Gao Ming Tie Expands Services To Electronics and Automation Industries

Gao Ming Tie Enterprises Co. has been striving for years to provide better services to the global electronics and automation industries by expanding its business scope and developing more in-house specialists.

The firm's business scope currently encompasses computerized numerically controlled (CNC) milling, 2D and 3D processing, the processing of electronic parts and fixtures, and automated machinery processing; the production of precision die sets, guide posts, and bushings, as well as stamping and die parts; and the supply of machinery parts.

When the company was set up in the central Taiwan city of Changhua in 1994 with an initial capitalization of NT$5 million (US$147,000 at NT$34:US$1), it concentrated on trading in punching molds and machinery hardware. In its early years Gao Ming Tie had only five workers and annual sales of NT$6 million (US$176,000); since then it has expanded steadily, and last year its sales broke the NT$100 million (US$2.94 million) mark.

"We've been keeping pace with the development of the punching industry by constantly installing state-of-the-art production equipment," comments Tony Chen, the firm's general manager. "Thanks to our long-term efforts to help our customers find the right punching molds and machinery parts, we've accumulated valuable expertise in the development of precision molds and machinery hardware. A few years ago, we expanded into production in order to better serve our customers with competitive products at reasonable prices."

To accommodate its growing business, in May 2003 the company moved into a new factory with a floor space of 3,134 square meters in Hsiushui, Changhua County, where it has installed new production equipment as well as inspection and testing devices. This gives it the capability to develop more sophisticated products.

Expanding Business Scope

The recent expansion has also enabled the company to expand into metal-injection molding and the procurement and sale of parts and components for automated machinery, and to become a sales agent for branded springs used for die sets.

The company now plans further expansion into such high-margin products as processed parts for semiconductor-production equipment, and to that end is engaged in talks with the Chung Shan Institute of Science and Technology about a three-year development project focusing on key technology for precision mechanical systems.

To escape the saturated market in the Changhua area and bring its services to the rest of Taiwan, the company has set up three new domestic branches: in Taoyuan County, northern Taiwan; Hsinchuang, Taipei County, also in the north; and Kaohsiung County, in the southern part of the island.

The development of overseas sales began in early 2003 and the company has already established market footholds in Australia, South Korea, Singapore, Switzerland, Malaysia, and Hong Kong. It is now looking for agents all over the world.

"Our products have won a warm welcome in the industrialized nations," Chen says proudly. "Besides maintaining a firm position in the area of electronic-parts processing, we're working hard to develop sophisticated die sets to fill the growing demand from manufacturers of TFT-LCD (thin film transistor-liquid crystal display) panels."

Gao Ming Tie also helps customers make proper use of appropriate products to improve their production. For instance, it uses aluminum alloy with anodizing treatment to make die sets for ordinary parts-punching machines; these dies feature light weight, superior hardness, and high strength, which helps them alleviate the problem of inertia which punching machines develop after long periods of high-speed operation.

Hot Products

Among the company's hottest-selling products are die sets, guide posts and bushings, punches, and ball retainers, all of which can be made to customer specifications. The guide posts and bushings are made 100% in-house, and are subject to strict quality controls.

Gao Ming Tie's ball retainers are available in three types. The standard models, AMS and POM, are for use with medium-to-low linear displacements and produce very little friction during mechanical operations such as punching. The dense models, AMSH and POMH, are designed for medium-to-high linear displacements with heavy-duty workloads imposed during such operations as snapping and high-speed punching. The highly dense models, AMSD and POMD, are for high linear displacements and heavy-duty work involving super-high speed heavy-duty punching. These models are impact-proof and durable in long-term operations.

The company is now mulling expansion into the mainland Chinese market in the expectation of continuous rapid growth there. It will initially set up an outlet in Jiangsu Province, in either Shanghai or Kuanshan, in mid-2005.

The general manager expects his sales to soar to NT$148 million (US$4.35 million) in 2003, a 40% growth from the 2002 sales record of NT$104.8 million (US$3.82 million).

Chen says that his company has long stressed the development of specialists and the acquisition of advanced technology: "Our growth over the past several years has been attained by the used of advanced manufacturing technology. To maintain our advantage, we've not only installed a lot of sophisticated production equipment but have also developed many experts in-house in recent years."

At the beginning of 2003 Gao Ming Tie entered into a cooperative arrangement with a Changhua vocational school in order to develop even more experts through the combination of academic theory with actual production skills.