FCS enhanced differentiation strategy and received a large number of orders

Established in 1974, FCS is mainly engaged in R&D and manufacturing of plastic injection molding machines. In recent years, it has advanced to provide customized intelligent injection solutions. With five production plants in Tainan, Dongguan, Ningbo, Ningbo No.2 Factory (Hangzhou Bay New District), Indonesia and India, it sees an average annual turnover of about USD120 million. Last year, affected by the pandemic, it had overall revenue of USD100 million, 7% lower than that of 2019.

The main clients of FCS are the automobile and locomotive components and packaging industry. In recent years, lightweight technology has been born in the context of environmental protection and all-electric vehicles. In this regard, FCS has successfully developed technologies such as PC Glazing (glass-like molding), foaming injection molding system (weight reduction / enhancement / noise reduction / temperature insulation) and carbon long fiber molding (reinforced plastic parts).

FCS Group CEO, Alan Wang
Photo: FCS Group CEO, Alan Wang

According to CEO Alan Wang, in a press conference was held in Mumbai, India in January last year, FCS announced the formal establishment of the Indian production base in Ahmedabad, but the base immediately faced a short-term operation shutdown due to the epidemic. The Indian operation team stepped up efforts and received revenue of USD900,000 in December. Its goal is to gain 10% of the local market share. FCS saw a stable performance in the United States. Last year, it still maintained steady growth, and even received a large number of orders in Q4.

Both Taiwan and China witnessed a stable performance in the second half of last year. The main reason was that some neighboring Asian production towns were affected by the pandemic, which led to the transfer of orders to Taiwan and China, which controlled the pandemic earlier, said Alan Wang. In the first quarter of this year, due to the severe shortage of materials in the supply chain, almost all FCS orders were delivered from the second quarter.

In terms of operation strategy, Alan Wang stressed the importance of “differentiation”. The technology of injection molding machine is becoming increasingly mature. Thus, efforts should be made to pursue machine innovation and optimization and assist clients to intelligently control the variation in process. The headquarters in Taiwan has also set up a demonstration factory. It holds seminars every year to share production cases and help clients understand the application of intelligent manufacturing technology to improve process efficiency. Another aspect of differentiation is the application of digital marketing. FCS' online marketing is ahead of the production machinery industry and can contact new clients online.

Regarding the future of the plastic industry, Alan Wang mentioned that although the pandemic caused the crisis of supply chain failure for a short time, in the long run, resource depletion is the largest crisis, revealing the importance of changing from linear economy to circular economy. Based on the corporate mission of “shaping a better world”, the PET Recycling Division was established in Batam Island, Indonesia in 2019. Every year, 200,000 tons of PET bottles were recycled from clients, and made into blister packaging boxes and fiber cloth materials, thus achieving multiple cycles.

Source: Economy Daily News