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Shanghai Tung Hsing Technology: steady growth through diversified markets

News International-French

21 Feb 2011

Led by its founder, Shanghai Tung Hsing Technology continues to pursue the growth it started fifteen years ago. The processor relies on its robust technical skills and market diversification for its development in a highly competitive sector.

The company’s founder Stanley Yen sums up the company’s credo in four words: integrity, quality, service, and execution. While all companies tend to vaunt their corporate goals, Mr. Yen really seems to put the company’s mission statement into practice in his field.


A solid foundation

Fifteen years after it was created in October 1994, Shanghai Tung Hsing Technology is on solid ground as it continues its steady development. Chairman Stanley Yen is an entrepreneur to the core and, thanks to his shrewd business management, is now in a position to choose his own customers.


The company specializes mainly in the design, manufacture, sale and installation of fibre-reinforced plastic (FRP) products. “Shanghai Tung Hsing Technology combines its considerable design and manufacturing experience with an “advanced management” mode of operation. The company obtained the ISO 9001:2000 quality management system accreditation and the ISO/TS16949 certification in April 2006, and holds a large number of national patents,” says Michelle Yen, Special Assistant to the President. The company has a staff of 250 and an 8,000-m² building sited on 41,806 m² of land, with more available nearby if necessary.


A forceful corporate strategy


To promote his company, Mr. Yen highlights their strategy of high quality for reasonable and competitive prices and of never sacrificing quality for price. The company also strives for maximum responsiveness, a quality that customers expect of their partners.


Delivering their steel and FRP precision moulds within the most efficient time frame is therefore an absolute priority, in order to shorten the product development period for its customers. The company has set a 7-day timeframe for prototyping. Reliability is also an absolute priority. To provide optimal solutions, Mr. Yen has also deployed strong capabilities in technical integration.


Production facilities

The company uses processes like compression moulding (SMC, GMT, etc.), resin transfer moulding (RTM), hand lay-up, and resin infusion moulding. Mr. Yen has put together a reliable team of technicians under an American technical director. The plant’s Research & Development Centre provides on-thespot technical consultations and instructions.




JEC Composites Magazine: Which industry is experiencing the fastest growth?

STANLEY YEN: Our feeling is that the railway and automotive sectors will grow the fastest. The Chinese government bases its position on infrastructure development on the potential growth of the railway industry.


As for the automotive market, it is one of Tung Hsing’s priorities and we have sustainable business in this area. Demand in the Chinese automotive market is barely being met, and it is growing. This situation is likely to continue.


JCM: Do you plan to invest soon? If so, in what area?

S. Y.: We are planning to raise another US$2.5 million to increase our total capital to US$8.5 million by the third quarter. The funds will be used mainly to expand our SMC production line and produce more light-pole equipment so as to accommodate more orders.


JCM: Will you concentrate your efforts on your domestic market, or are you also planning to export?

S. Y.: We attach great importance to the domestic market, but we are also targeting expansion into the export market, where there is a niche for our products (e.g. our FRP lighting poles and various other labour-intensive, lowvolume items).


We currently have 4 production divisions, including hand lay-up, SMC compression moulding, SMC compounds and FRP light poles. The hand lay-up unit is focusing on a wide range of customized products. Based on our good reputation, strong R&D results and good quality, this unit benefits from a number of good business referrals for local and overseas markets, hence it enjoys steady growth. In terms of customers, the SMC compression moulding unit focuses mainly on the domestic automotive market. Our advantages in the area of SMC compounding are our consistent quality and competitive prices. We also have over 34 years of production skills and experience in manufacturing FRP light poles. We have a new fabrication method and are aiming to achieve strong growth in both local and overseas markets.


JCM: What are your goals for the future?

S. Y.: Currently, our primary focus is FRP light poles. With our new fabrication method, we can bring down manufacturing costs significantly to make our light poles competitive in both price and quality. Therefore, our short-term target is to promote and expand production of our FRP light poles, both for the local Chinese market and the overseas market.


More Information
Business items:
  • FRP Light Pole
  • FRP Parts for Micro car / Caravan / Kit Car (Hand lay-up)
  • Compression Molding Auto-parts (SMC, GMT…etc.)
  • FRP Analyser House / Cabinets / Enclosure
  • FRP Form Plate for Clean Room
  • FRP Floating Objectives
  • FRP Telecommunication Shelter
  • Glass Fiber Reinforced Gypsum (GRG)
  • SMC
  • Other FRP Products


The main equipment comprises five presses (including a 1,800-MT and an 2,000-MT moulding press), a paint line and a CNC processing centre for quick and accurate development of prototype moulds. Shanghai Tung Hsing Technology uses the centre to make its own moulds, thereby gaining some autonomy. The company also does its own SMC compounding, 20% or more of which was marketed to other processors last year.


Diversified markets

To develop his company, Mr. Yen has diversified his customers and markets.


The company works preponderantly for the automotive sector, with compression moulded auto parts (front panels, air deflectors, fenders, bumpers, side wind deflectors, side skirts, front and back bus walls, etc.), but other sectors could fill in if necessary.


These other markets include hand lay-up FRP parts for micro car, caravan and kit car; FRP analyser house, cabinets and enclosures for control systems used in chemical plant, power, communication and industrial sectors; FRP light poles, which are suitable for street lighting, and especially suitable for highly corrosive environments such as seacoast roads, industrial and chemical areas due to their excellent weather resistance; FRP floating objectives; FRP telecommunication shelters; glass fiber reinforced gypsum (GRG); FRP compartment table and window frames.


Growth engines

Even if the domestic market is growing fast, the company started to take an interest in export a few years ago to avoid dependence on that one market. Today, 25% of its business is for export, including a broad range of products that include Light pole, high dome, Air Deflector, FRP shroud used on wind turbine and complete car bodies (this last product is for a French company that specializes in micro-cars).Over the past few months, the company’s technical teams have been working on a new pole fabrication process. It already has a foothold in that sector with its standard FRP light poles and courtyard light poles. The Chinese market is vast and very open. For the moment, the only domestic regulation that exists for these products is a requirement to resist wind speeds of 40 m/s. Shanghai Tung Hsing Technology’s new pole can withstand winds of 60 m/s, and it is also compliant with the American (ANSI) and European standards. At this stage in the development, Mr. Yen didn’t want to say more on the subject, but he appeared very confident in the potential of this new product. Mr. Yen mentioned that price wise is very competitive.