Taiwanese Yacht Hardware Makers Again Tap Synergy to Upgrade

Yacht Hardware R&D Alliance formed to develop electromechanical devices

Tasked to carry out an industrial development project to upgrade Taiwan's yacht hardware industry in Kaohsiung, southern Taiwan, the Metal Industries Research & Development Center (MIRDC) in 2010 again formed an R&D alliance in the wake of an earlier one that disbanded upon project termination in 2007.

Mark Tsai, project manager of Knowledge Management Application Service Section of MIRDC's Industrial Upgrading Service Department, was interviewed by CENS, shedding light on the new project and the directions of the alliance.

STARS Project Derived
Tsai pointed out that the first alliance of yacht hardware makers was derived from the STARS (Southern Taiwan Alliance of Researchers and Scholars) Project, initiated by the Department of Industrial Technology of the Ministry of Economic Affairs in 2005 to focus on developments of value-added manufacturing technologies.

The early alliance—the Yacht Hardware R&D Alliance—composed of seven members, including the largest yacht hardware supplier Aritex Products Co., Ltd. and the second-largest Machinery & Hardware Co., Ltd., which joined forces with the MIRDC to develop duplex stainless steel melt casting, lightweight aluminum foam plate processing and stainless steel tube hydro-forming technologies, erosion-resistant surface treatment and planarization, applications of analytic tools for developing high-capacity anchors, and positive-motion technology for automatic doors on yachts.

“The alliance was disbanded in 2007 when the STARS Project ended,” Tsai said. “Despite being a trial run, the project actually upgraded technologies in the traditional manufacturing industry.”

Citing duplex stainless steel melt casting, Tsai noted that the technology, which was jointly improved to sharply minimize pores on surfaces of duplex stainless steel melt-casting to less than three over 100-square-centimeters, is critical to enhancing quality of yacht parts and accessories made in Taiwan.

Quality of propeller blades, for instance, is closely related to such technology, mainly because the more pores on a propeller blade the easier it corrodes in sea water, Tsai said. Applying the improved melt-casting technology, alliance members are able to turn out metallic yacht parts that are more resistant to corrosion.

Development of lightweight aluminum foaming technology has also sharpened the industry's capability to make sound-proof boards for yacht construction. A maker has taken advantage of MIRDC's technology support to develop better sound-insulated and lighter boards that use foamed aluminum as soundproof material, according to Tsai.

New Alliance
Inspired by the success of the STARS Project, the Industrial Development Bureau decided to commission the MIRDC in 2010 to carry out another 3-year project by forming the Yacht Hardware Value Enhancement R&D Alliance to help Taiwanese yacht hardware makers clustered in the Dafa Industrial Park, said Tsai.

“IDB officials chose makers in the Dafa Industrial Park for the project for they're trying to upgrade the obsolete industrial park and enhance output value. One effective way to do so is to help such companies to tap synergy to go upmarket,” said Tsai.

With compass aimed differently relative to the earlier alliance, the new team focuses on development of electromechanical integration for yachts, instead of enhancing traditional manufacturing technologies, to better meet market demands for electronic and HID (human interface device) technologies that are increasingly sought after by yacht owners to raise level of comfort and convenience to monitor vessel conditions.

The development of yachts, especially luxury megayachts, is emulating that of consumer electronics, cars and smart buildings. Better interoperability of hardware and software to allow yacht owners to easily monitor yacht conditions and control electronic appliances and yacht equipment is gradually becoming de rigueur, a trend calling for makers to have plentiful knowledge of electromechanical integration and capacity for hard work, said Tsai.

Therefore, the MIRDC decided to invite Aritek again, along with a system integration supplier, precision casting maker, steel yacht furnishing producer and yacht builder to join the new alliance, to tap synergy among these partners of different specializations to develop electromechanical integration solutions for yacht equipment and furnishing, said Tsai.

Asked why not to tap synergy to focus on yacht building, Tsai answered that over 80% of yachts made in Taiwan are to-order and fully according to foreign designers' drawings for hull and overall structure, which, coupled with financial limitations of local yacht builders, restricts Taiwanese makers' development and innovation to some degree. However, Taiwanese suppliers have better chance to build presence in interior furnishings and auxiliary equipment, mainly because, despite being mostly contract builders, they are allowed some freedom to decide on the furnishings and equipment.

So Far So GoodSome achievements have been made. Members have jointly developed innovative yacht equipment featuring electromechanical integration for better interoperability. One notable example of synergy is the touch-operated gas stove, which has a sensor and electric control system, together with a pilot flame under the cook-top, to light gas as done in an electric grill. The design helps to keep flames windproof, a feature that enhances yachting life, said Tsai.

Another example is the hydraulic boarding ladder that can be integrated into central control systems. Tsai emphasized that the device calls for precision casting, electric control and system integration technologies, for it must assure user safety and functional reliability when cruising.

One-stop service
After a year of hard work, Tsai said the members increasingly believe that the alliance can satisfy customers with overall yacht furnishing solutions and one-stop maintenance services, a business model which Aritex, the largest yacht hardware supplier in the Asia Pacific, came up with a few years ago, and now given a chance to prove its viability right after the new alliance was formed.

Backed by synergy, Aritex is enabled to develop more niche products to expand its product range to include not only traditional yacht hardware and parts but also electric controls, interoperable equipment, all of which can be provided via one-stop service focusing on yacht furnishing. This is a practical, feasible way for Taiwan's yacht and yacht hardware makers to go upmarket, said Tsai.

“The reason why the MIRDC invited a yacht builder to the alliance is because we need to make sure solutions can be fitted to yachts to enhance added-value for both hardware suppliers and yacht builders,” said Tsai. “From another perspective, one-stop furnishing solutions provided by a single supplier also facilitate warranty and maintenance services, hence increasing potential yacht owners to buy from Taiwan.”

This business is challenging for most Taiwanese makers, because it calls for a sound supply chain and well-managed logistics that are unfortunately beyond most in the sector. Therefore, the MIRDC will also step up developing a platform to allow members to effectively monitor and share inventories, which allows product tracking to provide customers with timely, satisfactory maintenance services and problem-solving. Product tracking is key to success for most yacht hardware is custom made, so to easily trace a part to its maker is critical to effective part replacement, said Tsai.

Actually every Taiwanese manufacturer has R&D capability but without well-integrated momentum, which the MIRDC will try to coordinate in the alliance to leverage the industry's capabilities and image in the global market, said Tsai.

Technology Improvements Achieved by MIRDC and Taiwanese Yacht Hardware Makers in 2007
Subject	Achievements
Duplex Stainless Steel Melt-Casting Technology	l Reduced number of pores on surface of duplex stainless steel melt-casting to below 3 from 10- and-above over 100-square-centimeters l Lowered processing cost to only NT$9,000 per piece from NT$15,000
Lightweight Aluminum Foam Plate Processing Technology	l Reduced weight of aluminum foam plate by 60% l Provided extra alternative to foam composites for aluminum-made accessories
Stainless Steel Tube and Pipe Hydro-forming Technology	l Achieved production efficiency with reduced processes l Lowered processing cost to only NT$7,000 per set from NT$10,000
Erosion-resistant Surface Treatment and Planarizat	l Enhanced surface treatment efficiency by coating l Achieved SUS304+ standard-compliant erosion resistance and 60% material efficiency
Applications of Analytic Tools for Development of High-holding-capacity Anchors	l Enabled companies to independently develop middle-to-high-end anchors approved by classification societies for higher margins
Positive-motion Technology for Automatic Doors of Yachts	l Worked out safety proof designs and circuit breaker for power overload for automatic doors in motion l Bolstered development of automatic doors in the yacht building industry

Source: MIRDC