UN Fuel Tank Remains Resilient Amid Global Economic Turbulence

UN Fuel Tank Manufacture Co. remains resilient in spite of the ongoing global economic turbulence caused by the Trump Administration’s devastating reciprocal tariffs on almost all countries across the world, the geopolitical Russia-Ukraine war, and the material shortages that have impacted logistics and raw material prices, according to company general manager, Chan

Yu-Peng. He said the company has resolved most of these issues to hone its competitiveness.

The company has successfully broken into the market for vintage fuel tanks after over 48 years of operation in vehicle fuel system manufacturing, becoming one of the world’s few suppliers of total solutions to the gas tanks amid rising global demand for vintage car collection and repairing and maintenance.

The company produces at least 3,000 product items using its 2,000-some sets of mold and in-house facilities encompassing all processes from metal processing and welding to assembly, to assure that each batch of its products truly reflects the original flavor of vintage cars.

To boost production efficiency and stability for steady supply of quality vintage fuel systems in the global market, the company has phased in robotic arms to carry out semi-automated production and plans to transition into full automation.

The company has recently opened a new factory, which sits on 4,000 pings of land at the Xiluo Fu Tian Industry Park in the southern Taiwan county of Yunlin. The new factory, which has entered mass production, is equipped with more production capacity to cope with the ever-changing market and buyer needs. In particular, the added capacity has resolved a portion of the company’s highly urgent orders in a timely manner, not to mention handling regular orders as well, according to Chan.

Also on the site are several amenities that foster the trust between labor and management, including an employee dormitory. Chan says these hospitable facilities are intended to make his employees feel like being a family, an idea widely supported among his workers. In return, the workers have boosted productivity with high morale.

UN Fuel Tank is also widely known to own the world’s largest number and inventory of molds for fuel systems. As these molds are often too huge and heavy to move around, the company built a facility behind the new factory to store these molds. All these new equipment and facilities help Chan cut down mold changing time for better production efficiency.

Labor Shortages Heavy on GM's Mind

Similar to many developed countries around the world, Taiwan is on track to experience labor shortages due to a lack of talent and low birth rates. Chan said this is especially so in the manufacturing industry, and the company has plans to work closely with academic institutions to cultivate talents through relevant channels. This will help elevate unemployment rates and unburden the government, as well as offer an opportunity for UN Fuel Tank to train management trainees.

The new factory's upgraded equipment is imported from Japan. Through 3D and 2D laser cutting, these new technologies have helped reduce the time to develop molds and improved their capacity to offer low-volume, high-mix orders. In addition, the newly assembled machinery robotic arms are also now online, introducing semi-automated production at the new factory.

Chan stresses the company has transformed itself into a manufacturer of vintage fuel tanks for many fast to the idea of crafting workpieces delicately and finely to build the fuel tanks that can truly render the historical details and maneuverability of a vintage car. The rush for collecting vintage cars and the unique value of vintage car culture have been underscored by the rise of electric vehicles.

Global Impacts

It is the year optimistically touted as the beginning of recovery after two years of setbacks from COVID-19 pandemic, but material shortages, price hikes, and the Russia-Ukraine war have prompted industries to scale back their expectations for a strong economic rebound. For UN Fuel Tank, its shipments in the aftermarket saw some impact due to the pandemic, Chan said, but its sales of fuel supply systems for vintage cars had signifi cantly increased, a situation which he attributed to WFH trends during the pandemic.

Given that consumers are likely and willing to spend more time on their vehicles, they are inclined to snap up more vintage car parts. Chan said that primary demands are coming from the European and North American markets; therefore, his company’s plowing into the vintage car market was correct. While environmental issues are a main concern of governments, consumers, and markets alike, Chan believes that maintaining different market demands and extending the product life span for vintage vehicles are as crucial.

The company can fully supply the most diverse product line, with products adhering to international certifications and environmental regulations as the highest standard requirements.

A More Sustainable Outlook

Thanks to the automated powder-coating equipment the company acquired many years ago, the company’s surface treatment on its fuel tanks builds protective layers that are three times thicker than ordinary coating to better resist oxidizing. The treatment technology is less environmentally harmful and pollutive.

While the equipment is pricier than standard machines, UN Fuel Tank believes the expense is worth it given the long-term value the equipment can offer.

Furthermore, the equipment fulfi lls its commitment to a greener choice and employee health. These eff orts are highly recognized and lauded by international buyers.

UN Fuel Tank exports a 95% majority of its products to overseas markets and has made a name for itself in terms of branding in the international market. Apart from fuel tanks and fuel supply system parts, UN Fuel Tank offers a one-stop fuel solution for customers. For instance, costs for repairing and maintenance of fuel tank systems can end up quite high due to parts coming from different assembly lines, which can also cause issues with warranty claims. UN Fuel Tank believes that clients will benefit from rigorously certified product quality and products manufactured using specialized equipment by offering a one-stop solution.

The automotive industry is an over-century-old sector. Amid the recent trends and challenges, UN Fuel Tank will continue to innovate to keep up with the changing times.

UN FUEL TANK MANUFACTURE CO.

No. 68-160, Shekou, Xiluo Township, Yunlin County 648005, Taiwan

Tel: 886-5-587-1355

Fax: 886-5-587-9796

E-mail: lesley@fueltank.com.tw

Website: www.fueltank.com.tw, www.cens.com/fueltank