The Hsiang Lun International Corp., one of Taiwan's top three makers of combustion-engine gasket and repair kits as well as the island' s most comprehensive supplier of total solutions for engine overhauls, says that it will soon complete construction of a new Automated Storage & Retrieval System (ASRS) as part of its ambitious capacity expansion project.

The new ASRS is expected to speed up Hsiang Lun's delivery and enable the company to handle 50% more items at the same time. Hsiang Lun is the only local gasket maker to already have an aerospace-grade computer-aided materials ASRS, which handles over 40, 000 stock items and greatly enhances production flexibility.

Hsiang Lun is also installing a production line at a new plant next to the company's existing facility in northern Taiwan's Taoyuan County. The new production line will boost capacity by 40% to 50% worldwide.
The company won ISO-14001 certification last year, the first (and so far only) local gasket maker in its class to earn the coveted environmental-protection mark. Marketing manager Anthony Chen claims that the certification shows his company's concern for environmental protection and strong determination to be the best in its class in every way--from quality, price, and competitiveness to management, R&D capability, and environmentally sound production.

Already certified by most key quality standards in the automotive line, including ISO 9001: 2000, WS 9000, and now ISO 14001, Hsiang Lun is also preparing to be certified under the latest version of the TS-16949 standard by the end of the year. According to Chen, most of the TS16949-approved companies in Taiwan were certified under the 1994 version rather than the latest one, which was published in 2002.

Most Comprehensive Supplier

After careful preparation and evaluation, Hsiang Lun has launched a series of intensive development projects to expand its line of gaskets for American cars—for all of them produced after 1985, in fact. Most of the new models will be advanced multi-layer steel (MLS) gaskets made of functional composite materials to improve durability and sealing performance.

In addition, Hsiang Lun has begun developing various kinds of new composite materials that combine steel, plastic, and rubber. Chen claims that the new materials result in more durable engine gaskets and expand the choices that Hsiang Lun can offer its customers.

More and more big international aftermarket (AM) parts suppliers, Chen reports, are seeking cooperative ties with his company thanks to its know-how, experience in MLS gasket tooling and manufacturing, and wide product line."

Chen claims that Hsiang Lun, which was established in 1969, is the most comprehensive supplier of AM automobile engine gaskets in Taiwan, and maybe even in the whole world. The company's gaskets can be used on 98% of all Japanese car and light truck engines up to 5, 000cc in size (up to the 2003 model year); over 75% of all Japanese truck and bus engines over 5, 000cc; about 85% of all Korean car engines; and a growing percentage of European and American car and truck engines. The company is also the Taiwanese manufacturer with the widest range of engine gaskets for agricultural machines, boats, generators, motorcycles, and recreational vehicles such as snowmobiles and jet skis.

According to the marketing manager, the company pours about US$1 million into the development of 30 to 40 new gasket models a year. It is also developing advanced gaskets with integrated electronic sensors for use on new cars.

Hsiang Lun's product line covers all non-asbestos (industrial paper) gaskets, graphite gaskets, and the latest MLS gaskets.

OE Quality

According to Chen, Hsiang Lun makes every effort necessary to ensure that its products fully meet the specifications and quality requirements of original equipment (OE) parts. To that end, Hsiang Lun uses the same materials as those used by OE gasket makers and does all production in-house. The company also runs the most comprehensive gasket quality laboratory in Taiwan, the marketing manager says

"By doing all our production in house, we can ensure that even the tiniest parts fully meet OE standards, " comments Chen. "Companies that outsource products and then assemble them cannot match our level of quality."

While it is difficult to achieve both high quality and low cost, Chen asserts that Hsiang Lun has succeeded in pulling it off. He also reports that the company has greatly reduced delivery times, speeded up development, and streamlined its work force.

Chen says that a comprehensive upgrading of management, materials inventory, and manufacturing systems has left his company with unmatched competitiveness in small-batch, large-variety production. "Few makers anywhere in the world are as flexible and efficient as we are, " he says. "For example, we can accept orders for as few as 100 gaskets and deliver them within 30 days."

Another of the company' s claims is that it is the only local gasket maker in Taiwan to have an aerospace-grade computer-aided materials inventory pick-and-store system, which handles over 40, 000 stock items and greatly enhances production flexibility. "This flexibility is essential for gasket makers now, " the marketing manager says. "As more and more customers have reduced their inventories to free up capital, the number of urgent orders has greatly increased."

Hsiang Lun has also greatly reduced its operating costs by downsizing its work force to about 80, while shortening its delivery time to as little as 21 days. This rapid-response capability allows customers to cut their inventories to a minimum. For more conventional suppliers, delivery might take up to four months.

Longest Guarantee

Thanks to constant improvement of materials and production processes, Hsiang Lun can offer a 15, 000-mile guarantee on its products--making it an industry leader by this measure, according to Chen.

These advantages have helped Hsiang Lun to establish and maintain long-term partnerships with leading international aftermarket (AM) parts brands, many of which have chosen the Taiwan manufacturer as their sole supplier of gasket and repair kits for Japanese and Korean cars. More and more brands are also relying on it to supply parts for European and American car models.

In addition to its admirable manufacturing capability, the company also has a strong trading department which plays an important role in sourcing other top-quality Taiwan-made engine parts for major European and American AM brands, especially those that supply parts for Japanese cars.

The firm's engine-parts supply business has expanded rapidly in recent years, attracting more and more one-stop shoppers who are looking for reliable parts.

"We are getting stronger and stronger, " Chen says. "We are winning more and more foreign orders because we can beat our Japanese counterparts on price and our mainland Chinese rivals on quality."

Over the past 35 years Hsiang Lun has evolved from an engine gasket maker into one of the world's strongest total-solution providers of combustion engine overhaul parts. A small portion of these items are sold under the company's Takoma brand, while most orders are shipped on original design manufacturing (ODM) terms to international heavyweights in the AM parts business.