R&D Union Formed in Taiwan to Tap Hydro-Forming Auto Parts

Taipei, Oct. 18, 2005 (CENS)--Taiwan's domestic manufacturers of steel products and automobile parts, including China Steel Corp. (CSC), Mayer Steel Pipe Corp., William Precision Industrial Co. and Kian Shen Corp., recently formed a research and development union in association with the government-backed Metal Industries Research and Development Centre (MIRDC) to tap the fledging market for hydro-forming automotive parts.

Kian Shen, one of Taiwan's leading listed manufacturers of automobile frame assemblies, noted its cooperation with CSC and Mayer would help it boost prospective sales by helping the company expand into the production of hydro-formed automotive parts. Kian Shen said it posted NT$1.232 billion (US$37.1 million at US$1:NT$33.2) in cumulative sales in the first nine months of this year, representing an annual increase of 6.27%.

Some others steel-product makers such as Merida Industry Co., Fairing Industrial Inc., and Shuz Tung Machinery Industrial Co. have also expressed their strong interest in acquiring the hydro-forming technologies. They will join a MIRDC-led visiting group to attend an international symposium focused on hydro-forming technology to be held in South Korea on Nov. 10 and 11. During their stay in South Korea, they will call on Hyundai Group and some well-known steel mills to look into the practical applications of hydro-forming parts.

MIRDC said that vehicle manufacturers worldwide have been trying to use lighter materials to reduce the weight of their products. Employed for the processing of hollow metal components, the advanced hydro-forming technology is expected to replace the conventional technologies of stamping, welding and die-casting steel in the next few years. The advanced technology will also help manufacturers reduce production costs by at least one-third.

Hydro-forming technology is suitable for the manufacture of bicycles, motorcycles, and sanitary and bathroom hardware. According to tests made by Japan's Toyota Motor Co., vehicles with hollow structures made by the technology are safer than those with components made by conventional stamping and welding technologies. The technology can help substantially reduce the weight and volume of automobile parts, and also cut the costs in mold making.

At present automobile manufacturers in Europe, the U.S., Japan and South Korea have applied the hydro-forming technologies to the production of automobile parts. Some world-renowned auto manufacturers, including BMW, Mercedes-Benz, Ford, Toyota, Honda, Nissan, Hyundai, and KIA, have introduced hydro-forming technology to produce frames, body parts, structural parts, and exhaust systems.

MIRDC manager Cheng Ping-kuo said hydro-forming technology has become a mainstay in the automobile manufacturing sector and its applications in such sectors as motorcycle, bicycle, sanitary and bathroom equipment, and pipe fitting are also increasing. He called for relevant domestic firms to adopt the advanced technology as soon as possible because inquiries from overseas companies have been rising over the past few years.

Cheng said members of the R&D union would comprise up-, middle- and downstream firms, so that an emerging community for innovation, R&D and applications in hydro-forming technology can be set up.