Integrated systems efforts growing for Taiwan's Fu Chun Shin

By Steve Toloken
News Editor / International

Published: October 18, 2013 1:40 pm ET
Updated: October 18, 2013 1:44 pm ET

Image By: Steve Toloken Benjamin Lee and Christine Kuo

Related to this story

Topics China, Machinery, K 2013, Business News & Features

Taiwanese injection press maker Fu Chun Shin Machinery Manufacture Co. Ltd. (Hall 8B/A24-2) sees selling integrated systems of molding machines, robots and other auxiliaries, with FCS bringing it all to the customer, as one of its key paths forward.

The Tainan City-based company, which is Taiwan's largest injection molding machine maker, is using the K 2013 to introduce its latest SD-SV series, a 150-ton model integrated with a robot and other auxiliary equipment.

Beyond K, the company is also taking a "serious" look at investments outside its base in Taiwan and mainland China, likely Brazil or Indonesia. And it hopes to substantially ramp up sales in North America after signing a partnership last year with Maruka USA.

But its immediate focus at K will be on pushing its integrated systems.

"We are emphasizing turnkey solutions for our customers so this time in K we are showing a whole system, including the machine, mold, robot, conveyer system and even the cutting machine," said John Hsieh, area manager for the company.

"It's really strongly connected with customer behavior," he said. "For the past few years customers want to buy all their solutions from one supplier."

Such integrated systems make up 40 percent of the company's annual revenues of about $100 million, a significant jump from about 20 percent of turnover five years ago, when the company introduced its first in-mold labeling system.

At the time, much of its efforts focused around selling machines and molds, with not nearly as much attention paid to other extras like robots.

Today it wants to build partnerships with a broader range of equipment manufacturers but said it's unlikely to make those auxiliaries in-house, as some larger European competitors have done.

"We will not buy a company [and] we will not build a department by ourselves," Hsieh said. "Basically we would like to work with our suppliers, maybe a joint venture or maybe we can buy their stock. We'll cooperate in this way."

"We understand our situation," he said. "We cannot compete with Chinese machine makers on the cost side. We can only compete with them on our flexibility, on new developments and making our machines more stable than before."

At K, the company's servo-powered SD-SV machine will be molding an iPhone holder made with PMMA, with a 120-second cycle time.

The machine's Japanese servo and pump-switching control technology means it uses 40 percent less energy compared to traditional molding machines "when used under ideal conditions," FCS said. It said the long cycle time is meant to highlight the machine's energy-saving capabilities.

The iPhone holder is made with a highly-transparent grade of PMMA and it's manufactured without yellowing or bubbles, FCS said, to illustrate the machine's precise molding capabilities, including its unique screw design.

The SD-SV series is targeted at markets like housewares, food containers and car parts. The company hopes the new machines can help it navigate the ups-and-downs of the economy.

Its orders in the fourth quarter dropped, a casualty of slowdowns in global markets, including in China. It entered this year expecting more difficulties but found a pickup from an unexpected place – its local market in Taiwan.

"We got lots of orders from the Taiwan market," Hsieh said.

Some of that, he said, comes from local auto parts aftermarket companies.

FCS believes that its investments in developing better two-platen machines are paying off, as Taiwanese auto parts companies that previously would have looked to more established overseas suppliers of two-platens are now more comfortable with FCS designs, Hsieh said.

FCS said it has sold two-platen models worldwide, including in India, Brazil, China and Taiwan, and is trying to carve out a niche making its machines more customizable and lower-cost than other two-platen models.

They also found sales have been helped by more Taiwanese companies relocating their production from mainland China to Taiwan, as costs rise in China, Hsieh said.

"We have some information that maybe some Taiwan companies move back from China to Taiwan," he said.

FCS is also focused on growth outside mainland China and Taiwan. The company is considering additional investment in Brazil or Indonesia, beginning with a service center that could be expanded to a factory.

While details remain undecided it's a "serious" evaluation, Hsieh said.

The company currently has one factory in Taiwan and two in mainland China, with capacity to make more than 1,000 machines a year.

FCS is also trying to make a much bigger push into North America, where it last year struck an agreement with Maruka USA to sell FCS hydraulic machines in the United States and part of Mexico.

Maruka USA, which is part of Osaka, Japan-based Maruka Machinery Co. Ltd., has historically focused on selling presses from Japan's Toyo Machinery and Metal Co. Ltd.

FCS said the two companies believe they can sell about 150 FCS machines a year in North America by 2016, including within the supply chain of Japanese companies there who may be looking for other options, said FCS Director Benjamin Lee.

So far the two companies have sold 16 machines and 48 sets of molds, he said. The 48 sets of molds went to one Japanese customer's factory in Mexico.

"North America is not like Japan," Lee said. "In Japan, the injection molding machine maker, maybe 99 percent of the machines they produce are fully-electric machines. Even if they want to mold a bowl or a cup, they will use an electric machine."

But not so in North America, he said. He said the two companies have moved slowly to build their partnership.

"Maruka is a Japanese-style company – they are very careful with their reputation and machine quality," Lee said. "After 2012 and 2013, we think we are ready now to promote our machines with more energy in the North American area."


Comments

Integrated systems efforts growing for Taiwan's Fu Chun Shin

By Steve Toloken
News Editor / International

Published: October 18, 2013 1:40 pm ET
Updated: October 18, 2013 1:44 pm ET

Post Your Comments


Back to story


More stories

Image

DuPont-Chenguang JV to produce fluoroelastomers in China

January 29, 2015 12:30 pm ET

DuPont Fluoropolymer Solutions and Zhonghao Chenguang Chemical Research Institute Co. Ltd. are proceeding with a 50-50 joint venture to serve the...    More

Image

China XD to catch up on Sichuan project

January 28, 2015 2:41 pm ET

Automotive compounder China XD Plastics Co. Ltd. (Nasdaq: CXDC) has been working on its fourth production base in Nanchong, Sichuan province since...    More

Image

Piovan buys majority stake in Italy's Penta

January 28, 2015 12:04 pm ET

Italian auxiliary equipment company Piovan SpA has acquired a majority stake in the Italian materials handling company Penta srl, based in Poggio...    More

Image

China's plastics industry making a shift

January 27, 2015 3:41 pm ET

China's plastic industry is in the midst of a “profound adjustment” from large-scale and high-speed growth to growth focused on quality,...    More

Image

Citadel opens second compounding facility in China, near Shanghai

January 27, 2015 3:22 pm ET

Citadel Plastics Inc., the American manufacturer of thermoplastic and engineered composite compounds, has opened its second facility in China, outside...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events