Service Teams that Enhances the Competitiveness of the Steel Industry

Facing the volatile international situation, CSC realizes that innovation in key technologies is still insufficient to promote downstream industrial upgrading. To upholds the belief that "CSC will only thrive if customers thrive", CSC utilizes over four decades of production and management experience, and integrates with external national-level industrial research institutes (MIRDC, Corporate Synergy Development Center, etc.) to carry out industry services, in hopes of jointly finding a new blue ocean strategy that will help steel using industries in Taiwan with transformation and upgradeing to making a breakthrough in the current price competition with China and Southeast Asia.

After an in-depth discussion of the development strategy, business model, technical requirements, and system upgrade of vendors in 2019, we focused the contents of services by maximizing cooperation, and guided and integrated effective resources on this basis. In phase 2 "implementation of project requirements" in 2020, CSC continued to optimize the fastener cloud system and increased its functions. We also assisted downstream industries by making it more convenient for them to access information needed for upgrade and transformation, and develop high value products. We also provide customers with necessary assistance for upgrade. Guidance provided to companies in lean management gained high recognition for helping enhance their competitiveness.

CSC began customizing industry services for customers in 2021, including "increasing the rate of materials obtained by Shanghsing from side trimmed scraps of hot-rolled coil," "developing materials required for high-end fasteners," "adopting high strength steel of Foxtron for motor vehicles," and "optimizing the furnace heat treatment parameters of Yuensheng." CSC also began promoting common AI and automation technologies and exclusive R&D collaboration projects, such as "RFID technology application," "coarse grained steel resistant to annealing," "hot-rolled mild steel technology with no strain trace," "developing iron making technology and management system for steel materials with high recycled content," "promoting hot-rolled 65 kg class hole expansion steel for motor vehicle," "motor vehicle steel and aluminum welding technology," "assisting the development of technology for self-bonding coating motor core pre-curing in mold," and "assisting with the visualization of process information in single rolling mills." CSC is currently actively establishing a self-bonding coating motor core industry chain, developing "hot-rolled high strength hole expansion steel for motor vehicles" and "higher energy efficiency electrical sheet for motor vehicles and motors," and participating in "steel certification by automobile manufacturers." In the future, CSC will continue to share its carbon footprint inventory experience in response to the issue of carbon neutrality and steel materials, and will recommend consultation resources to jointly face the trend of energy conservation and carbon reduction, precision manufacturing, and smart production.

Action Plan Examples: Hand Tools R&D Testing Center

There is a wide range of requirements for industry upgrade. CSC integrated four action plans, namely "Promotion of Industry 4.0," "Development of Core Technologies," "Upstream and Downstream Collaborative Development," and "Development of an Industry Service Team," in which the development of core technologies imitates the OIP of TSMC to develop CSC's TSP (Technology Service Platform), which is implemented with "one platform multiple centers." The "one platform" refers to the TSP established by CSC for product applications, "multiple centers" refers to connections to external R&D centers in each field based on the concept that CSC's resources are limited but external resources are unlimited. This allows the traditional steel manufacturing industry to increase product value, and develops Taiwan's high-end manufacturing supply chain system. CSC initially focuses on the development of fasteners, hand tools, auto parts, and EV motor industry chains.

CSC began implementing the hand tool product improvement plan in 2015. Domestic companies focus on target products and set technical indicators for improvement and innovation in hand tool products. Three hand tool products are selected for each phase, and the nine products from three phases as of the end of 2020 achieved good results, such as: obtained 9 hand tool product patents, and developed high torque box spanners and high torque long service life screwdriver bit, increasing the selling price of products by approximately 30%. Recently, CSC increased the torque performance of domestically produced ratchet wrenches from 750 N-m to 1,000 N-m, matching that of the best products in the world. Cooperating companies successfully made breakthroughs in many technology bottlenecks in the different phases of the project. Under the expectations of hand tool companies, CSC strengthened its alliance with Taiwan Hand Tool Manufacturers’ Association, Metal Industries Research & Development Centre, and Corporate Synergy Development Center, and established the Hand Tools R&D Testing Center in 2019. The center will learn from FGW and VPA and provide localized services for the industry chain from hand tools R&D, testing, to certification. The Hand Tools R&D Testing Center will solve problems proposed by the industry, and help companies catch up with the performance of high-end products worldwide, building a professional image for self-owned brands. After over two years of operations, the center successfully combined resources of the government, companies, and CSC in developing common technologies for hand tools, such as advanced AI heat treatment technology, forging forming CAE simulation, and steel metallography AI identification technology. The center has established a database of heat treatment characteristics of CSC products, forging ability, and metallography analysis data, providing downstream customers with a wider variety of steel process technologies. Furthermore, the R&D Testing Center also provides companies with a variety of testing services, application for government guidance projects, and process matchmaking, guiding the entire hand tools industrial cluster to become more closely connected, while improving technologies of the hand tools industry to become higher quality and higher value.

For more details [Upgrading Steel-using Industries]