10 Aug 2018

Started Operations of New Factory in Taiwan

Okuma Corporation (Japan), started operations of a new factory built by Tatung-Okuma Co. Ltd. of Taiwan (hereinafter, TOC) in Yingge District, New Taipei City, Taiwan, in August 2018.

■ Background of construction of the new TOC factory

Demand for machine tools continues to expand globally with the progress of economic development in emerging countries and with production innovation spreading throughout the world.

Based on the idea of "Made in Japan to Win Around the World," Okuma has promoted the redevelopment of its factories in Japan. In May 2013 with a smart factory designed fo “self-contained start-to-finish production,” at the head office (Oguchi-cho, Niwa-gun, Aichi Prefecture), Okuma has been operating DS1 (Dream Site 1) since May 2013 and DS2 (Dream Site 2) since March 2017, using high-efficiency and high added-value production with the advances of IIoT. Subsequently, in August this year Okuma began construction of the Kani 6th Factory (K6) in order to develop a smart factory at our Kani Plant (Kani City, Gifu Prefecture).

Okuma premium products such as our double-column machining centers, 5-axis machining centers, multitasking machines, will be performing highly efficient production in Japan's smart factories.
On the other hand, in order for Okuma to grow even more globally, we need to expand our customer base worldwide, including in the emerging Asian countries. TOC is to produce a global strategic machine for this purpose.

At TOC, we manufacture GENOS brand lathes and vertical machining centers that provide the basic functions and performance of machine tools, and have high quality at affordable price levels, targeted to promoting sales in Asia and other global markets.

The former factory of TOC aged with time, and since it was small, expansion of production capacity and high efficiency became an issue. Therefore, we decided to construct a smart factory that utilizes IIoT at the new site, aim for high efficiency production and increase production of GENOS brand products.
In addition, we opened a showroom adjacent to the new factory and are displaying various premium Okuma products such as 5-axis machining centers, multitasking machines, and GENOS products produced at TOC to expand sales in Taiwan and the Asian market.

■ Outline of the New TOC Factory

Location No.14-2, Donghu Rd., Yingge Dist., New Taipei City 239, Taiwan
Total floor area
14,300 m² (1.8 times the old factory)
1st floor: Machine shop, assembly shop areas
2nd floor: Unit assembly, kitting areas
Office, showroom: 1,760 m²
Machines13 (9 previously)
ProductionLathes, vertical machining centers
CapacityMonthly production: 300 units (1.5 times the previous factory)
ShowroomMachines: 8 (5-axis vertical machining centers, etc.)
InvestmentNT$ 625 million (approximately JPY 2.32 billion)

■ Objectives of the New TOC Plant

1. Increase assembly production capacity to 1.5 times the old plant
The total floor area of TOC's new factory has expanded to 14,300 m², 1.8 times the old factory. By strengthening processing equipment and promoting automation, we will increase parts processing capacity by 5 times and expand in-house parts processing.
Implement Okuma production methods by,
  • synchronizing machine parts processed at TOC's new factory with assembly processes
  • organize parts & units necessary for machine assembly according to assembly starts, and strive to greatly improve assembly efficiency.
Within a single factor, we will build a consolidated production system to manage parts processing as well as the assembly operations, and expand production capacity by increasing production efficiency.

■ Production capacity will be increased to 1.5 times (200 → 300 units per month).

2. To be an evolving factory
At the new TOC factory, we will utilize our Connect Plan, which is an Okuma product, packaged with our smart manufacturing technology.
We will connect machining facilities in the factory with Connect Plan, monitor the operation status and production progress of the machines, analyze the cause of operation stoppages, and improve the machine utilization rate. In addition, we will visualize the progress of assembly work and make it a factory that evolves day by day by being constantly engaged with improvement activities.
3. Strengthen sales in the Taiwan market
Taiwan has prospered because of its craftsmanship manufacturing since ancient times, and it is a promising market for machine tools. We will make effective use of the newly installed showroom, strengthen sales, technology and the service system, and promote sales expansion in theTaiwan market.

■ Overview of TOC

Company nameTatung-Okuma Co. Ltd.
ExecutivesKinya Komura, CEO (an Okuma Director), Norio Nakashima, General Manager
LocationNo.14-2, Donghu Rd., Yingge Dist., New Taipei City 239, Taiwan
OwnershipOkuma Corporation at 51%, Tatung Co. at 49%
Capital172 million NT$ (as of August 2018)
EstablishedJuly 1997
Business descriptionManufacture, sale and service of machine tools
  • TOC’s new factory
    TOC’s new factory