The squeeze is on as Taiwanese drive to climb value treeThe squeeze is on as Taiwanese drive to climb value tree

With increasing competition from Chinese and Hong Kong manufacturers, and lower-cost Japanese machinery becoming more prevalent—some of it made in China—Taiwanese suppliers are intensifying efforts to move upmarket.

Taiwanese suppliers of plastics processing machinery have traditionally served markets midway between entry-level machines from suppliers in greater China,and higher-end Japanese and European machinery. Now, they face increased competition from both sides as Chinese and Hong Kong suppliers make technological strides, and as Japanese machine makers reduce costs through overseas procurement of components and offshore production.

Indeed, exhibitors at the recent Taipeiplas exhibition (March 18-21) had a technological point to prove. Chen Hsong subsidiary Asian Plastic Machinery (APM; Taoyuan) showed several examples of its efforts, including the HS Series high-speed injection press. Angus Peng, sales and marketing deputy general manager says, "A 600-mm/sec injection rate is guaranteed, but some processors have achieved 1000 mm/sec." Early adopters of the 600- and 900-kN presses are molding cell-phone battery cases.

APM also unveiled a 4600-kN hybrid machine with an all-electric injection end—targeted at light guide panels used in LCDs—that is priced significantly lower than Japanese machines. The third showpiece was the SM-5EJ micromolding machine, with a maximum shot weight of 1g.

Fu Chun Shin Machinery Manufacture Co. (FCS; Tainan), meanwhile, highlighted its remote monitoring system for online control and diagnostics. The system monitors process data such as pressure, temperature, and injection velocity every 10 cycles, and automatically makes adjustments to keep the process within specifications. If, however, within seven such measurements any parameter is out of spec, a message is relayed to either a remote computer or a mobile phone.

Export Manager Susan Wang says, "The system is also configured for processors to interact directly with FCS engineers for online technical support."

In electric machines, FCS has added a 300-kN press to its range, while a 500-kN unit is on the way. FCS''s Wang says all-electrics are a long-term project for the firm. "As long as key components are supplied from Japan, they will control the cost. We need to increase local procurement without infringing on patents," she says.

FCS is also increasing capacity six-fold for entry-level machines at its Ningbo, China subsidiary to 600 units/yr. Extra capacity was due on line this month. FCS is also boosting capacity at its Taiwan plant from 1600 units/yr to 2200 units/yr.

Another firm emphasizing all-electrics was Victor Taichung, based in Taichung. Machines are marketed under the Fortune brand in North America, and Europe. Export Manager Martin Li says, "Four clamping forces between 500 and 2000 kN are now available, and our target is to ship 100 machines this year." The majority of machines are bound for China, where they are used to mold connectors and other precision components.

The firm licensed servodrive technology from Fanuc, and despite its all-electric units commanding 60% to 70% higher price tags than the corresponding hydraulic presses, they are still 20% to 35% cheaper than Japanese machines, according to Lee.

Another player in all-electrics in Taiwan is Creator Precision Co., Taichung. The firm has added an 882-kN version to its existing 441-kN press. It also introduced a direct-clamp hydraulic machine, which is relatively rare for a Taiwanese firm. Kevin Lee, sales supervisor at Creator, says processors currently using direct-clamp machines had approached it requesting a more cost-effective option. Eight machine sizes are available ranging from 245 to 2940 kN.

Multiple-shot injection continues to be a priority for Taiwanese suppliers. Hwa Chin Machinery Factory Co. (Tainan), for example, showed its DC-400M three-component overmolding injection machine. Similarly, Taiwan Union Plastic Machinery Co. (Tainan), introduced its 3CS 250T three-color machine. Taiwan Union also unveiled a 150-kN micromolding machine (the UN2K-15T).

In its efforts to move up the value tree, Jon Wai Machinery Works Co. (Taipei) has developed an inmold labeling system that employs a robot to transfer PP film inserts to a tool molding PP cups. The option is available on the firm''s TW Series machines for thinwall containers. Clamping forces range between 600 and 5000 kN.

Bowling for blowmolding

On the blowmolding front, Chumpower Machinery Corp. (Taichung) formally unveiled its TSS6000 reheat-type stretch blowmolding machine. The new unit employs a single pneumatic cylinder for preform transfer in place of a servomotor, chain, timing wheel, and timing belt. The simplified mechanism consequently reduced both machine and maintenance costs. Bush Hsieh, assistant manager/ R&D, says 45 machines were delivered between November 2003 and March of this year. The machine can mold six .6-liter bottles in a six-cavity configuration, and mold change can be accomplished in 30 minutes.

A new player in the stretch blowmolding field is Fong Kee Iron Works (Tainan). The company reports it has developed a reheat-type unit equipped with two four-head blow stations. The unit can mold containers up to 3 liters in capacity, with maximum production capacity of 3800 containers/hr.

Golfang Mfg. & Development Co., meanwhile, unveiled an injection stretch blowmolding machine for containers up to 600 ml in capacity. The GF/ISB-90 is primarily targeted at cosmetic and toiletry containers.

In injection blowmolding, Parker Plastic Machinery Co. (Taichung) released its PK-IB Series for cosmetic, toiletry, and pharmaceutical containers. The PK30IB molds containers with capacities ranging from 10 to 500 ml, in cavitations of 4, 6, or 8. Output in the case of a 10-ml LDPE eyedrop bottle is rated at 2880/hr.

Twin-screw extruder manufacturer Sino-Alloy Machinery (Taoyuan) has diversified into supply of turnkey solutions that incorporate its PSQ underwater pelletizing system. This was done to avoid excessive competition in the Mainland twin-screw extruder market, according to General Manager Mike Chen. As part of its efforts to add more value, Sino-Alloy recently developed a line for reactive compounding of thermoplastic polyurethane resin. Chen says Sino-Alloy has also inked an OEM deal to manufacture twin-screw extruders on behalf of an undisclosed Japanese supplier, while it is also setting up a line in Taiwan to manufacture wood/PP composites for Japanese firm Misawa Home.

Environmental issues are affecting investment decisions in developing economies according to Sandy Kuo, manager at PVC heat-shrinkable film line manufacturer Jumbo Steel Machinery (Taichung).

"Processors don''t know if their governments will ban PVC, so they want to recoup any investment within two to three years," she says. The firm offers double-bubble biaxial orientation machines with the second stretching stage through an oven for flexible film, and through water for rigid label film. At an entry cost of $65,000 for a line with output of up to 30 kg/hr, the solution represents a cost-effective means compared with cast film lines.

Stephen Moore [email protected]

Contact information