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Automotive Parts
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Research and Development
Services Industry |
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Cultivating localization while promoting globalization;
Competition plus cooperation make the pie bigger.
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◎ Author:Iming Wu◎ Graph:Michael
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Every tourist to Tainan can see a huge logo of Tong Yang Group when the plane is flying over the freeway and about to land. This is Tong Yang Group of automobile and motorcycle parts, the biggest vehicle parts corporation not only in Taiwan but also in the world. Its hinterland extends approximately 70,362 ping (232,595.67 square meters), which makes Tong Yang the landmark of An Nan District, TainanCity. Upon entering the gate of TYG, you will see a slogan, "Make safety the only way through the good quality of our products." Right after that, you will see another maxim of 3 words, "Enthusiasm, Honesty and Creativity." These words represent the entrepreneurship of TYG for the past 30 year and also show their foresight and belief.
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According to Mr. Yung-Siang Wu, the Vice President of TYG, the ideas of "enthusiasm, honesty and creativity" that Tong Yang is promoting was the joint hope of our leaders 30 years ago. They are not promoted for fashion."
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Competition Plus Cooperation Make the Pie Bigger.
The development of TYG is the pride of Taiwan. Creating new opportunities for potential products has been the niche for Tong Yang Group for the past 50 years. TYG has many subsidiaries, such as Tang Yang Industrial Corporation, Taiwan Kai Yih Industrial Co., Ltd., Kai Ming Industry Co., Ltd., Ru Yang Industry Co., Ltd., Tung Yang Chemical Co., Ltd., etc. The industry is huge. Mr. Wu said in 1952, his father, Mr. Gao Wu who was also the founder of Tong Yang Group, established Yi Chang Plastic Co. and started his career with a bicycle. At that time, people were not rich. Transportation vehicles were not popular, either, except bicycles. The apparel of bicycles was usually made of plastics. However, plastics were not strong enough against collisions. Mr. Gao Wu saw the opportunity and started the R&D on high quality plastics. Nevertheless the potential market in Taiwan was small since most of the bicycles were imported. As a result, Mr. Wu had to seek other possible opportunities than plastics for bicycles in order to survive.
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At that time, Taiwan's total population was just over 10 million. The demand for bicycles was low. In order to survive in the market, Yi Chang transformed to motorcycle and automobile related plastic manufacturing. In 1967, Yi Chang expanded its business and renamed the company as "Tong Yang Industry Corporation." Its major focus transformed from bicycle plastic to motorcycle and automobile plastic. Tong Yang gradually gained its popularity in the market and established good relationship with its clients. Starting from 1967, Tong Yang Industry Co. started to manufacture motorcycle and automobile parts. It produced wind shields, side covers, storage boxes, and light shields for motorcycles. For automobiles, it produced bumpers, engine covers, radiator housing, instrument clusters, wind mounts, engine covers…etc. Tong Yang reached great achievements in this field. Thus, in order to set up consistent production, Tong Young started to invest other automobile related industries: Taiwan Kai Yih Industry Co. Ltd, which produced automobile sheet metal parts and accessories, moulds and hardware parts; Kai Ming Industry Corporation, which manufactured and sold vehicle parts, accessories, and moulds; Ru Yang Industry Co. Ltd, manufacturing and selling automobile instrument clusters and parts; Tung Yang Chemical Co. Ltd., produces various paints for plastics.
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Tong Yang also set up joint ventures with other businesses. Rising Sun Heater Exchanger was established jointly with Japanese ToYo Radiator Co., producing and selling heat exchange products such as automobile radiators and air condensers. With Japanese Mitsuboshi Belting Ltd., they established Tong Yang Mitsubishi Co. Ltd, producing OA, electronic appliances and the belt for sewing machines. In order to meet the needs of customers in North American, TYGP was established in Texas, mainly manufacturing and selling automobile parts. In addition, Tong Yang Group has joint ventures with local automobile groups in 14 cities in Mainland China: Chongqing Dajiang Yuchyang Plastics Co., Ltd., Chongqing Daijian Tong Yang Plastics Co., Ltd., Nanjing Tong Yang Plastics Co., Ltd., Wuhu Youth Tong Yang Plastics Co., Ltd., Fuzhou Tong Yang Plastic Co., Ltd., Chang Chun Fawer Tong Yang Plastic Co., Ltd., Harbin Hafei Tong Yang Plastics Co., Ltd., Harbin Hafei Kai Yih Plastics Co., Ltd., Fuzhou Kai Ming Plastics |
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Co., Ltd., Tienjin Mitsuboshi Co. Ltd., Fanyu Nan Sha Tung Yang Chemical Co. Ltd., Changchun Tung Yang Chemical Co. Ltd., and Wuhan Tung Yang Chemical Co. Ltd. Tong Yang is the dominant power in all these 14 companies. Mr. Wu laughed and said that Tong Yang is the first company in Taiwan which exports automobile parts. Other automobile businesses are like its comrades. There are both competition and cooperation between Tong Yang and other businesses in the same industry. The only task among these three parties is to make the pie bigger. "We can actually say that the automobile parts industry and automobile factories are benchmarking hand in hand," said Wu. |
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