Forging ahead on a strategic alliance with Sumitomo

Open day, preceded by the spectacular launch of Chin Fong Groups new high-quality warm-hot forging press TFPX-1600C that it is authorized to manufacture and sell under the license of Japan's Sumitomo Heavy Industries, was more than just a cause for popping open a bottle of champagne or two on September 16.

"The inquiries are coming in. We feel the recovery and it is going to get a lot better even sooner than we anticipated. 桱ade Chen, Manager, Chin-Fong Global, Sales Department"

It was in fact an event that marked the rebirth and reflected the glory, of a company that not so long ago soothsayers were busy writing off. But like industry in Taiwan itself, Chin Fong, had a way of re-inventing itself, saving the day and shoring up its future. Two years ago, the Chang Hua based company, renowned for the sheer size and complexity of its forging presses, changed its shareholders and its board with a kind of corporate surgical efficiency and went crusading on. It was a revival that could be attributed largely to the dynamic of its main shareholder and current CEO Lu Tai Yang. His entrepreneurial skills and business success in China and back in his native Taiwan as major shareholder in an ATV (all-terrain-vehicle) design and manufacturing company turned around the fortunes of the company. So, along with increased capital investment of US$6 million by the end of 2008, a new board of directors was appointed. A new Chairman, Chiang Yao Chung, with a stellar track record as a director, successively of Taipei's MRT, China Airlines and a subsidiary of China Steel, was appointed on July 1, 2009. Chiang lost no time in announcing that his main goal was to lead the company to an IPO. But, he mandated, there had to be some thorough internal broom sweeping with added luster to the company's brand name. He had a solid corporate foundation to build on, said Jade Chen, the savvy Manager of the Global Sales Department who himself represents the youthful heart and soul of this Goliath among Taiwan machinery makers. For one thing, the instruction and technology input from prominent Japanese manufacturers like Sumitomo. This all led to talks on OEM development in 2004 and the signing of a contract a year later for technology and marketing strategy alliance with Japanese Sumitomo Heavy Industries Techno-For Co. Ltd whose own President/CEO, Mr. Kohei Takase was present to spur his Taiwanese manufacturing partner on. Since manufacturing a machine as advanced and as huge as the FPX1600 is extremely costly said Chen, "our partners looked toward countries like India and Taiwan, with its own advanced industrial sector, for manufacturing and marketing." "We have a marketing contract with our Japanese partners, which mean we manufacture the identical machine in Taiwan, under license and instruction." All in all, he affirms it adds up to a successful combination of Sumitomo's design and technology with Chin Fong's undoubted manufacturing ability. To date the company has already received many enquiries from India, SE China, the Philippines, Thailand and Indonesia. The Gods are smiling on this latest episode in Taiwanese, Japanese cooperation. The last few months have seen some "drastic" reversals in material costs," says Chen, which has helped to lop a hefty 15% off the original machine price and open up more market prospects. "And our customers are feeling well served with the revised price tag," he smiles. A surge in the demand for hi-tech in the forging industry, something that has not gone unnoticed by the company CEO, has given an altogether new meaning to the experimental nature of the new partnership and the machinery and sales it has spawned. "In the past we were strong in cold forging machines but we knew that many cold forging customers were using the machines for warm forging applications,?Chen said. The development of the FPXNIKE AIR HUARACHE