Co-Wealth Enterprise Co., Ltd. - Technical Wisdom Elicits Innovative Value
First Focus on Accuracy of Special Fasteners
Co-Wealth Enterprise Co., Ltd. has produced special fasteners since 1990. Its annual total revenue is around NTD200 million. 95% of its products are under automatic production. While only some tapping screws for automobiles and home appliances demand for a second time processing, very few products need the second time processing. Though the company exports most products via traders, an international trade department has been set up four years ago to communicate with customers and it will actively expand export activities in the future. At first, a laptop factory asked Co-Wealth to develop key parts. Following this early trend of laptop development, Co-Wealth mainly manufactured laptop-used clips at early stage. Six years ago, it gradually cut into the production of fasteners and clips for auto parts industry. In addition, it manufactures aerospace fasteners and participates in electro-optical products projects. 80% of the molds that Co-Wealth uses are self-developed and the special fasteners account for 45% of its business. Jerry Wang, General Manager of Co-Wealth says, “There is no big difference between making special products and standard products. The only difference is in the accuracy of molds.” Wang also says that as long as customers provide drawings and samples, Co-Wealth will try its best to cooperate with customers to produce special fasteners.
70% of World’s Laptop Bearing Clips are from Co-Wealth
Wang recalled that the company did encounter some problems when producing laptop products since then. The holding force of the bearing clips used for laptops cannot be either too strong or too weak. During the production, Co-Wealth cooperated with the customer’s R&D department to solve the problems, enhancing the accuracy and recording the production process. After three to four years, because of the growth of the laptop market, customers’ requests became stricter. Moreover, since the customers began to develop products for the Japanese market, the requests of high quality became urgent. “A customer’s R&D staff once even called me at midnight to discuss how to achieve its customer’s need.” This staff has made a strong impression on Wang. After they solved the problems of tolerance, material, hardness, and appearance, the peak period of laptops sales in 2008 brought Co-Wealth sufficient production experience. Because its products are with high quality, the customers feel confident about the company. Some customers even say that as long as it is Co-Wealth’s product, inspection is unnecessary. Although the unit price of the laptop clip is not very high, Wang is proud that the company can still stabilize high quality in mass production. Taiwan almost occupies 90% of the global laptop industry, and 60% of them are Co-Wealth’s customers. In other words, almost 70% of the world’s laptop bearing clips are from Co-Wealth. Because it entered the laptop industry early, its production and quality are both mature. It only uses the special materials from Japan; however, owing to the facts that the development of new molds is fast and the laptop product line and modularization are complete, the company’s laptop parts are less expensive than those made in China. With top quality and competitive price, it’s hard for other companies to compete with Co-Wealth’s products.
Wang says that an auto industry customer asked Co-Wealth to develop new products and the company itself has plans to expand the product line; therefore, it had a chance to enter the o auto industry. After joining the industry, its earnings grow every year. It pays much attention to listen to customers’ demand so its budget of product development accounts for 10% of the total annual cost. “Since people’s life safety depends on reliable auto production, the requests of mechanical properties are higher than the computer industry.” Because of this, Co-Wealth set up the second factory to use high tonnage punching machines to manufacture special fasteners. The first factory was turned to use lower tonnage punching machines to make special fasteners. It expects to combine the two factories and move to the headquarter with usage area of around 6,600 sqm in 2013. Wang explains, “Through the cooperation with the manufacturers of mold-related products and special processing machines, the company has accumulated experience and found a way to vertically integrate the manufacturing in one production line.”
Exploring Chinese Market
Introducing Image-Display Sorting Machine for Complete Inspection
Recently, with the new automatic production line, Co-Wealth’s production capacity has been increased and the cost could be reduced again. “For enhancing the yield rate, although the cost of the image-display sorting machine is higher, it can provide high quality after introduced in 2012.” “Never sell defective products” is the company’s another goal of high quality. In the first half of 2012, Co-Wealth will exhibit auto-used clips and other fastener parts and accessories in Taiwan International Fastener Show and Taipei Int'l Auto Parts & Accessories Show. It expects to activate the promotion of the products. In order to enhance the ability of international management and meet customers’ need, Co-Wealth plans to set up an office in China this year; besides serving the old customers, it will expand new customer base. In regards to Co-Wealth’s future prospect, Wang says, “Though fastener industry is part of the traditional industry, we believe that no matter which industry you are in, you can bring contribution to the society and influence other industries. Even if it is a small part, like a fastener, we still can show its real value.” Its prospect allows Co-Wealth to have the executive ability to make dreams come true and people would pay more attentions to Co-Wealth’s next step.
Subscribe
