, the company had released over 5,000 types of spindles independently for the  semiconductor, automobile, electronics, optoelectronics, robotic arms, machine tools, and production equipment sectors, also manufacturing turnkey equipment for flat-panel manufacturers, including AU Optotronics Corp. (AUO) and Chi Mei Optoelectronics Corp. Its extensive manufacturing capability is achieved by the company's solid R&D capability, enabling rolling out 400-plus new models a year.

While most of the company's products are built to orders, the company promotes its own brand "Kenturn," also  filling orders in around 90 days, for 40-50% less than international heavyweights.

To ensure high precision, low vibration, good spinning balance, and easy-installation, Kenturn has high-end manufacturing tools, including 10,000-Class constant temperature and humidity factory, and precision examination equipment. (KL)



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