Anchor Manufacturer—Dicha Sombrilla Co.’s New Vietnam Plant Has Put into Production

Dicha Sombrilla Co. was established 30 years ago. After one year of planning and preparation, its new factory (with the area of 4,000 square meters) in Vietnam has started to operate. As of now, the factory maintains a stable production output (200 tonnes per month) and its maximum output is 300 tonnes per month.

 

The company specializes in the production of anchors (mainly wall anchors and expansion anchors). Most of its anchors are sold to the Americas and Europe and a small portion of the products are sold to the trading firms in Taiwan. Mr. Chris Chang, the chairman of the company, points out that with regard to factories in China, their profit margins have shrunk and it is difficult for factories just to survive in there; on the other hand, in Vietnam, labor cost (including various types of insurance premiums) is relatively lower and VND is expected to continue to depreciate in the future; in addition, the anti-dumping duties are not applicable to Vietnam; therefore, the company decided to leave the production base in China, where its factory was located and in operation for 10 years, to Vietnam. “We have set our future business strategy – our headquarters in Taiwan would be responsible for sales and order taking and our new factory in Vietnam for production and export; with such strategy, we can lower our cost in production and thus use our products with a lower price tag to increase our market share”… (For more information please see Fastener World Bimonthly November issue)

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