Cheng Pang Precision: Gearing up the world

He talked about experiences and upcoming strategies in which the company aims to apply in relation to a booming market.

Headquartered in Taoyuan, Taiwan, CPG has successfully expanded its operational site to the mainland China after three-decades of establishment. Presently, the gear motor maker has two factories based in Su Zhou and Dong Guan. With a more localised strategy on top of heightening production from its new factories, CPG is able to response to the surging demands in the metalworking sector, including the ASEAN market.

IMNA: How did you start your company, and what previous experience did you have that made you confident you could succeed in this field?

Cheng Pang Precision was founded in 1990, the founding father was a former sales person in this field, and he noticed the stable demands in reducers, as well as future potentials, whilst I myself was familiar with the technologies of industrial conveyor belts system from my previous career. Along with the managerial and technical expertise, CPG was able to flourish over the years.

IMNA: How has Cheng Pang’s own technology and expertise influenced and impacted the metalworking industry in Asia?

Our core value has always been to manufacture quality products that achieve the highest accuracy. We therefore do not hold back in spending higher cost on materials in return for better quality. We also insist on the creation of unique designs of our reducers, only by addressing a particular niche could the company represent unique solutions in the market.

In Asia, our reducers are known for their power effectiveness, long life-span, low noise and low vibration. Applying the reducers to Asia’s metal working industry these years have substantially helped our customers to secure the stability of their machineries.

I am confident to say that the brand Cheng Pang in the Asia Pacific areas has already established symbolic meanings, and product-guarantee of reducers.

IMNA: What steps are you taking then, from a management point of view to stay competitive and progressive?

We have begun to operate our new initiatives recently. We restructured our marketing strategy – which is to direct our focus in only a few signature products, rather than a wide product line. In short, Cheng Pang does not want to expand our scale horizontally. We want to polish our signature products to perfection. The advantage of implementing this strategy lies in essence of not dispersing resources to create a complete new product category. As I reiterate our concentration in narrowing down product categories.

IMNA: Where do you sell your products? What markets are you targeting?

Our targeted fields of markets are metal working, plastics extrusion, food and beverage processing, lodging and forestry, electrical doors, electronics and packaging industry. Despite of being involved in the major industrial countries such as China, Japan and the U.S., we have also implemented successfully in quite a few emerging economies – like the South East Asia region and the Middle East.

Our products are able to perform more competitive advantages in these markets when compared with our European and American counterparts due to more economical cost and less transportation time being spent on the delivery and production.

IMNA: In what areas, or departments, will you continue to invest?

We would like to increase our investment in European sales. Presently, the European market is still a weaker market for us, due to higher cost and further distance while providing services. Even when competing on a same product quality level, we still have these price (tariff) and services disadvantages to conquer in Europe. Therefore, CPG will continue to invest in these markets and boost our R&D capacity to introduce European market-oriented products.

IMNA: How is your business/sales growth and revenue year on year?

Compared to our revenue in 2016, Cheng Pang’s revenue has witnessed a 15% growth in 2017 till present. The reason of this growth in sales mainly contributes to our internal adjustment of management and sales strategy. We removed some sideline products and decided to focus on reducers, namely 3-Phase reducer, 3-Phase light duty type reducer, 1-Phase reducer, 1-Phase light duty type reducer, and CV vertical motor. The 3-phase and 1-phase reducers are currently the most popular products, they are the main driver of CPG’s soaring revenue. 

IMNA: How involved is the company in South East Asia?

Currently, our revenue in the ASEAN region has been operating quite stably – due to our advantages of quick services and stable quality of our products. We are able to outperform our competitors in Southeast Asia also because of our sufficient amount of products we produce and stock. As mentioned above, CPG devotes in refining and enhancing our current product models. While customers’ orders give us an upsurge in sales and production, it also contributes to a positive cycle of achieving fast-delivering to new clients due to the abundant amount of reducers we produce.

IMNA: To sum up, what would you say were the keys to Cheng Pang’s ongoing success story?

The success story of CPG is built on the relentless dedication of gears with polishing in our reducers, motor coil insulation with F-class, and never holding back on the cost of production – using the best materials and production equipment to achieve precision and stability, including purchasing NOK oil seal and SKF bearing that are 3-5 times price than competitors. Furthermore, we are extremely fast in manufacturing tailor-made products, we can fulfill the requirements from clients’ special requests within 2-3 days.

Finally, CPG also view management strategy adjustment critical. Especially when the manufacturing sector is experiencing technological disruptions from many spheres nowadays, changes and paces are fast - companies must stay flexible and visionary to adopt transformations.