Hsiang Lun Wins ISO-14001 Badge

Oct 05, 2004 Ι Supplier News Ι Auto Parts and Accessories Ι By Quincy, CENS
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Anthony Chen, Hsiang Lun`s marketing manager and a self-proclaimed "second-generation entrepreneur."

Hsiang Lun International Corp., one of Taiwan's top three combustion-engine gasket and repair kit makers, as well as the island!|s most comprehensive supplier of total solutions for engine overhauls, recently won ISO-14001 certification. It is the only local producer in its sector to earn the coveted environment-friendly badge.

Anthony Chen, marketing manager of Hsiang Lun, claims that the certification shows his company's concerns for protection of the environment and strong determination to be the "best" in its class in every way, ranging from product quality, price, and competitiveness to quality management, R&D capability, and environmentally sound production. The company took a step forward in this last measure by phasing out production of asbestos engine gaskets in 2004.

Hsiang Lun is also expected to be soon certified under the 2002 version of the TS-16949 standard, likely in 2005. According to Chen, most of the TS16949-approved companies in Taiwan are certified under the 1994 version.

Big Basket of Gaskets

After careful preparation and evaluation in the past few years, Hsiang Lun launched a series of intensive development projects to expand its line of gaskets for American car models. According to Chen, his company aims to supply gaskets for all American car models produced after 1985. Most of the new models are advanced multi-layer steel (MLS) gaskets made of functional composite materials to improve durability and sealing performance.

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

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

Established in 1969, Hsiang Lun has restructured over the past five years to compete better in the global aftermarket. The company has also earned ISO-9001 (2000 version) and QS-9000 certifications to strengthen its position in overseas markets.

Chen claims that Hsiang Lun is the most comprehensive supplier of AM automobile-engine gaskets in Taiwan, and, he states, 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.

Chen says that his 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-material) 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, he says.

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

The manager notes that while it is difficult to achieve both high quality and low cost, Hsiang Lun has succeeded in pulling off this feat. He also claims that the company has greatly reduced delivery times, speeded up development, and streamlined its work force.

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

The company reports that it is the only local gasket maker to set up 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," Chen explains. "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 shorting its delivery time to as little as 21 days. This rapid-response capability, of course, allows customers to reduce their inventory to a minimum. For more conventional suppliers, delivery period might takes up to four months.

Longest Guarantee

Hsiang Lun is constantly developing new materials and production techniques to improve the functions and quality of its gaskets. As a result, the company 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 AM parts brands, many of which have chosen the Taiwan manufacturer as their sole supplier of AM 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.

Hsiang Lun's strong trading department complements the company's outstanding manufacturing capability. The department 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.

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

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