LC Fuel Tank maintains resiliency amid a disrupted global supply chain

LC Fuel Tank is a reputable fuel system maker, providing over 1,500 molding(s), fuel tanks, fuel filler pipes, gas tank straps, fuel sending units, and oil pans for the engine system. The company has acquired the strictest quality certifications for OEM automotive manufacturing and has become one of the world's most competitive fuel tank makers.

As the global pandemic, Ukrainian-Russian war, and material shortages have impacted logistics and raw material prices, General Manager Chan Yu-Peng said LC Fuel Tank had used this opportunity to increase its competitiveness. For instance, the new factory that they had been planning and constructing for several years has been in operation, which sits on a 4,000-ping piece of land in the Xiluo Fu Tian Industry Park in Yunlin County.

Chan led the entire process of setting up the new factory, from the planning in the beginning stages and ensuring the construction was completed in a timely manner. Chan designed new production line equipment into the factory operations capacity to meet market changes and buyer needs, passed certification tests, and entered mass production stages. The new production line has resolved a portion of the company's more urgent orders, Chan says, citing improved capacity and efficiency and better ability to handle regular clients' orders as well in a timely manner.

The new factory has improved production and is also equipped with amenities for employees, such as an employee dormitory, to foster better employee and management trust. Chan says the aim is to treat his employees as if they were his own family, which was widely supported among his workers. In turn, employee morale and productivity have both improved.

LC Fuel Tank is also widely known to have the world's biggest collection and inventory of molds for fuel systems, approximately over 1,500 sets. As these molds are often huge and heavy to move around, Chan says they needed a bigger space to accommodate their sizable collection and eventually decided to purchase a plot of land behind the new factory to set up a storage facility for the molds. With new equipment and facilities, Chan hopes to improve mold exchange times for better production efficiency.

Labor Shortages Heavy on GM's Mind

Similar to many developed countries around the world, Taiwan is on track to experience labor shortages due to a lack of talent and low birth rates. Chan said this is especially so in the manufacturing industry, and the company has plans to work closely with academic institutions to cultivate talents through relevant channels. This will help elevate unemployment rates and unburden the government, as well as offer an opportunity for LC Fuel Tank to train management trainees.

The new factory's upgraded equipment is imported from Japan. Through 3D and 2D laser cutting, these new technologies have helped reduce the time to develop molds and improved their capacity to offer low-volume, high-mix orders. In addition, the newly assembled machinery robotic arms are also now online, introducing semi-automated production at the new factory.

Global Impacts

As a year optimistically touted as a recovery year after two years of setbacks from the COVID-19 pandemic, the material shortages, price hikes, and the Russian invasion of Ukraine has prompted industries to scale back their expectations for a strong economic rebound. For LC Fuel Tank, their shipments in the AM market saw some impact due to the pandemic, Chan said, but he pointed out that their market sales in fuel supply systems for vintage cars had significantly increased instead, which he attributed to WFH trends during the pandemic.

Consumers are more likely and more willing to spend time working on their vehicles and thus injecting high demand for vintage car parts. Chan said that primary market demands are coming from the European and North American regions. He believes the situation as seen from the pandemic shows that their initial investment into the vintage car market was correct. While environmental issues are highly prioritized by governments, consumers, and markets alike, Chan believes that maintaining different market demands and extending the product life span for these vintage vehicles are also crucial.

The company can fully supply the most diverse product line, with products adhering to international certifications and environmental regulations as the most standard requirements.

A More Sustainable Outlook

In terms of product features, LC Fuel Tank's surface treatment for its fuel tanks is based on procuring powdered-coating automated equipment many years ago. The coating's weather resistance property and thickness are reputably three times better than the typical coating. Another feature of the coating technology is less environmentally harmful and pollutive. While the equipment costs are still higher than the standard machinery, LC Fuel Tank believes the initial prices are worth the long-time value the equipment offers. Furthermore, they are worth upholding their commitment to greener choices and prioritizing employee health. These efforts are highly recognized and lauded by international buyers.

LC Fuel Tank exports a 95% majority of its products to overseas markets and has made a name for itself in terms of branding in the international market. Apart from fuel tanks and fuel supply system parts, LC Fuel Tank offers a one-stop fuel solution for customers. For instance, costs for repairing and maintenance of fuel tank systems can end up quite high due to parts coming from different assembly lines, which can also cause issues with warranty claims. LC Fuel Tank believes that clients will benefit from rigorously-certified product quality and products manufactured using specialized equipment through offering a one-stop solution.

The automotive industry is an over-century-old sector. Amid the recent trends and challenges, LC Fuel Tank will continue to innovate to keep up with the changing times.

LC FUEL TANK MANUFACTURE CO.

NO. 251,Yungshe RD., Yungjing Township, Changhua County 51243, Taiwan

Tel: 886-4-822-3253

Fax: 886-4-823-2342

E-mail: lesley@fueltank.com.tw

Website: www.fueltank.com.tw, www.cens.com/fueltank