Taiwan manufacturers of plastic injection molding machines, mostly located in Tainan and Kaohsiung counties, southern Taiwan, are gearing up to diversify product mixes to fend off underselling from neighboring nations. The industry has been developing for over four decades in Taiwan as one of the top-export segments in industrial machinery.

Faced with the competition from low-priced plastic injection molding machines made by mainland China, Taiwan`s seven manufacturers have resolved to team up to develop four models of high-end all-electric injection molding machines to meet the demand for green production.



The seven manufacturers, including parts suppliers, are Multiplas Enginery Co., Fu Chun Shin Machinery Manufacture Co., Victor Taihung Machinery Works Co., Chum Power Machinery Corp., Outstanding Machinery Mfg. Co., Launch Machinery Works Co., and Teco Electro Devices Co.

To facilitate the development of the high-end machines, the above-mentioned seven manufacturers have applied for R&D subsidy of NT$70 million (US$2.13 million at US$1:NT$32.8) with the Ministry of Economic Affairs.

It is expected that the introduction of the high-end machines would help domestic manufacturers secure an additional NT$10 billion (US$304.87 million) in annual sales of domestic plastic injection molding machinery.

In addition to enhancing the profitability of domestic manufacturers, the alliance will also help member companies slash production costs through the integration of resources and development expertise.

Towards such end, Outstanding Machinery will be in charge of developing machinery modules and knuckle components; Launch will develop ballscrew modules; and Teco Electro will focus on researching servomotors and drivers. The localization of the above-mentioned key components will be able to help domestic manufacturers in this field cut production costs by over 30%.

In addition, Victor Taichung will be responsible for the development of the all-electric plastic injection molding machines with clamping force of 300 tons; Fu Chun Shin will develop the models with clamping force of under 300 tons; Multiplas will be in charge of developing vertical plastic injection molding machines; and Chum Power will develop all-electric injection blow molding machines.

Y.C. Hu, chairman of Multiplas, says the alliance`s seven manufacturers would set aside NT$180 million (US$5.48 million) to develop the high-end all-electric injection molding machines. The alliance is expected to begin development by the end of this year and would debut their research outcome in two years after the development process begins.

In-mold Labeling Machines

With consistent expansion of production capacity over the past several years, Chuan Lih Fa Machinery Works Co., Ltd., founded in 1966, has grown up as a leading supplier of a wide range of high-speed injection-molding machines, multi-resin/color injection-molding machines, vertical injection-molding machines, and mold-spotting presses.



Since its inception, the company has never ceased development of innovative products. This year, the company mainly promotes the newly developed in-mold labeling machines featuring a specially designed labeling mechanism.

In the past, Chuan Lih Fa concentrated on the production of single-unit plastic injection molding machines. Seeing the rise of such developing nations as mainland China, the company has recently switched to focus on high-precision integrated production equipment.

"We have extended our production to the mainland," says Michael M.S. Guo, assistant general manager of the company. "But we only produce custom-made machinery in Taiwan. Our high-quality products produced in Taiwan have the same quality as those made in Western Europe and Japan but at a half price."

With years of development, the company is now capable of rolling out high-end plastic injection molding machines that can be used to produce such sophisticated products as PET (polyethylene terephthalate) bottles and tubing for medical use.

Over the past three years, Chuan Lih Fa has been busy with production capacity by extending production to all-electric plastic injection molding machines. To facilitate its production of the all-electric models, the company is building a new factory of 30,000 square meters in Kuanmiao of Tainan County, southern Taiwan. After the new factory is completed by the end of this year to facilitate the production of conventional hydraulic models, the company`s existing two factories in Yungkang, also in Tainan County, will focus on the production of high-end all-electric models.

Guo says his company is Taiwan`s largest producer of all-electric plastic injection molding machines, followed by Victor Taichung Machinery Works Co. which focuses on the production of CNC (computerized numerically controlled) lathes and machining centers.



Guo is a senior manager at Chuan Lih Fa. "Differing from machine-tool manufacturers, producers of plastic injection molding machines have to heavily rely on professional managers who should have sophisticated management concept," Guo comments. "That`s why some domestic manufacturers of machine tools have phased out production of plastic injection molding machines because they adopt outdated management concept."

In Guo`s view, the production of plastic injection molding machines relies on alloy steel with heat treatment. "Because of the complicate production procedure, production of plastic injection molding machines needs the implementation of a stringent cost-control system and efficient working hour management to meet high unit output."

Based on the concrete management concept, Chuan Lih Fa boasts it earns from the development of advanced technologies, rather than mass production. All the products it produces have to meet customers` specific requirements. That`s why the company has been able to stay profitable over the past few years while rival competitors have been in the red.

Lin Jung-teng, the company`s president, attributes the firm`s steady and smooth growth to its strict adherence to the motto "advanced technology, top quality & honest management."

Under this guideline, the company has rigorously improved machinery designs, upgraded product quality, which have met customers` ever more demanding requirements. The ISO901 certification, CE certification, and good-product design awards granted to the company over the past few years are clear demonstration to its ceaseless strives toward the offering of total satisfaction to its clients.

Starting with a small team of just five members, after a series of expansions over the past years Chuan Lih Fa now has over 200 employees of two factories in Taiwan, plus more than 250 people working at two factories in mainland China. The two China plants are located in Shanghai Municipality and in Zhongshan of Guangdong Province, focusing on the production of 100-ton up to 1,380-ton injection-molding machines.

The company has already set up service outlets in such big mainland cities as Zhongshan, Shenzhen, Tangxia, Changping, Huizhou, Guangzhou, Xiamen, Shanghai, Kuengshan, Suzhou, Nanjing, Yuyao, and Huangian. In the foreseeable future, more service stations will be established in Chongqing, Tianjin, and Guilin.

Based in Yungkang City of Tainan County in southern Taiwan, the company maintains two plants, two branches, and an R&D facility on the island. It has also established overseas branches in Hong Kong and Vietnam.

Lin says the R&D crew is composed of professional engineers with much design and manufacturing experience who are responsible for overall design and planning for new products and functions. Rigorous quality control is maintained under the principle "manufacturing with utmost attention and strictest inspection."

Typically 72 hours of nonstop testing is done before an item at Chuan Lih Fa is shipped to customers worldwide. Comprehensive after-sales service is part of the company`s guarantee to ensure industry-leading customer satisfaction, Lin adds. Major export markets include mainland China, and other Asian countries, Canada, Latin America, and the Middle East.

The company is constructing a new plant of 40,000 square meters in Vietnam, which will be completed at the end of this year or in the beginning of next year. The company says the new plant in Vietnam will focus on small-sized plastic injection molding machines to meet the requirements of Taiwanese investors there.

Self-design Screws

Fu Yu Shan Machinery Works & Co., Ltd., one of Taiwan`s leading manufacturers of plastics injection and extruding machines, has laid solid foundation in domestic and overseas market as it has accumulated a lot of know-how in developing sophisticated machinery since its inception in 1976.



Starting operations as a machinery designer for domestic machinery manufacturers, Fu Yu Shan has well established its development and production capacity to roll out sophisticated machinery in the plastic injection and extrusion field.

With 31 years of manufacturing experience, Fu Yu Shan has made considerable success to expand its product from being manual to computerized ones. The company boasts it has developed unique technology in designing most-reliable temperature-control system to fit the need of the plastic injection and extrusion sector.

Plastic extrusion machinery accounts for 70% of Fu Yu Shan`s total output with the remaining 30% going to injection molding machines. Over the past three decades, the company has consistently improved its products from manual types, semi-automated types to fully automated models. The company notes it is capable of designing and producing suitable screws for using in the plastic extrusion machines in accord with the specific nature of the injected materials.

The company`s major product lines include co-extrusion recycling machine, extrusion recycling machine, extrusion dyeing reproduction machine, ABS/PVC/PE pipe making machine, PP baling strap making machine, one-two color sheet extrusion machine, acrylic sheet extrusion machine, automatic extruding injection last making machine, English/Chinese injection molding machine, and such peripheral equipment as crusher and breakable crusher, hydraulic cutting machine, aluminum/brass die-casting machine, and vibrating loader.

The aluminum die-casting machine designed by Fu Yu Shan is suitable for the production of aluminum die-cast automobile components and parts.

S.H. Chiu, the company`s spokeswoman, says her company is capable of rolling out the automatic extruding injection last making machine for producing seven-kilogram last because of the use of specially designed screw. The company boasts it is Taiwan`s first producer to make such machine since the machine was first introduced in 1986.

"We consign a domestic specialist manufacturer to produce the special screw through the Auto CAD software design system," notes Chiu. "In addition to single-unit machines, we also provide whole-equipment exports to help customers complete the setup of production facilities."

For instance, the company recently received an order from a domestic customer who asked the company to help design a specialized machine for recycling plastic waste materials. "To design the specialized machine, we have to consult the customer from the beginning to look into his real requirements. Fortunately, based on our long-term manufacturing experience, we can create the specialized machine to meet his special requirements," says Chiu.

Since its inception, Fu Yu Shan has paid much attention to elevating the quality of its products. Although the company has set up a factory in Dongguan of Guangdong Province, mainland China, it still carries out research and design capability in Taiwan. "With years of investments in the mainland, we have found that mainland China couldn`t offer high-quality parts to fit our production," Chiu says. "In that case, we have to export key components from Taiwan to meet our production in the mainland. Major components shipped from Taiwan include gears, screws, and some needed heat treatment. In addition, we have to ship high-end nickel-chrome alloy steel from Taiwan because mainland failed to produce such high-quality materials."

The company says its products turned out in the mainland are mainly supplied to foreign and Taiwanese investors. "Sticking to production of high-quality machines since our inception, we have kept producing high-end products without trying to undersell," says Chiu. "Our dedication to producing high-end products has paid off because one of our domestic customers once told me that he has used our machine for over two decades and the machine is still running."

The company exports half of its overall output, mainly to Brazil, Egypt, Saudi Arabia, Turkey and Iran. Recently, the company just made an inroad into the North Korean market.

Full Range of Injection Molding Machines

Huarong Plastic Machinery Co., Ltd., one of Taiwan`s most specialized manufacturers of plastic processing machines, focuses on the development and production of safe and durable thermoplastic and thermosetting plastic injection molding machines.

With an in-house research and development department, Huarong is dedicated to developing high-precision plastic injection molding machines by making use of its core technologies since its establishment two decades ago.

To ensure the quality of its products, the company adopts a lot of imported precision production equipment, including CNC (computerized numerically controlled) machining centers, lathes, milling machines, and heat-treatment machines.

To enhance operating capacity, in 2004 Huarong launched a new factory in Taiwan with total investments of NT$120 million (US$3.75 million). The company`s annual sales reach NT$200 million (US$6.25 million).

Over the past few years the company has seen stable growth in shipments. The substantial growth, says the company, can be partly attributed to the contribution from its mainland production facility located in Wuxi of Jiangsu province, mainland China.

Roy Hsiao, president of Huarong, notes that his company will not only increase production capacity but also make all-out efforts to develop sophisticated machines for a variety of industries, especially the optoelectronics sector.

Hsiao says his company is capable of rolling out high-, medium-, and low-price injection molding machines to meet different requirements of customers the world over. But the medium- and low-price models constitute the majority of the company`s output due to ample market demand.

The company`s high-pressure, high-speed injection molding machine is equipped with a PC (personal computer)-based controller, a Microsoft Windows CE operating system, and a hydraulic system produced by Yuken Co. of Japan. The machine can meet customers` requirements in the fields of quality, speed, and operating accuracy. The machine is suitable for such hi-tech industries as electronic components, communication device, optical lens, and medical equipment.

One of Huarong`s hottest-selling product lines is the HRN-series injection-molding machine which features in-mold labeling without the need of another printing process on injected products. The machine offers an integrated molding process to ensure permanent effects.

In addition to developing high-end machines, Huarong has also emphasized providing pre- and after-sale services. With three business units each in northern, central and southern Taiwan, the company has already set up 12 service centers across mainland China.

Vertical Injection Molding Machines

Shin Tien Chi Machinery Works Co., established in 1987, is one of Taiwan`s most professional manufacturers of injection molding machines. Recently, the company debuted a new model of vertical plastic injection molding machines to meet the special requirements of customers from the 3C (computer, communications, and consumer electronics) industry. The company has a factory located in Yungkang of Tainan County, southern Taiwan.

The company says it adopts a stable high-precision computerized numerically controlled system on its plastic injection molding machines with clamping force ranging from 45 up to 2,000 tons.

Since its inception, the company has been devoted to enhancing product quality and upgrade functionality.

With a work force of 50, the company`s major product lines are vertical and horizontal plastic injection molding machines, thermosetting injection molding machines, special injection molding machines, compression molding machines, transfer molding machines, and tablet machines.

The company`s vertical injection molding machines feature central monitoring system with liquid crystal display (LCD) controller, clear and interchangeable LCD screens to enable convenient ergonomic interface operation, energy-saving hydraulic system, precise module control system, super-hard platen, mold protection device and precise molding performance, lower mold slide activated to enable external ejection.

The company boasts its products have stronger competitive advantages over those developed by rival manufacturers in this line because of the adoption of high-precision components and parts. In addition, the company insists on delivering products in time to meet urgent demands globally.

(by Ben Shen)