Industry Insight

Taiwan Hardware Makers
Continue to Enjoy Export Growth

BY DANIEL FOONG

Having been in operations for more than 50 years, Lung Huei Metal, a professional manufacturer of padlocks, made a gain of 15 percent in export in 2002 despite the global economic slump.

Europe has been the key destination for locks made by Lung Huei Metal, founded in Pingtung, southern tip of Taiwan. Shipments to Europe account for 60 percent of its total export, Chen said, adding that shipments to the U.S. have been on the decline over the last few years, ending up with 10 percent today. The remaining 30 percent goes to Japan, Southeast Asia and Latin America. "Previously, our lock shipments to the Japanese market took quite a big chunk. Since the emergence of economic stagnation in Japan, export to the Asia's biggest economy has been declining," said the managing director.

Chen noted that the locks offered by his company are comparable to those made by advanced countries. "In terms of quality, we are not lagging behind the industrialized nations. However, as far as marketing is concerned, there are a lot to be learned from them," he stressed. The managing director revealed that several world-renown brands of lock makers in the U.S. and Europe did place OEM orders with Lung Huei Metal.

Chen pointed out that due to cut-throat competition from mainland China, a number of lock manufacturers in Taiwan, including a big one, have ceased operations. "Mainland China has the price advantage, not to mention quality and reliability," stated the managing director.

Snips and pliers

Founded in 1975 in Taichung, central Taiwan, Allprofessional Mfg. Co. is a professional manufacturer of snips and pliers for industrial use.

The snips and pliers, of top quality, are mainly exported to North and South Americas and Europe. While Europe takes 40 percent of its total exports, North and South Americas absorb 40 percent of its overall shipments. David Huang, chairman of Allprofessional Mfg. Co., said the remaining 20 percent goes to Asia and Oceania.

The worldwide economic downturn has caused no adverse impact on the hand tool exports of Allprofessional Mfg. Co. The chairman said his company registered 20 percent increase in export last year from a year earlier. Export growth in the first six months of this year was even more fantastic. "Our quality is even better than many made in the U.S., but our prices are 30 to 50 percent lower," stressed the chairman of Allprofessional Mfg. Co.

The R&D department, composed of eight specialists, introduces new products and packing every year, but not on a fixed season, according to Huang. All the snips and pliers are made at its factory in the Taichung Industrial Park in central Taiwan. The company has no intention to establish another plant in mainland China over the next several years.

Allprofessional Mfg. Co. has raised quotation slightly this year due to the price hikes of steel materials, which are largely supplied by China Steel Corp, based in Kaohsiung, southern Taiwan. Despite the price hike, supply of materials is not interrupted.