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Future Development

Brand Marketing and Globalization

 

From Acquisition to Integration , FFG created a diversified business conglomerate and is heading toward becoming the world's largest machine tool brand
From acquisition to integration, FFG creates a diversified business conglomerate and progresses toward becoming the world's largest machine tool brand

 

FFG was founded in 1979 as an agent for a Japanese steel and construction machinery company. In 1984, FFG started its manufacturing business. In 1985, FFG established the Machine Tool Department and started manufacturing. Through M&A and integration, FFG became the biggest CNC machine tool group in the Greater China Region. Currently, FFG has 96 companies in the world, two of which are publicly traded on the Taiwan Stock Exchange, and one is publicly traded on The Stock Exchange of Hong Kong. FFG is comprised of three divisions: Machine Tool Division, Industry Equipment Division, and Green Energy Division. Among these divisions, the Machine Tool Division plays the most important role, contributing more than 40% of total revenue.

 

Chairman Chu insists confidently that FFG maintains good operational and financial standings. In order to pursue maximum returns for customers and employees, and reduce operational costs, FFG would never merge easily using loans to expand the group scale.

 

In recently years, recessions and rapid industry changes brought many enterprises to the verge of bankruptcy or liquidation. FFG, however, regards customers and employees as the core value of the business. FFG associates with high corporate mergers and acquisitions through a unique vision which favors keeping the original work team and staff from the merged enterprise. Many enterprises that faced bankruptcy began turning a profit thanks to FFG's production management and business structure adjustment. Moreover, FFG does not resell enterprises easily because we believe in having a responsible and sincere attitude toward customers and employees.

 

With the philosophy of “earnest and responsibly sustained operations”, Mr. Chu stresses FFG's strategy is to take merger integration to retain corporate talent and brands. A lot of time and cost is required to establish brands, distribution channels and businesses. Moreover, only interdisciplinary talents from various fields can make merger and acquisition plans move forward and obtain more brands in FFG. Thanks to his expertise, Mr. Chu is known in the industry as “the king of mergers and acquisitions” or "the merger and acquisition magician”.

 

As an example, FFG’s Machine Tool Division has 37 brands and 50 manufacturing bases around the world. Through local management systems, they have established coherence within enterprises. Mr. Chu stressed that the brands of FFG utilize market segmentation externally, and mutual cooperation internally, to achieve diversification.

 

Through the integration of machine tool manufacturing enterprises and the combination of talent, R & D, equipment and marketing, FFG realized the complementary advantages of product resource and various enterprises to meet the needs of different customers. This includes integrating the Machine Tool Division, Industry Equipment Division, and Green Energy Division to maximize the benefits of the group. FFG expanded globally and set up production bases worldwide with success in local manufacturing and marketing. China has a huge domestic market and became the world's biggest consumer of machine tools. China consumes 1/3 of the world's machine tool production, and the turnover of one province is equivalent to that of most countries. FFG's strategy in mainland China is to operate the business in all 30 provinces as if they were 30 countries. Although the current price of raw materials has risen, and international exchange rates fluctuate, FFG still succeeds in reducing costs and obtaining stable profits by reducing inventory with suppliers and improving production management. As far as future developments are concerned, Mr. Chu emphasized that talent is still the key to the success of the enterprise. In this way, FFG cooperated with Hangzhou Vocational and Technical College to set up Fair Friend Institute of Electromechanics which can educate and develop 500 professional talents to meet the needs of business every year. Moreover, Fair Friend Institute of Electromechanics is a part of the group's business and is included in the group's overall planning and development strategy for globalization. FFG is entering the growing green energy market (i.e., solar conductive adhesives, LED lighting, and other green energy industry products) through acquisitions and joint ventures. This is done in order to make the Green Energy Division one of the main business divisions together with the Machine Tool Division, PCB Division and Electronic Division. In the automobile market, FFG is one of seven enterprises in the world that is approved by the automobile industry as a supplier for turnkey factories. FFG is the only enterprise in the Greater China Region that received this approval.

 

FFG expanded globally and set up production bases worldwide with success in local manufacturing and marketing. China has a huge domestic market and became the world's biggest consumer of machine tools. China consumes 1/3 of the world's machine tool production, and the turnover of one province is equivalent to that of most countries. FFG's strategy in mainland China is to operate the business in all 30 provinces as if they were 30 countries. 
 
 
Although the current price of raw materials has risen, and international exchange rates fluctuate,  FFG still succeeds in reducing costs and obtaining stable profits by reducing inventory with suppliers and improving production management. As far as future developments are concerned, Mr. Chu emphasized that talent is still the key to the success of the enterprise. In this way, FFG cooperated with Hangzhou Vocational and Technical College to set up Fair Friend Institute of Electromechanics which can educate and develop 500 professional talents to meet the needs of business every year. Moreover, Fair Friend Institute of Electromechanics is a part of the group's business and is included in the group's overall planning and development strategy for globalization.
 
 
FFG is entering the growing green energy market (i.e., solar conductive adhesives, LED lighting, and other green energy industry products) through acquisitions and joint ventures. This is done in order to make the Green Energy Division one of the main business divisions together with the Machine Tool Division, PCB Division and Electronic Division. In the automobile market, FFG is one of seven enterprises in the world that is approved by the automobile industry as a supplier for turnkey factories. FFG is the only enterprise in the Greater China Region that received this approval.
 
 
FFG expands its global market pragmatically. In the future, FFG will continue to expand machine tool enterprises in Europe, South Korea, India, and more through mergers and acquisitions. FFG will also expand factories in the Xiasha Industrial Campus and Jiangdong Industrial Campus. Mr. Chu expects FFG’s brand will become number one in the world as it moves confidently down the road to excellence.