ECFA fuels aluminum bike rim manufacturer to expand locally

Tainan, Sept. 8 (CNA) World leading aluminum bicycle rim manufacturer Alex Global Technology revealed plans to use the cross-strait Economic Cooperation Framework Agreement (ECFA) to build its business empire in Tainan City, southern Taiwan in a special interview with CNA reporters on Sept. 1.

Unlike many Taiwan enterprises who have moved factories to China, this company is determined to stay in the country.

Asked if the company has benefited from the inclusion of 17 bicycle components and products in ECFA's early harvest list that took effect in January 2011, Morris Wu, special assistant to the company president, said "definitely."

One of the company's products, non-motorized bicycle rim and wheel spokes, is listed in the early harvest list. During the initial implementation of ECFA in 2010, tariffs for products in this category was 12 percent. By 2011 the tariff was cut to 5 percent, and will be completely waived by 2012.

"Compared with 2010, we've seen turnover in China triple," Wu said. "We estimate in 2011 we will be able to save up to NT$40 million (US$ 1.37 million) in taxes, which is why we plan to continue recruiting more than 100 staff this year."

As a result, the company is shifting its main export market from the United States and Europe to China and expanding its presence there by setting up 36 shops to market bicycle components and establishing eight provincial offices to help market and produce bicycle rims.

Despite growing exports and difficulties in recruiting high-tech talent, especially skillful lathe operators, the company has no intention of moving and has been expanding in the city's Shanshang District where it was established in 1992.

"Almost all our employees are local people from Shanshang, Danei, Shinshih, Shanhua, and Yongkang districts and areas. Some are even married couples," Wu added.

"Our president (Alex Chen) does not like headhunting. Instead he prefers training employees from scratch and likes employing local people," Wu said. "It doesn't matter if the person knows noting about the business. As long as they are willing to learn, he is willing to teach."

The company is planning to grow its workforce to 400-strong, and will be building a new marketing, research and development department, senior sales director Jo Lin said.

"Lathe operators need to be highly-skilled, and skillful operators are quite hard to find," Lin said. "We are still looking for lathe operators this year, and plan to cooperate with schools."

"Since the company began its recruiting campaign, many middle-age Taiwanese have shown interest in returning to Tainan to work because they can live with their parents and still get a decent job," said Pearl Chung, a staff member from the marketing department. (By Tsai Su-Jung, Chen Hung-chin and C.J. Lin) Enditem/ly

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