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THERE are many metalworking manufacturing centers in the world and Indonesia is one of these core centers. Frost & Sullivan is optimistic regarding Indonesia's cutting tools and machine tools market due to the individual growth of the mining, power generation, automobile, aerospace & defense industry.
Frost & Sullivan consultant Mr. K Vinod Cartic predicts machine tools and cutting tools market in the Asia Pacific to grow 9.1% at a Compound Annual Growth Rate, reaching revenues worth of US$6.36 billion in the year 2017.
As the labor cost and other manufacturing-related expenses in China rise these days, more and more international manufacturers’ especially automotive manufacturers move their factories to Indonesia. The country is an attractive place in which to do business in for many. It has a high population, strong power consumption, excellent labor quality, and an emerging middle class.
For instance, it is reported[1] that Mitsubishi spent US$600 million investment in its latest Indonesia plant and new car development, because the company recognizes that taking a lead in one of the most populous nations is beneficial to the company's permanent growth in the world market. Indonesia with around 240 million population, is recognized as Mitsubishi's biggest foreign market now. The new Mitsubishi plant is anticipates to have a capacity of 160,000 per year, and the number may be expanded to 240,000 vehicles in the future. The company aims to lift its Indonesian market share to 13% from 8% now and expects its Indonesia plant to become the second largest production base in Southeast Asia. Besides Mitsubishi, other well known automotive makers[2] such as Toyota, GM, Ford, Tata and many others are trying to enter Indonesia’s automotive hub, after their investment in Thailand. Many of them foresees huge amount of investment projects and high annual outputs enough to make Indonesia a shining star in the automotive sector, encouraging supply chain from up to down streams to step into this area. Besides, motorcycle companies such as YAMAHA[3] and Triumph have considered Indonesia for further expansions. YAMAHA has set local manufacturing centers to produce R25 sport bikes while Triumph[4] exports motorcycles into Indonesia and is planning to extend more local service centers for domestic consumers.
Indonesia has the advantages of a large labor force, abundant natural resources and modern infrastructure, which are great transportation business opportunities for the automotive[5] and motorcycle sectors and hence targeted by many manufacturers.
As a result, the government is improving its manufacturing environment and regulations in order to attract more foreign investments. These foreign manufacturers, while set plants in Indonesia, consume machine tools for their processing, and it is reported that machine tools imported by Indonesian automotive sector contributes 45% of the nation's overall machine tool imports and the primary exporting countries are Japan and China.
On December 3, 2014, the Manufacturing Indonesia series (including Machine Tool Indonesia, Industrial Automation & Logistics Indonesia, and Tools & Hardware Indonesia) had its successful opening in Jakarta. The show covered 34,387m² and attracted exhibitors from over 30 nations, including Germany, Japan, China, Korea, Singapore, Thailand, UK, Turkey, and Taiwan. This time in 2014, the number of Taiwanese exhibitors have increased, showcasing the nation's manufacturing competence.
Taiwan Buyer's Lounge
At the Taiwan Buyer's Lounge, it was shown that domestic and global visitors believe Taiwan can provide accurate and reliable machine tools with better price compared to Japan and German suppliers. Taiwan suppliers offer machines with higher Cost/ Performance ratio, customized design, and before and after services. There were excellent workpieces displayed in the show room, including car lamps, hobs, screw gear transmission parts, high pressure silent rotary pump rotors, brake discs, and many other critical and precision workpieces for the automotive industry that has been adopted widely by international car manufacturers.
HONOR SEIKI promises excellent round workpiece units
For about 30 years, HONOR SEIKI has produced accurate vertical CNC lathes for global buyers. The company is able to help customers from end to end, that includes developing, designing, manufacturing, assembling, testing, and TURNKEY solutions. At present, HONOR SEIKI offers its main products ranging from CNC vertical lathes, CNC vertical turning centers, CNC vertical grinding machines, CNC planar turning/ milling/ grinding centers, and CNC horizontal lathes.
At the company, the company showcased manufacturing services for the automotive and motorcycle sectors. Sales Manager Nick Lin explained, the VL-46A and VL-46AS series are widely adopted by Toyota, Honda, Fiat, and VW worldwide in different global manufacturing sites, offering local demands in various specifications. HONOR SEIKI goes directly to these companies and their core supply chains, assisting them in the production of precision brakes and other automotive components. Mr. Lin said that HONOR SEIKI assists automotive manufacturers in production line automation, minimizing the labor demands, hence making the best use of machines and resources in the plants. For the motorcycle sector, the VL-500W series helps in processing aluminum wheels in a skilled manner.
In the Southeast Asian region, the company works closely with Tongtai, which has service spots in Malaysia, Thailand, Vietnam, and Indonesia, to promote their business in the region. Together with Tongtai machines, HONOR SEIKI provides excellent processing solutions for customers in the automotive and motorcycle component sectors, and will march further into the emerging market with optimal solutions customized for local manufacturers.
Luren Precision showcases smart grinding
Gear specialist Luren Precision targets the emerging Indonesian automotive industry with its LUG-3040 CNC universal gear tool grinding machine with combination of DD motor and linear motor. It is equipped with advanced FANUC controller, DD motor for workpiece spindle, build-in motor for grinding spindle, and smart software for multi-functional machining.
Functional options are:
• Hob sharpening function: Spur hob and helical hob
• Shaper cutter sharpening function: Helical shaper cutter
• Standard gear profile grinding function: Spur gear and helical gear
• Shaving cutter sharpening function: Traditional type and plunge type shaving cutter
Luren machine series is widely accepted by well-known companies around the world, such as YAMAHA, Honda, Hyundai WIA, Ford, Gleason, VW, ŠKODA, and many other famous manufactures. The applications in automotive sector are gears for transmission, and steering system (EPS, Electric Power Steering) and applications in motorcycle sector is also for the transmission.
Founded in 1994, Luren Precision began the production of gear cutting tools. Experiences in gear tool design and manufacturing have pushed Luren to establish three main units, such as gear cutting tools, gear grinding machines, and spin pumps. The company has four branch offices and 270 employees worldwide, offering Taiwan-spirit industry to the world buyers. During the interview, Deputy General Manager from the President Office Tim T. F. Lin, surrounded by many journalists, pointed out what the company offers and shared the achievements of Luren. Modern high-quality transmission uses high precision gear parts produced by accurate grinding processes. The accuracy of gear profile, lead, pitch and round-out directly affect the efficiency and noise effect of the transmission mechanism. Luren Precision develops smart software and utilizes latest CNC control technology on its machines, such as torque motor and linear motor, to achieve the highest precision gear grinding. In most case, using Luren grinding machines can easily achieve DIN4 quality. The LUG-3040 CNC Universal Gear Tool Grinding Machine is an all-in-one gear tool sharpening machine which integrates sharpening functions of hob, shaper, and shaving cutters in one single unit. It is also a high precision gear profile grinding machine with the topography analysis of bias control, the LUG-3040 is the first to sharpen shaving cutter by profile grinding.
Sales Manager Nick Lin with workpiece
YCM® stands for Taiwan excellent cutting tool expert
Taiwan high-end metalworking industry had a complete makeover in recent decades. The revamp program, named M-TEAM, is led by government founded Corporate Synergy Development Center (CSD) and was supported by many core members of Taiwan’s machine tool league. Yeong Chin Machinery, known as YCM®, played an essential role in making the program happen. Taiwan M-TEAM gathers all the most competitive manufacturers in the domestic metalworking sector and strive to perfect their efficiency in the global platform, achieving win-win goals through collaboration systems. With CSD’s acquired approaches like TPS and TPM, M-TEAM members have successfully cut their delivery time, reduce inventory, and lower labor cost. These accomplishments were supported greatly by YCM® and serves as good display to foreign manufacturers.
This time in the Manufacturing Indonesia 2014, YCM® promotes its NXV-1020A milling machine to the Indonesian market. Randi Tsai, Sales Engineer of International Sales Department stated during interview that YCM® machines are good for processing automotive components. The NXV-1020Ais suitable for consumers in the local market. The machine can process fly wheels, and if worked together with GT turning machine, can further process valves, pumps, yoke sleeves, and yoke tubes.
In the Indonesian market, well known customers of YCM® include IGP Group. YCM® assists IGP Group in developing different production lines and offer turnkey solution to the company. Speaking of production line turnkey project, Ms. Tsai proudly shared that, as YCM® has its complete range of machine tools, like vertical machining centers, double column vertical machining centers, horizontal machining centers, and CNC turning centers, hence YCM® is able to support various turnkey projects. YCM® Indonesian agent, ASP has service locations in Jakarta, Surabaya, and other places to help customers. Through its partnership with ASP, YCM® have sold over 300 machine tools in the local area.
YCM® in-house made spindles
A stable spindle ensures machine tool durability. Manufacturers metaphorically stated that spindles are the heart of machine tools. YCM® fully agrees with this idea. In the YCM® spindle center, advanced technicians develop and operators produce YCM® spindles just like a professional spindle company. The only difference is that YCM® spindles are for YCM® machine tools only and not for sale.
The company makes special spindles with advanced functions. In regard to conical degree specifications, #50spindles can reach the maximal value 15,000 rpm, and #40 spindles can reach maximal spindle speed at 24,000 rpm, and #30 spindles can reach maximal spindle speed at 40,000 rpm. These high-end YCM® spindles are applied to aluminums, hard materials, micro-finishes, hastelloys, tenacity, high-precision molds, automotive parts, and aerospace parts processing. In order to control the thermal variation and spindle’s thermal problems during processing, YCM® uses spindle axial cooling mechanism for spindle cooling and excellent performance. For example, a #40/24Krpm spindle, when its rpm reaches 24,000 rpm, the thermal variation can be used within 5 um in five minutes.
Randi Tsai gave a lecture during the show
Tongtai well-positioned in the ASEAN market
Located in southern Taiwan and leads the famous machine tool fleet, Tongtai Group was established in 1969 and has been serving the industry worldwide for over 40 years. Tongtai has four direct branches in the ASEAN region that report directly to Taiwan headquarters and response to local demands. Those 4 branches are located in Jakarta, Bangkok, Hanoi, and Kuala Lumpur. All these Tongtai ASEAN stations provide technical support, before and after services, and warehouse function. In order to be localized, the company hires native employees and train them back in Taiwan. Also, Taiwanese are dispatched to the ASEAN branches to take care of demands from this emerging market.
In Southeast Asia, Tongtai focuses on automotive, motorcycle, and aerospace industries and provide corresponding machine with high Cost/ Performance ratio. Inside the automotive sector, according to Mr. Sunny Yang, manager of Overseas Sales Dept., Tongtai machine tool products are utilized to process crank axles, engine bodies, transmission parts, suspension systems, brake systems, steering knuckles, and other parts. In this area, Tongtai machine tools are widely sold directly to Honda and Toyota companies and their supply chains. What sets apart the company from other suppliers in ASEAN, Tongtai offers not just one machine designed for processing, but a series of production engineering services, backed up by various machine types. This leading advantages make the company so distinguished and that is why the company successfully established 4 direct branches in the market.
At the show, the company promotes its machine tools with auto loader and un-loader, demonstrating higher C/P ratio with automation technology that is expected to lower manufacturers' expenses and increase efficiency in a large scale.
Sunny Yang, Manager of Overseas Sales Department
VICTOR Taichung enhances manufacturing quality
Victor Taichung has its direct branch in Indonesia, named PT. Victor Machinery Indonesia. The company is so well known in Taiwan as it is one of the oldest machine tool brands in the island. For the past six decades, many of the machine tool makers and metalworking manufacturers adopt Victor Taichung equipment for their manufacture, both in metalworking and plastics injection sectors. Victor Taichung is one of the few leaders in the mechanical fields that can produce machine tools and plastics tools at the same time.
At its headquarters in Taiwan, the company produces its own spindles, gears, gear boxes, machining heads, valves, and other essential units, rather than outsourcing to unit component manufacturers. This model makes Victor Taichung so special in the market that all component quality can be well managed in-house. It is said that, Victor Taichung is a successful enterprise in Taiwan that leads the manufacture fashion and enhances manufacturers' overall quality.
At the show, the company presented three product types, namely Vturn-P series, Vcenter-85, and Vturn-560, proved to be the best means to help local manufacturers to achieve market demands. Now the company have 3 direct control offices in Southeast Asia, Malaysia, Thailand, and Indonesia. These three offices are all directly managed by Taiwan headquarters and the response time is instantaneous.
Speaking of the machine applications in the ASEAN market, Sales manager Frank Lin said the company aims at automotive and motorcycle sectors as their focused application fields. In these areas, noted buyers of Victor machines are AISIN, BMC, EXCEL, and other manufacturers. Victor machines help to produce wheels, brake discs, seat trunnion, and case differentials. Favored by many supply chains and offices of Japanese automotive brands, Victor make its own way through the ASEAN market. In the future, Sales Manager Frank Lin said that operations in Jakarta office going well, Victor plans to expand in Surabaya. There are 6 employees inIndonesia,13 inMalaysia, 30 more inThailand, but Victor will increase its investment in Indonesia, the largest market in Southeast Asia.
Sales Manager Frank Lin shared knowledge with visitors
Chin Fong: Serving the press industry for over 65 years
Chin Fong has been working in the field of pressing for over 65 years, helping customers in developing suitable press machines and workpiece researches. Headquartered in the core center of Taiwan’s metalworking supply chain, Taichung, the company has over a thousand professional employees, serving manufacturers with different demands. Customers around the world is over 3,500, including Toyota, Honda, and Ford to name a few. In the trade show, the company introduced hot forging workpieces which are used in the automotive sector as CV joints. Besides, Chin Fong presses are also applied to automotive sheet metals, such as those used for Toyota Camry’s production line. Account Manager of Overseas Sales Dept. Jacky Chen stated that all the outer sheet metal parts can be processed by their machines. In Indonesia, Chin Fong has built its branch and cooperated with local manufacturers.
Being creative is always the value of Chin Fong products. Since its debut 65 years ago, the company keeps its collaboration with leading corporations such as Minster, H&F, Muller Weingarten, IHI, SATO, Yamada Dobby, and other famous companies that lead the trend in their sectors, respectively. Moreover, Chin Fong also utilizes domestic research energy to enhance its in-house technology, thus presses produced by Chin Fong vary in types and are excellent in every detail. The company holds over 140 patents and invention around the world, with most of its products CE certified. In looking forward to the future, Chin Fong is ready to face all the challenges and is determined to step ahead again.
CHIN FONG represents Taiwan press machine elites
Taiwan machines adapt to emerging markets
Unlike its competitors in Japan, China, Korea, Germany, and Italy, Taiwan machine tool sector is not led primarily by its domestic automotive. Some may think that the country lack a huge domestic market to support its industry, but in truth, Taiwan is just like Austria and Switzerland that march into the international platform at the beginning when industry began. Taiwanese machine tool manufacturers are much skilled at offering optimal customized turnkey solutions for international buyers with the highest cost/ performance ratio. In working with Taiwanese machine tool suppliers, there are tens of hundreds of famous international manufacturers in automotive, motorcycle, aerospace, and 3C sectors gain their best profit in manufacture.
Furthermore, the nation is now under a series of automation development projects led by many cutting edge motion control and industrial robot companies such as HIWIN. It is expected that with the advantages of domestic automation technology and mature domestic controller in the near future, Taiwan will be able to offer the best intelligent manufacture solutions to global buyers.
In the upcoming year, the TIMTOS 2015, Asia's best international machine tool show, is going to be held in Taipei, Taiwan. It is expected that there will be over 1,000 exhibitors from 17 nations be in attendance and there are 5,400 booths, which will make maximum use of the available 100,000 square meters of exhibition spaces that spread out over the 4 venues in Taipei.
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