cens logo

Fair Friend Group Forms "F-Team" to Consolidate Resources to Take on S. Korean and Japanese Rivals

Team consists of 7 subsidiaries and 14 subcontractors

May 25, 2015 | By Ken Liu

Compiled by KEN LIU

The Fair Friend Ent. Group, Taiwan's biggest machine-tool conglomerate by revenue, has formed a consortium called “F-Team” and set up the production system “Fair Friend Group New Production System" (FNPS) as the foundation of its consolidation strategy or one trying to tap teamwork to take on South Korean and Japanese rivals.

Group Chairman Jimmy Chu stresses that Taiwanese machine-tool makers must consolidate to effectively compete against the two formidable rivals on the international market amid unprecedented circumstances.

The team is made up of seven of the group's subsidiaries on Taiwan and mainland China and 14 subcontractors. The subsidiaries include Fair Friend Enterprise Co., Ltd., Equiptop Hitech Corp., Leadwell CNC Machines Mfg., Corp., Sanco Machine & Tool Corp., Hanzhou Good Friend Precision Machinery Co., Ltd., and Hanzhou Leadwell CNC Machines Corp., with the subcontractors being Neo Precision Tech Co., Ltd., Takeshine Industry Co., Ltd., Long Shen Precision Industrial Co., Ltd., and Taiwan Spinflo Co., Ltd.

Chu says that his group has advantages not in possession of its competitors—manufacturing sites and distribution channels worldwide, specifically with 41 manufacturing sites, mostly in mainland China, Germany, Italy, Japan, South Korea and Taiwan, coupled with 26 brands globally.

Chu says the members of the consortium are able to strengthen their competitiveness overall by integrating group resources, as well as tapping manufacturing resources of its subcontractors around the Toyota Production System.

The group began implementing the FNPS and installed the Toyota Production System in 2011, examining every two weeks all production and management processes with improvement to ensure qualitative consistency, shorter lead time, and lower production cost. In 2004, the consortium achieved the goal of boosting efficiency by 40 percent per 3.30 square meters at manufacturing sites.

Chu concedes that only seven of his group's subsidiaries have joined the consortium, and the remaining 30 machine-tool suppliers will join in the future. The group's machine-tool business is predicted to generate revenue topping NT$50 billion (US$1.61 billion) in 2015, up from 2014's NT$45 billion (US$1.45 billion).

Besides machine tool, the company engages in printed circuit board (PCB), green-energy, and industrial-equipment businesses. Chu projects the group's machine-tool business to generate revenue of some NT$100 billion (US$3.22 billion) by 2020, with the potential to increase the group's total revenue to NT$200 billion (US$6.44 billion) in two years.

Fair Friend's president, J.C. Lee, says all of the group's subsidiaries have deployed FNPS, which has helped the group cut cost up to NT$55 million (US$1.77 million) through the end of 2014. He adds that the production system has effectively cut lead time of mass-produced machines by one-third, and the group is working to further shorten such lead time to only 32 hours.


Industry In-Focus

CENS and EDN held a joint booth at the fair to promote Taiwan-made auto parts.

Automechanika Shanghai 2019 Consolidates Status as Asia's Top Exhibition for Automotive OE and Aftermarket

Dec 10, 2019

Automechanika Shanghai 2019 is well on its way to continue its succession of record-breaking shows. Boasting even more industry participation than ever before, the fair sees 6,590 exhibitors from 46 countries and regions around the world, a five percent increase from the previous edition. The show introduces a host of new themed zones and areas in keeping with industry trends, as well as expands ...


This is the exterior of LC Fuel Tank's new plant which are being constructed in Xiluo Township. (photo courtesy of LC Fuel Tank)

Inevitable Rise of EV Spurs Fuel Tank Maker into Classic Car Industries

LC Fuel Tank Targets EU's Classic Car Market

Sep 05, 2019

As a top professional fuel systems manufacturer in Taiwan, and a global player in the automotive aftermarket industry, the fact that car makers are investing more resources into the electric vehicle (EV) than conventional vehicles powered by engine around the world is a challenging situation that LC Fuel Tank Manufacture Co needs to deal with. There’s no fuel tank in EV, only batteries. Each y...

LC FUEL TANK MANUFACTURE CO.


Taiwan's First Hand Tools Research and Testing Center Opens in Taichung on May 31(photo taken by Sung Chien-sheng)

Taiwan's First Hand Tools Research and Testing Center Opens in Taichung

Jul 23, 2019

In response to upgrading Taiwan’s hand tools industry and localizing services to the industry chains, China Steel Corporation (CSC), Taiwan Hand Tool Manufacturers' Association (THTMA) , Metal Industries R&D Center (MIRDC), and Corporate Synergy Development Center (CSD) have jointly established the research and testing center for hand tools in Taichung Industrial Park at the opening ceremony on M...



Industry Reports

CENS and EDN held a joint booth at the fair to promote Taiwan-made auto parts.

Automechanika Shanghai 2019 Consolidates Status as Asia's Top Exhibition for Automotive OE and Aftermarket

Dec 10, 2019

Automechanika Shanghai 2019 is well on its way to continue its succession of record-breaking shows. Boasting even more industry participation than ever before, the fair sees 6,590 exhibitors from 46 countries and regions around the world, a five percent increase from the previous edition. The show introduces a host of new themed zones and areas in keeping with industry trends, as well as expands ...


The US president Donald Trump
(photo courtesy of Agence France-Presse)

S. Korea most affected by U.S.-China trade spat: report

Dec 10, 2019

South Korea may have been hit the hardest among major economies by the protracted trade dispute between the United States and China due to its high dependence on exports to the countries, a report said Tuesday.The U.S. and China are the world's largest importers of South Korean products with shipments to China accounting for more than one-quarter of South Korea's overall exports last year, accord...


Trump reimpose tariffs on imports of steel and aluminium from Brazil and Argentina </h2>

Trump reimpose tariffs on imports of steel and aluminium from Brazil and Argentina

Dec 05, 2019

Donald Trump will reimpose tariffs on imports of steel and aluminium from Brazil and Argentina after accusing the countries of a “massive devaluation” of their currencies that hurt US farmers. The move — which was announced by Mr Trump on Twitter on Monday — sharply escalates trade tensions with the two struggling Latin American economies as they build closer ties with China.The announcement ...



Supplier News

Vacuum Carbon Fiber Aero kits-super is extremely light with high hardness and high quality。

TWL-CARBON Specializes in Carbon Fiber Components of High-End Sport Cars

Nov 29, 2019

■Lo Su-hua Founded in 2001, TWL started its career as auto parts and aftermarket accessories trading company while entering the field of OEM of carbon fiber auto parts in 2012. However, with many years of manufacturing experience, TWL found a problem that has existed so long in the carbon fiber auto parts industry–the prices in the carbon fiber auto parts’ material are hugely different and...

Twlcarbon CO. LTD.


Pneumatic tools Airboss invented attracted buyers attention in exhibitions (photo courtesy Airboss)

Airboss air tools co., ltd., the shortest pneumatic tools attracted attention

Nov 19, 2019

■Lo Su-hua Concentrated on R&D, after-service and production, the Taiwan-based Airboss Air Tool Co., Ltd., a world-caliber supplier of pneumatic tools, which specialized in manufacturing compacted, light-weight, user-friendly pneumatic tools, high safety. The products are made with magnesium alloy and many specialties as lightweight, high precision, high rigidity. They are not only eco-fri...

AIRBOSS AIR TOOL CO., LTD.


Hsin Yi Chang Industry Co., Ltd showcases their quality vehicle visors, which are designated products by global big names. (photo courtesy of Hsin Yi Chang)

Global Vehicle Visor Player Hsin Yi Chang Seeks to Woo New Clients

Nov 19, 2019

■Tseng Lung-nan Equipped with a top-down supply chain, Hsin Yi Chang Industry Co., Ltd. is a company that has over 38 years of experience in vehicle visors and various precise acrylic molding. The firm markets its brand under “HIC” in Taiwan and many countries worldwide. HIC has been rolling out new vehicle visors, compatible with over 2,000 car models and types. Hsin Yi Chang General Manag...

HSIN YI CHANG INDUSTRY CO., LTD.



Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...


Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...

PAUL MASTER AUTO PARTS CO.


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...



Exhibition Highlights

CENS and EDN held a joint booth at the fair to promote Taiwan-made auto parts.

Automechanika Shanghai 2019 Consolidates Status as Asia's Top Exhibition for Automotive OE and Aftermarket

Dec 10, 2019

Automechanika Shanghai 2019 is well on its way to continue its succession of record-breaking shows. Boasting even more industry participation than ever before, the fair sees 6,590 exhibitors from 46 countries and regions around the world, a five percent increase from the previous edition. The show introduces a host of new themed zones and areas in keeping with industry trends, as well as expands ...


Full throttle ahead as Automechanika Shanghai 2019 opens for its 15th edition </h2>

Full throttle ahead as Automechanika Shanghai 2019 opens for its 15th edition

Dec 02, 2019

As industry players approach the end of the year, Automechanika Shanghai 2019 participants look ahead at the latest products, services and technologies of the future. The show opens tomorrow until 6 December at the National Exhibition and Convention Center, (Shanghai). Being recognised as one of the most influential automotive trade fairs in the industry, it continues to act as a central hub for ...


59,000+ buyers visit twin lighting fairs and Eco Expo Asia Survey: lighting market steady; potential seen in smart products</h2>

59,000+ buyers visit twin lighting fairs and Eco Expo Asia Survey: lighting market steady; potential seen in smart products

Nov 12, 2019

Organised by the Hong Kong Trade Development Council (HKTDC), the 21st Hong Kong International Lighting Fair (Autumn Edition), the fourth Hong Kong International Outdoor and Tech Light Expo and the 14th Eco Expo Asia concluded with more than 59,000 buyers from 135 countries and regions visiting the three fairs. HKTDC Deputy Executive Director Benjamin Chau said: “Despite the recent public inc...