Page 39 - TTG-Taiwan Transportation Equipment Guide (TTG)-2021-09 Edition

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Supplier News

L
LC Fuel Tank’s long-term partnerships ease C Fuel Tank’s long-term partnerships ease

impact fr
impact from shortages and rising pricesom shortages and rising prices

LC Fuel Tank, based in Taiwan, was undeterred On the other hand, making sure deliveries are
by the outbreak last year and continues to maintain made on time can be difficult when the world is seeing
the same pragmatic attitude throughout 2021. As a shortage of shipping containers. Chan said while
Taiwan saw its own localized spread of COVID-19, container shipping spaces are harder to anticipate, the
the company imposed its own rules to minimize social company has been working closely with clients to snag
interactions and maximize business operations. containers despite the turbulent prices.

For instance, the company divided its office space As LC Fuel Tank has more than 40 years of
into four areas to minimize close-distance interactions, experience in the industry, they can offer mold
and was able to ensure sufficient social distancing on development experience and maintain a vast inventory
factory grounds due to sufficient space. of its many various molds, helping clients save on
development costs.
In terms of cascading supply impacts brought on
by the pandemic, LC Fuel Tank General Manager During the pandemic that disrupted the global
Chan Yu-peng said they were able to weather issues production and supply chain, LC Fuel Tank's
such as rising prices for raw materials and shipping. sophisticated experience has proven invaluable to their
Chan reported a 25% increase in prices for cardboard clients, allowing them to trust the company with their
boxes and shortages as well. They were able to orders amid an unprecedented climate. For example,
continue maintain their own deliveries by over-ordering many of their clients had made orders beyond their
cardboard boxes for a stable inventory. usual volume, which not only ensured capped-out
production lines on LC Fuel Tank’s side, but also
Steel plate prices have also risen as well. As LC longer delivery times. Chan said some buyers will need
Fuel Tank requires over 200 tons of steel plates per to wait six months before seeing their orders shipped.
month, the company had to notify their international Like many other companies, Chan said uncertain
buyers of their plans to raise prices twice in a year. shipping schedules have definitely made it harder for
Negotiations are carried out beforehand to ensure businesses to ensure on-time delivery.
clients are all on the same page, Chan said.
Flexible and Professional
Raw rubber materials are also in shortage, Chan
said, but since the company has cultivated a long-term LC Fuel Tank offers mold equipment for more than
partnership with suppliers, they were able to acquire 1,000 toolings for fuel system products, making it the
steady supply and competitive prices. most globally competitive company among automotive
fuel tank suppliers and raising the threshold incredibly