Industry Activities 

Best Supplier Award by US Fastener Manufacturer - Chia-Li Co., Ltd. Demonstrates Outstanding Capability and Strength in Operations

2012-03-05

Chia-Li Co., Ltd. was established more than 20 years ago. In the beginning, the company’s main products were construction-used SEMS fasteners. The company continues to focus on the manufacturing and quality of such fasteners. With its competitive advantage in large-scale production capacity, it has gradually risen up in the fastener industry, and SFS intec, a US leading construction-used fastener manufacturer, has given the best supplier award to the company for 10 consecutive years.

 

With Mobility to Meet Requirements of Rush Orders

As of now, 80% of Chia-Li’s revenue is generated from the sale of 3.5~6.3 mm hex screws (with washers) and the rest of its revenue is generated from the sale of wood screws, drywall screws and furniture screws. Most of its products were sold to the US market. Because the SEMS fasteners market has become more and more competitive, the company has actively developed markets besides the US, such as Europe, the ASEAN and Latin America, so as to spread out the risk.

In addition, after several ups and downs in the global economic condition in the past few years, buyers often place rush orders when they need the products. Michael Tsai, President of the company, says, “In the past, SEMS fasteners took a lot of labor and a longer time to manufacture; therefore, the profit margins were big. However, today, since all the machines have been automated, the profit margins of SEMS fasteners have gone down.” Thus, in such tough environment, “speed” and “production capacity” have become the decisive factors. The company has accumulated a wealth of experience in assembly through the entrusted manufacturing of SEMS fasteners. With a great investment in purchasing its manufacturing equipment, the company can meet the requirements of rush orders without affecting the quality of its products.

High Quality as Top Priority
Aiming to Increase Production Capacity in 2 Years

Ensuring the quality of its SEMS fasteners, Chia-Li was awarded with the ISO 9002 certificate (quality assurance system) in 1998; in 2011, it was awarded with the ISO 9001-2008 certificate as well. The company has purchased several testing and checking devices, such as tensile testers, tapping capability testers, membrane thickness testers, 2-D and 3-D projectors, etc. Moreover, the company has employed a business management consultant firm to provide quality control trainings for its employees. Furthermore, the company continues to strengthen the on-the-job trainings of its employees and to nurture and cultivate its employees. From the aforesaid, it can be seen that the company has demonstrated its determination and commitment to high quality.

Since the homebuilding market of the US has gradually recovered, Chia-Li’s orders have backed up to the first half of 2012. Its turnover is expected to exhibit a big annual growth of over 30% in 2012. Being optimistic about the future outlook of the fastener industry, it aims to increase its production capacity from the current 450 tons per month to 650 tons per month in two years. Tsai indicates, “At the present time, to compete with other fastener manufacturers, the increase in production capacity would be quite important.” He hopes the company may continue to carry out its operation in a steady pace and become an ODM. “To secure our continuous development, we will provide better services and products to our clients,” adds Tsai. “We have to carry out our business and operations as if we were in the service sector, not the manufacturing sector.” Chia-Li’s constant management goal is to meet its clients’ expectations in quality and punctual delivery.