The year 2012 has not been the same for all of Taiwan`s plastic extrusion machine suppliers.During this period of global economic uncertainty,some suppliers have had an increase in contract orders while others have seen a decline in customer demand.
Among those plastic extrusion machinery suppliers that have grown so far this year is Leader Extrusion Machinery Ind.Co.,Ltd.,one of the leading suppliers in the line with over 20 years of experience under its belt.
With its headquarters in Taichung City in central Taiwan,the company`s products are comparable to those made in Germany and Japan in terms of performance and quality and are also more affordable.Therefore,customers from different sectors of the industry worldwide have sought out these products.
The company`s products include plastic extruders,extrusion machines,plastic machines,PP hollow profile extrusion machines,PC&ABS co-extrusion machines,optical sheet extrusion lines,PMMA&PC sheet co-extrusion machines,A-PET&PET-G sheet co-extrusion lines,PP corrugated sheet extrusion machines,CPP film extrusion machines,PET film co-extrusion machines,TPU film co-extrusion machines and PET or PVC shrinkable film extrusion lines.
In contrast to most of his peers that have been frustrated with business downturns,Leader President Johnson Hsu said that in comparison to 2011 his company has grown strongly so far this year.A major factor in this growth has been the orders from both local customers and foreign ones in South Korea,Japan,India and Brazil.
Hsu said that his company`s current prosperity is due mainly to its product diversification into optical sheet making machines for 3C(computer,communication and consumer electronic)device manufacturing.He also said that its years of dedicated work in these fields has helped it become the only Taiwanese traditional machinery maker capable of supplying high-end machines that are comparable to those of its substantial competitors in Japan and Europe in terms of quality and functionality.
According to Hsu,in addition to 50%lower prices than those of its main competitors,Leader`s growth so far this year has been due to what it provides customers:more efficient services that effectively leverage the competitive advantages of its optical sheet manufacturing machines over competing models made in Japan and Europe.
Poor Outlook for the Second Half of the Year
Both the increasingly uncertain global economy and unclear market demands have cast doubt on Leader`s business outlook for the second half of the year,Hsu said.Another decisive factor is the interest rate fluctuations in India and Brazil,its major export markets,which have caused customers in these countries to hold back new orders.
Based on its belief that moving forward and R&D are the keys to success in the market,Leader`s R&D staffers are focusing on developing new machines and problem-solving solutions to weather the uncertain global economic situation in the second half of the year,Hsu said.
Hsu also said that the company plans on increasing vertical and horizontal integrations of business operations from human resources to manufacturing,quality control,R&D and customer service that improves operating efficiency.
"While we develop machines for high-tech industries,Leader will also try to increase its technology exchanges with Japanese and European companies to boost its presence and brand recognition,"Hsu said."We want to become a top global supplier and avoid price competitions both with our Taiwanese peers and emerging rivals from China."
The Not So Fortunate
In contrast to Leader,Poly Machinery Works Co.,Ltd.,has seen orders for its plastic extrusion machines and lines shrink so far this year,according to company President Chang Jin-chiu.
Poly Machinery was founded in 1969 in Taipei in northern Taiwan,and has concentrated on designing and manufacturing EPS(expandable polystyrene)and EPE(expandable polyethylene)product manufacturing machines for over 40 years.Chang said the company is Taiwan`s first developer of foam material and related machines.
The company`s product portfolio encompasses a wide range of plastic extrusion machines,including EPS and LDPE(low density polyethylene)sheet extrusion lines,EPE foam sheet extrusion lines,EPE tube and rod making machines,EPE foam net machines,EPS disposable container machines,laminating machines for food packaging materials,laminating machines for cement bags,and heavy-duty laminators and other peripheral equipment,all of which are heavily exported to Japan,Canada,the United States,Australia,New Zealand,Poland,Ukraine,Russia,and Middle East and Latin American countries.
Considering that a major growth engine for the company was the machines for making XPS(polystylene)foam planks,which are a kind of building material,the faltering realty market and weak global economic growth have been key reasons for the declining orders for its machines,Chang said.
"Since the pessimistic economic outlook has caused most customers to slash their spending on fixed assets,our company receives few new orders,"Chang said."We sustain our revenue by the renewal of delayed shipments and new peripherals ordered to change the functionality of old machines for new purposes.The situation is less likely to turn around in the second half of the year.We are not optimistic."
Exploring Emerging Markets
Chang said the company plans on sustaining growth by continuing to find new customers in emerging countries."We are noticing that after decades of hard work orders from Brazil have increased over the past two years,"he said."So this market is regarded as one of the key factors in our future growth."
Chang said the company plans on sustaining growth by continuing to find new customers in emerging countries."We are noticing that after decades of hard work orders from Brazil have increased over the past two years,"he said."So this market is regarded as one of the key factors in our future growth."
With consummate manufacturing capability and commitment to customer satisfaction,Poly Machinery aims to design and develop different plastic extrusion machines that are tailored to separate kinds of customers,Chang said.The company also concentrates on customer service to build a more distinct name for itself as a provider of turnkey solutions.
Over the past two years,the company has worked with Japanese customers to enhance the performance of its machines,and the partnership has paid off.By improving die heads in cooperation with its partners,Poly Machinery has worked out several beefed-up foam sheet making machines that produce more flat,neat surfaces of sheets without lumps and other defects,which are suitable for packaging electronic products,Chang said."This technological achievement sets our company apart from peers and will hopefully give us a boost when the market turns around in the future."
Turnkey Solutions for a Turnaround
San Chyi Machinery Industrial Co.,Ltd.,which has seen contract orders for new machines shrink,has increased its efforts to provide turnkey or whole plant solutions to reverse the current situation,said company manager Jason Chen.
Founded in 1980 in Taichung City in central Taiwan,the company manufactures plastic machines and lines.Its products include PP,HDPE,PA and PET monofilament making machines,PP and HDPE flat yarn making machines,PE blowing film making machines,lamination machines,circular looms,plastic waste recycling and pelletizing machines,and various production lines for making woven,cement and PP-paper bags,tarpaulins,agricultural and shading nets,plastic ropes and plastic films.
San Chyi`s machines feature excellent functionality and high performance that are a result of the precision parts designed by its skillful engineers using 3D mechanical designing software.Its machines are built with key parts from top-end suppliers that include bearings from Switzerland`s SKF and Japan`s Koyo,VFDs(variable-frequency drivers)from Japan`s Fuji and servo motors from Taiwan`s Teco Electric&Machinery.By-the-book quality controls are carried out using top quality standards.And the results have been good:the company`s machines have been heavily exported to Asia,the United States,Europe and Africa under its owned brand San Chyi.
Despite its success in the global market,this veteran supplier saw orders drop significantly during the first half of 2012 and faces an outlook of slack activity in the second half,Chen said."We have almost run out of orders for new machines in the first half and have to rely on domestic customers'demand for parts replacements and maintenance services."
To turn this situation around,San Chyi has been exploring the market for whole plant equipment."We have succeeded in exporting our whole-plant solutions for making various kinds of plastic bags to emerging countries by extensively involving our subcontractors and partners in the supply chain,"Chen said.He also said that currently less than 10 plastic machine suppliers in Taiwan succeed in exporting such solutions.
The company`s whole plant solutions provide customers not only with machines and peripherals,but also with preliminary planning on factory layouts for optimal production,inventory management and maintenance services,Chen said.These solutions require the coordinated efforts of all of the suppliers in the supply chain,and in the future San Chyi will become even more focused on whole plant solutions to secure sustainable development,he said.
Source:
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