Smart and sustainable stamping

In the September 2024 issue of ISMR, Simon Tsend, President of Taiwanese stamping specialist Chin Fong, outlines the company’s philosophy, achievements, aims, objectives and continuous innovation strategy to ISMR.

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Founded in 1948, Chin Fong is one of the largest professional manufacturers of mechanical presses. The Taiwanese press specialist has placed smart machinery at the heart of its technological innovations. From a single-press smart solution, the company has moved onto multi-press connections and cloud computing, linking ERP management and AI computing systems to analyse Big Data.

Intelligent transformation, it believes, is key to its customers’ future success. It helps clients to plan their smart factory, robotic and automation applications according to their needs and different stages of transformation.

It does this through machine selection consultancy services, combined with its “iForming PMS - Intelligent Forming Productivity Management System” solution.

Chin Fong has further boosted its sustainability credentials with the award of certification from SGS for ISO 14064-1 greenhouse gas and ISO-14067 Carbon Footprint for its C-frame press products.

Simon Tsend, President, Chin Fong, discusses this and the company’s philosophy, achievements, aims, objectives and continuous innovation strategy with ISMR.

ISMR: Please give a brief background to Chin Fong, including its corporate philosophy?

ST: Currently, we are the largest professional mechanical press manufacturer in Taiwan, with a robust R&D team. Our products are marketed globally, and our service network spans various regions. We are a well-known name in the press industry.

Our origins go back to a small ironworks factory, now an international conglomerate. Enduring economic storms, two zero-to-hero start-up journeys and maturing over decades, we have become Taiwan’s largest forging equipment manufacturer.

Chin Fong’s operating philosophy is Innovation + Service + Feedback. On customer service, we uphold a partner-oriented approach. This embodies our three-fold philosophy of ‘Innovation’ for seeking change and value, ‘Service’ with a customer-centric focus and ‘Feedback’ in returning benefits. We aim to provide customers with superior levels of service.

We understand that innovation, service and feedback are three indispensable elements that intertwine and complement each other, forming the cornerstone of our operations. We will continuously advance innovation, elevate service quality and contribute to society through various forms of feedback, creating more value for customers, employees and the community.

ISMR: Please highlight any notable successes and achievements over the past two-three years (including 2023 business results)?

ST: In a groundbreaking achievement, Chin Fong Machine has secured verification from SGS for ISO 14064-1 greenhouse gas and ISO 14067 Carbon Footprint. This recognition extends specifically to our C-frame presses, marking a historic milestone. Chin Fong Machine now proudly stands as the inaugural metal forging equipment manufacturer in Taiwan to attain dual certification for both carbon disclosure and product carbon footprint, reinforcing its commitment to environmental stewardship and industry leadership.

At the close of 2022, Chin Fong Machine embarked on an extensive carbon disclosure journey, securing dual certification for ISO14064-1 and ISO14067. This achievement not only underscores our dedication to sustainable business practices but also highlights our deep-rooted commitment to the wellbeing of the planet. Moving forward, we remain steadfast in our focus on green design and process enhancements, actively working towards creating and introducing environmentally friendly and sustainable solutions that align with global trends for the benefit of our customers.

Controlling carbon emissions is an essential step towards attaining carbon neutrality. In a proactive move, Chin Fong, under the guidance of consultants, dedicated substantial efforts to training dozens of employees as seeded carbon disclosure personnel last year. These endeavours came to fruition with the award of the greenhouse gas verification certificate in October 2023.

Looking ahead, we are setting ambitious goals, intending to extend the carbon disclosure experience of the parent company to all subsidiary entities within the group by 2024. The overarching aim is to achieve greenhouse gas disclosure for the entire Chin Fong group within the same timeframe.

2023 was also the best year for the group in terms of business operations and profitability. The primary driving force behind this success is attributed to our overseas subsidiaries, who particularly benefited from increased demand in mainland China’s automotive industry. This surge has provided ample opportunities and orders for Chin Fong’s products. Orders from companies such as BYD, and other automotive-related manufacturers, have played a significant role.

Chin Fong (China) accounted for 60-65% of the 2023 revenue, projecting it to be the most successful year to date. The group’s estimated consolidated revenue for 2023 is around six billion NTD, and there’s potential to challenge an EPS of 2.6 NTD. This is a remarkable feat, amid global economic headwinds.

ISMR: What is your strategic and technical focus for the company?

ST: The key directions for the development of forging equipment technology include forming techniques for lightweight metals and high-tensile steel sheets, waste reduction through composite production and energy-efficient intelligent forming.

The future strategic mindset is centred around “innovative research and development, global expansion.” With the influence of trends towards energy conservation, lightweight design and environmental protection, the development focus of forging equipment will also concentrate on lightweight metals; high-tensile steel sheet forming techniques; waste reduction through composite production; intelligent forming and energy efficiency.

Despite the less favourable global outlook expected in 2024, Chin Fong is gearing up for operational goals amid challenging circumstances. The company aims to achieve these objectives through various innovative models, aligning with the innovative-driven philosophy held in 2023. This approach encompasses innovation in products; processes; resource integration; cost reduction and more, all geared towards fostering a distinct and robust competitive edge.

Therefore, ‘innovation’ stands as the driving force propelling Chin Fong Group forwards, reflecting a sustained commitment to this guiding principle. Chin Fong is adopting innovation and internationalisation as its business strategy to establish sustainable competitive advantages.

ISMR: What, in your view, are important industry trends and challenges? How are you responding to these?

To read the rest of this interview in the September 2024 issue of ISMR, see https://joom.ag/1myd/p84