Shinshowa, Shunan Start Drawing Tube OEM Supply

Tokyo based precise tube maker, Shinshowa Kokan Co., Ltd. will start joint marketing with Taiwanese drawing tube maker, Shunan Hwa Industrial Co., Ltd. for Japanese users in the month. Shunan Hwa will supply Shinshowa Kokan brand products to automobile related users in Taiwan and Southeast Asia. Shunan Hwa will expand the monthly output by 50% to 1,500 tonnes with the original equipment manufacturing. Shunan Hwa established Vietnamese subsidiary in July 2004 to supply tube for shock absorber and power steering for automobile and motorcycle makers. Shinshowa Kokan started the technical support 5 years agreement for production and quality control with Shunan Hwa in July 1989 and they signed the fourth agreement through 2010 in September 2005. Shinshowa Kokan provides technical support to Shunan Hwa’s Vietnamese subsidiary. Shinshowa Kokan plans OEM supply through Shunan Hwa to automotive users in Taiwan and Southeast Asia as a part of the further tie-up. They start joint marketing for Japanese users in February and already get higher order and inquiry. Shunan Hwa’s Vietnamese subsidiary just finished expansion of plant building for stock yard. The firm plans expansion of production facilities to expand the output to monthly 1,000 tonnes from current 500 tonnes mainly for motorcycle suspension and vehicle suspension parts. Shinshowa Kokan and Shunan Hwa establish global supply network in Japan, Taiwan and Vietnam. They try to shift from materials to processed products to meet higher automobile demand in China and Southeast Asia after hey singed comprehensive partnership agreement from purchase to production and sales in the end of January 2007.