Seven Ocean Hydraulics: Looking for new markets to conquer

True to its name Seven Oceans Hydraulic Industrial Co., Ltd has its sights firmly set on markets abroad but it isn' t going to neglect Taiwan as it has always been a niche market for this hydraulic valve maker, founded by John Chen, a former factory manager for Northman, 20 years ago in the city of Sanchong. The company has since then opened factories across the Taiwan Straits in Songjian near Shanghai and Taichung. It also moved its headquarter and third factory to this mid-island city and capital of the Taiwan machine industry as its own supply chain and many of its initial clients are located in the area. And they still comprise, Sales Manager H.C. Lee points out, about 60% of the company' s total sales revenue of US$18 million in 2006/7 - an average growth of 10% in the past five years. "But we can' t afford to keep all our eggs in the same basket and are now looking for new world' s to conquer" Lee says. The company eyes other markets and hopes to open sales channels abroad. One big advantage is that most of its existing Taiwan clients have moved to China and its factory in Shanghai is now able to supply these clients. Their second level products are made in Taiwan. "We see ourselves in the upper class level with prices comparable to Japanese and the Dutch - the leaders in this field." Strategic position in Taiwan and the mainland has pushed the company's competitiveness. Traditionally known for their hydraulic unit and directional solenoid controlled valve - current production reaches 40,000 a year - with other parts like pressure pumps and motors from local or Japanese suppliers. The hydraulic systems for CNC machinery - some 250 to 350 sets a month - are produced in the second factory in Taichung. The company also plans to launch its brand of pumps later this year. To this end substantial investment has already been made in four new 8M Mori machining units from Japan - two each in the Shanghai and Taichung factories. A mechanical engineer by training Lee warms to the subject of pump and motor specifications. Hydraulic components, for instance, always operate across a range of low and high pressure from 70 to 250 bar, something that is always fixed by the client誷 demand."We're always able to come up with a customized hydraulic system" he says. Presently Seven Ocean uses 10 to 180HP Tatung motors and 70 bar locally made Anson pumps in hydraulic systems for packing and paper compressing machines. Imported Parker pumps with a pressure range of up to 210 bars are used in packing machines. Nothing is spared on R&D either with four engineers dedicated to design and development and another two for quality control. Rapid rise in material costs and negotiating with material suppliers to keep production schedules are cited as major challenges. In the end it all comes down to "good housekeeping?with the benefits being passed on to our customers," Lee adds.

Seven Ocean Hydraulic Industrial Co., Ltd. Tel: +886-4 2273 9880 Fax: +886-4 2273 9932 E-mail: sales@seven-ocean.com.tw Website: www.fluidman.com.tw

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