SOCO’s New Factory in Nantou, Taiwan
Media 2020/02/13
SOCO has successfully acquired a leading local laser cutting machine factory in Russia and plans to introduce the technology to Taiwan. The new plant in Nangang covers an area of 3,000 square meters and is expected to start its operations in 2022.
SOCO Machinery was founded in 1979. The company has a capital of more than NTD 600 million. Currently, it has three production bases: in Taichung Precision Machinery Park, Taichung Industrial Zone, and Zhangjiagang, Mainland China, for a total of 500 employees. Last year’s revenue was nearly NTD 2 billion. The scale is small, but it is the number one manufacturer of pipe benders and circular sawing machines in Asia and the second largest in the world.
World-renowned automobile manufacturers such as Toyota, Honda, Hyundai, GM, etc., rely on bending and pipe cutting equipment produced by SOCO. Without this equipment, many important components, including exhaust pipes and hydraulic pipes, will probably not be delivered on schedule. SOCO's impact and importance are clear in the assembly and listing of automobiles, and in the chain supply.
In addition, SOCO’s customers also cover fitness equipment, aerospace, furniture, healthcare, electric vehicles, etc.
In order to be globally competitive, SOCO launched an overseas merger and acquisition plan as early as 15 years. SOCO adopted a brand double-brand strategy to jointly operate co-brands. The first co-branded company was the British pipe bending machine manufacturer "Langbow": the partnership allowed SOCO to successfully enter the UK market and establish a beachhead in Europe.
In 2016, SOCO formed an alliance with Herber, an established Swedish pipe bending equipment manufacturer founded more than 60 years ago. Through a shareholding method, SOCO and Herber formed a dual-branded entity. Through this alliance, SOCO will further expand the pipe bending machine market in Sweden, Germany, and Eastern Europe.
In 2018, the US-China trade war raged, but SOCO's revenue continued to grow by 14% against the trend, while the market in mainland China decreased by only 5%. General Manager Kyle Lo said that this was possible thanks to the group's policy of decentralizing industries and customers. Last year, the automotive industry was not prosperous, but SOCO saw substantial growth in aerospace, fitness equipment, and healthcare.
SOCO's performance has grown for five consecutive years. Last year, it emerged as a new force in the declining machinery industry. Looking to the future, Frank Lin said that SOCO is optimistic about the prospects of the electric vehicles industry, healthcare, and sheet metal laser cutting market. It is estimated that in 2022 SOCO will challenge a 3-billion NTD revenue and promote the stock listing.
