Alan Wang, the Chief Executive Officer of Fu Chun Shin Machinery Manufacture Co., Ltd. (FCS), Taiwan's largest plastic injection molding machine manufacturer, decided in 2018 to establish a manufacturing facility in India. Despite facing challenges during the subsequent year due to the widespread impact of the COVID-19 pandemic, FCS not only weathered the storm but also achieved record-breaking revenue last year. The Indian factory turned profitable in the second quarter of 2023, marking a significant milestone for the company. Looking ahead, Alan Wang sets his sights on elevating FCS to the status of one of the world's top 10 plastic injection molding machine manufacturers.

FCS’s Chairman Po Hsun Wang (right) and General Manager & CEO Alan Wang (left)
 

Jerry Wang, the eldest son of the second generation in the Wang family, was born in 1971, followed by the birth of Alan Wang in 1973. FCS, founded in 1974, has since become a significant part of the Wang family. Po Hsun Wang, their father, often jokes at home that he has three sons, with FCS being the youngest in the family. Reflecting on his childhood, Alan Wang shared that he spent many hours playing in the factory, yet his father never explicitly outlined a succession plan. Instead, Po Hsun Wang encouraged Alan and his brother to follow their individual interests. Alan Wang pursued his academic journey, earning a bachelor's degree in mechanical engineering and a master's degree in automatic control from Sun Yat-sen University before joining the family company.

FCS-Alan Wang

Alan Wang noted that many of his classmates chose careers with major contract manufacturers in the electronics field. If not for his role as a successor, he might have followed a similar professional path. However, with a strong familial foundation in the business, he recognized the potential to contribute to the family's overarching ambition – to become the leading equipment manufacturer in Taiwan with a substantial influence. Consequently, his decision to return home and assume the role of successor aligned seamlessly with this collective goal.
 

Neither eat betel nut nor smoke or drink Former Chairman inherits the tradition “by example”

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While the machinery and equipment industry is often labeled as the "black hand industry," connoting a grassroots nature, Chairman Po Hsun Wang stands apart. Not a smoker or drinker, and abstaining from betel nut consumption, he defies the stereotypes associated with the field. "My father has never been drunk; he doesn't engage in business over drinks. Our approach doesn't rely on social interactions; we let our work speak for itself within our professional circles," remarked Alan Wang, emphasizing his father's commitment to leading by example. Alan Wang emphasized the profound lesson his father imparted: the principle of "leading by example." Po Hsun Wang's teaching method involved actively demonstrating desired behavior, providing a practical learning experience for his two sons. "Succession is a gradual process, and success does not happen overnight. We made a concerted effort to utilize the time available for learning. The chairman, over the years, accumulated a wealth of experience in decision-making, and it's this accumulated wisdom that proves to be the most challenging to impart," reflected Alan Wang.

Succession poses unique challenges in the machinery industry. The leaders have to understand technology and marketing, while possessing management knowledge. Consequently, the cultivation of successors in the machinery sector is a lengthier process compared to other industries. Alan Wang, appointed CEO at the age of 45, embarked on his journey with the company at 27 after completing his master's degree. He started from the entry-level role in mechanical design, progressing through internships in production management and procurement within the factory. Demonstrating his commitment to a comprehensive understanding of the business, he further engaged in the marketing business division and pursued an EMBA degree. By the time he assumed the role of successor in 2018, he had served as the deputy general manager, accumulating practical experience across all aspects of the organization.

Huge plastic injection molding machine assembly line behind Alan Wang, CEO of FCS in Tainan. Reported by Hsueh-Sheng Liu/Photography

Alan Wang's father communicated the decision to him just a week before the succession officially took effect. According to Alan Wang, his father's timing was based on a judgment of his sons' mental maturity, signaling a pivotal moment for leadership transition. "It's clearly an incremental process, as I assumed CEO responsibilities before the formal appointment to the position," noted Alan Wang. Reflecting on his journey, Alan Wang acknowledged that, at 50 years old this year, taking on the role of successor at the age of 45 might be considered later in the context of the second generation. However, he emphasized that this timeline aligns with the deliberate cultivation process inherent in the machinery industry.

Alan Wang made the decision to build a factory in India after appointed as the CEO, but encountered the COVID-19 headwind

In the year he assumed the role of successor, Alan Wang made the strategic decision to establish a factory in India, charting a course for the group's next growth phase. FCS became the pioneering Taiwanese company in the machinery and equipment industry to set up operations in India. Wang's choice of India as the first production base outside Greater China was primarily driven by his optimism about the local demographic dividend. He anticipated that FCS could capitalize on this and position itself as the next significant market, next to the mainland Chinese market.

However, the worldwide onset of the COVID-19 pandemic in 2019 marked Alan Wang's initial trial as CEO. Seeking guidance from his father, Po Hsun Wang, on how to navigate the challenge, Alan was met with a candid response. Po Hsun Wang admitted to never having encountered such a situation before. "That implies there is no ready-made answer, and I had to confront it independently," remarked Alan Wang.

Alan Wang's strategic approach involved training Indian colleagues in Taiwan and then deploy them as seed employees for the production line in India. He also planned to adopt the rigorous quality assurance processes practiced in Taiwan to the Indian operations, and implement remote management through video conferences. He expected support by key local staffs in India to facilitate seamless functioning. Being the pioneering machinery equipment manufacturer to establish a factory in India, FCS had to build the entire supply chain from scratch. This involved the establishment of processes for casting, processing, heat treatment, and the introduction of a comprehensive plant management system.

Fortunately, the epidemic control measures have been lifted this year, paving the way for the continued expansion of the factory in India. It is anticipated that its capacity will surpass that of the Taiwan facility in the foreseeable future. As indicated in FCS's financial report, the Indian factory, which has seen a five-year investment, started showing a modest profit in the second quarter of 2023, despite facing initial losses in the first half of the year.

FCS operates two factories in Ningbo and Dongguan in mainland China. The Ningbo facility holds the fourth position in export earnings within the local market. With revenue generated in mainland China constituting over half of the total, the mainland market stands as FCS's largest. Alan Wang's elder brother, Jerry Wang, assumes the role of Chairman at the FCS headquarters in mainland China, actively contributing to the acceleration of a factory's construction in Hangzhou Bay New Zone. This new facility will commence operation in 2024.
 

Ten years’ investment has yielded good results, LOGO was changed to improve the group image

In 2011, he spearheaded the revamping of the brand's corporate identity. The three English initials, FCS, underwent a transformation into streamlined words, accompanied by a green appeal symbolizing a commitment to environmental protection and energy conservation.

Alan Wang spearheaded the revamping of the brand's corporate identity. The three English initials FCS became streamlined words, and was combined with green appeal -- environmental protection and energy conservation. Reported by Hsueh-Sheng Liu/Photography

Majored in Mechanics, Alan Wang played a pivotal role in driving the development of numerous key new products. In the past, plastic injection molding predominantly involved single-component injection molding. However, starting in 2008, Wang initiated plans to pioneer the development of two-component and multi-component injection molding machines, reaching the pinnacle with a five-component injection molding machine. During the initial stages, customers were uncertain about the applications for such machines. It wasn't until the automotive industry gained prominence, coupled with the emergence of lightweight technology trends, that the potential of these machines became evident. By 2020, the market demand had shifted towards the two-component injection molding machine. The imperative to use plastic as a substitute for steel and glass positioned the multi-component machine as FCS's primary product. Notably, FCS's multi-component machines have attained a significant market share in mainland China and are employed by six of the world's top automobile lamp factories.

Alan Wang is strategically paving the way for the next growth engine with GENTREX, a physical foam injection molding system. His optimism is rooted in addressing energy conservation and carbon reduction concerns. Starting 2025, chemical blowing agents will be banned in the international footwear industry, prompting the need for machine replacements. "In fact, the focal point of my efforts is centered on technology. Our endeavors included a decade-long push for our last successful product. The groundwork for GENTREX has been strategically laid out over the past 7 to 8 years. We anticipate it will require 8 to 10 years to yield results. The prolonged cycle is inherent in our industry, and process of succession training is also complex."

Despite holding the position of CEO, Alan Wang remains actively engaged in hands-on operations, conducting monthly inspections and spot checks of products for quality assurance on the factory floor. His unannounced visits, coupled with sharing business goals and providing monthly progress reports, mirror his commitment to managing from the ground up, much like his father.

"As time has passed, my management style has evolved to become more similar to my father's. In the past, I was a little rebellious, believing that as successors, we should employ new methods. However, my perspective on the importance of details has increasingly aligned with my father's. I've come to realize that in certain matters, there's no clear right or wrong; the key is mastering the details. Since assuming the role of successor, I've shifted away from trying to differentiate myself from my father. Instead, I find myself more adept at considering various details in management, reaching a more mature level of leadership."

When Alan Wang joined FCS, its revenue was only NTD 700-800 million, and now it is NTD 4.5 billion. His next goal is that FCS crosses the threshold of NTD 11 billion in revenue and becomes a company among the world’s top 10 manufacturers of plastic injection molding machines in Taiwan.

When Alan Wang joined FCS, the company's revenue was NTD 700-800 million. Under his leadership, FCS has experienced remarkable growth, currently reaching NTD 4.5 billion. Looking ahead, his aspiration is for FCS to surpass the NTD 11 billion revenue mark and solidify its position as one of the world's top 10 manufacturers of plastic injection molding machines based in Taiwan.

Source: Economic Daily