Furniture Hardware Taiwan Fastens On to High End of Market

Synthesizing decades of experience and a strong spirit of innovation, Taiwan's furniture parts and hardware industry has steadily grown and maintained its edge in the international market despite growing competitive pressures.

Domestic manufacturers in this line also attribute their success to the support of well-established peripheral industries, including providers of electroplating, steel-pipe processing, and iron/steel cutting and shearing services. An ample supply of high-quality raw materials from well-established integrated steel mills, as well as a steady inflow of new producers with innovative ideas, has also positioned local makers for success.

One veteran of the furniture-hardware manufacturing sector estimates that world demand for high-end furniture parts and hardware will continue to grow as downstream applications, such as multifunctional and easy-installation furniture, are expanded.

In terms of production value, the biggest segments of the furniture parts and hardware industry in Taiwan are, in descending order, hinges, drawer slides, knobs and pulls, knock-down fittings and fasteners, casters, glides, locks and latches, and functional and decorative components for tables and chairs. These rankings are based on a survey conducted by an experienced local manufacturer in the field.


Long-Term Expertise


One of the oldest companies in the local furniture-hardware business is Kuan Yu Enterprise Co., Ltd., established three decades ago. Kuan Yu makes standard and specialty hardware items for a variety of furniture items. The company has accumulated much expertise in designing and producing cutting-edge hardware used in wooden furniture.

Based in Changhua, central Taiwan, the company has recently focused on improving its products by adopting special structural designs.

"With the aggregation of manufacturers specializing in surface treatment and iron shearing, central Taiwan is an ideal place to locate a metal parts plant, " says Huang Ching-shu, president of the company. "That's why we haven't relocated our factory to mainland China."

Kuan Yu can roll out over a hundred different types of hinge made of stainless steel, pig iron and copper, though items of the last two materials dominate in its total output.

Kuan Yu also makes specialized furniture hardware to distinguish its product lines from the offerings of its competitors. "For instance, we can design special structures for commonly used hinges to enhance their functions, " says Huang.

The company says its products can be used on a variety of furniture items, from cupboards to trash cans. Half of the company's output is exported around the world.

Many of Kuan Yu's older products are patented in Taiwan, but recently the company has shifted to a strategy of speedy product development to stay ahead of competitors, says Huang.

The company has enjoyed double-digit revenue growth over each of the past five years--an achievement that Huang attributes to the company's dedication to product development. The company expects to make outstanding sales performance this year because the world demand for furniture hardware is increasing.


Insert Nuts


Younturn Hardware Corp. is an experienced supplier of high-end nuts and bolts for wood and metal furniture.

Insert nuts are the company's most sophisticated and best-selling item. The nuts are made on specially designed machines and come in five types of various sizes. They are especially designed for use jointing systems on ready-to-assemble furniture, says M.H. Deng, president of the company.

According to Deng, quality is a major focus at Younturn. "We employ stringent quality-control procedure and inspection system to ensure that our products can meet the requirements of the high-end market, " he says.

As many domestic manufacturers of general-use bolts and nuts have moved production facilities overseas to reduce production costs, Deng says his company is committed to producing high-end items in Taiwan.

Insert nuts fit into this strategy due to the difficulty of their manufacture. "Insert nuts have to be inserted at a 90-degree angle, " says Deng. "So the processing of the inner thread of the nuts is the most important factor in the entire production process. To ensure the accuracy of the insert nuts, we use the specially design tapping machines."

Today, Younturn has about 30 CNC (computerized numerically controlled) tapping machines to standardize production. "With these machines we can tightly control the quality of our products and achieve zero-defect output, " Deng says.

With the help of automation, Deng's company can turn out 60 million insert nuts a month--double the number only five years ago.

Younturn's insert nuts are priced much higher than those made by domestic and mainland Chinese rivals. They are threefold to fivefold the price of mainland insert nuts, and double the price of domestically made one, Deng says. "Despite the high price, we have been very successful in Europe and Japan, where quality and reliability demands are high."

Currently about 80% of the company's output is sold to Europe and Japan. "In the past, the U.S. was our largest export outlet, but our presence in the U.S. has been shrinking for a few years, especially since the 1997 Asian financial crisis, " Deng says. "One of our U.S. customers demanded that we match mainland producers on price. But of course we couldn't provide high-end products at such low prices. So we gradually retreated from the U.S. market. Recently, a number of U.S. customers have told me that they are considering resuming business ties with us."

In addition to insert nuts, the company supplies joint connector bolts, combination screws, cap nuts, cross dowels, connector fittings, and nylon twin wheel castors.

To ensure the quality of its products, Younturn uses product molds made of zinc-alloy steel imported from Australia, which offers higher torque than other metals, Deng says. The company has developed 30 molds to date, each at a cost of over NT$200, 000 (US$6, 300).

To meet the demand of the fast-changing global K/D furniture industry, the company has spared no efforts to develop innovative products that can lure new customers and retain old business partners. "We are now making a new mold for an innovative nut that will hit the market sometime in the third quarter of this year, " Deng says.


Caster Screws



Maing Yion Industry Co., Ltd., established in 1984 in central Taiwan, makes caster screws and specialty screws, such as grip neck stems and threaded stems for officer chairs and other furniture items.

The company claims to be one of Taiwan's most professional manufacturers of furniture caster screws thanks to its long-term R&D commitment.

Maing Yion has been ISO-9001:2000 certified, attesting to its high quality standards, achieved in part by the company's highly integrated operations.

The company can turn out a wide range of specialized caster screws, including items developed according to customer designs. The company's R&D team consists of 15 experienced specialists.

The company's output is currently divided between items for export and domestic sale. The company expects revenues to rise over the next few years because demand for casters by domestic manufacturers of OA chairs is increasing.


Big Selection



OHLA Plastics Tool Co., Ltd. Supplies a wide range of plastic parts, metal parts, and accessories for furniture--over 1, 000 models in all. The company hopes to develop new items through original equipment manufacturer (OEM) partnerships with overseas partners.

Founded in central Taiwan in 1989, OHLA handles most of its business in-house, from design, development, testing, and inspection to manufacture, assembly, packaging and delivery.

Some seven years ago the company moved into a new 90, 000-square-foot plant.

The company's biggest challenge recently has been coping with the rising cost of plastics, iron and steel. Company president Chiang Ching-Shih says that he is not able to pass the higher costs onto buyers due to the intensely competitive business climate. Instead, OHLA has been making an all-out effort to pare costs by streamlining production processes. "If the price of raw materials doesn't go up drastically in the near future, I believe we will be able to smoothly weather this tough time, " he says.

"We focus on high-end products to distinguish our products from others, " says Chiang. "This is possible because we have gained a good reputation in the domestic furniture industry over the past two decades. Many of our customers have been buying from us for over 15 years."

Chiang says he has over three decades of experience in developing plastic and metal parts and accessories. This, he says, has helped him develop high-end items to meet the demand of customers in the global furniture industry.

Chiang says his company can help customers choose the right materials for their needed products so as to reduce procurement costs. "Some customers are used to using some specific materials that are priced high, " says Chiang. "But I know how to help them reduce the costs by using cheaper materials without sacrificing quality."

His company has also distinguished itself from mainland China-based producers by shying away from low-end mass produced items. Chiang acknowledges that his company cannot match mainland prices in the mass market, so he has decided to pin OHLA's international competitiveness on product innovation.

Plastic injection molding parts and iron-pipe screws for DIY furniture items are two of OHLA's major product categories. Other major products include casters for office chairs. Most of the company's casters are exported.

The company has been able to focus on high-end metal parts due to the strong support of domestic providers of surface treatment services. "We have dealt with domestic providers of surface treatment services for a long period of time, " says Chiang. "That's why we can keep quality high and costs low."