[1] Advantages of Taiwan water purifier equipment factory

Being an OEM for European and American brand factories is still a major feature of most of Taiwan's manufacturing industry, which is also a strength of Taiwan's water purification equipment suppliers who, not only have production technical capability, but also have good quality awareness, as well as the ability to make products that are better and cheaper. Additionally, they are more willing to invest in production equipment and laboratory reliability testing equipment. These factories also have a different advantage from those in other countries, which is to be responsible: "If they make a promise, they keep to their promise " and, although those factories costs are increasing, they are still the first choice for major European and American manufacturers.

The writer has been in the water purifier equipment OEM industry for over 30 years and is more familiar with this industry than many. The writer has used three ccc codes (Chinese Commercial Codes) for water purifiers to find the top ten exporters on Taiwan’s Bureau of Foreign Trade’s "Exporter/Importer Management System" website, where the advantages and disadvantages of each factory are described in detail, for the reference of brand owners who intend to select Taiwanese factories as partners.

1. Electric household water purifier  ccc code：84212110

2. Other water filtration or purification equipment  ccc code：84212190

3. Filter cartridge  ccc code：84219910

[2] Analysis of the global water purifier industry

There are several countries in the world with particularly high demand for RO (reverse osmosis) water purifiers. In Europe it is Spain, followed by Italy. In Africa, and part of the Middle East, it is Egypt. In Asia it is Vietnam. In the Middle East it is Iran, followed by Dubai. The market for RO reverse osmosis water purifiers in Turkey, which spans both Europe and Asia is also quite strong.

Turkey is a major market for RO reverse osmosis water purifiers, because the demand for them is quite large, and each water purifier must be equipped with a pressure tank. Turkey's Fil-Tek company has also invested a lot of money in the production of RO pressure tanks, filter cartridges, filter bottles, pressurized motors, and other key components; striving to achieve a one-stop production method, while working towards low-cost methods, indicating that, in the future, RO reverse osmosis water purifiers and water purification equipment will become a more and more serious business. What's more is the fact that various importers in this country have been gearing up for more than a decade to transform their import businesses into manufacturing plants by installing production equipment, no longer making Taiwan special.

Vietnam, as mentioned previously, is a country with an endless market for RO reverse osmosis water purifiers and water purification equipment. America’s AO Smith, South Korea’s Coway, and others, have long been in the Vietnamese market. At present, these Vietnamese manufacturers have dual identities. They are both importers of water purifiers and manufacturers of home appliances, roof tanks, etc., having first imported entire systems from mainland China and Taiwan, slowly entering their own assembly mode, and importing key components from Taiwan. It is definitely worth mentioning that the scale of these manufacturers' parent companies’ factories are not small, and it is a step by step penetration into the field of RO reverse osmosis water purifiers, which is worthy of note.

In recent years, prices in the RO reverse osmosis membrane market have been fiercely competitive, and prices have been quite high. If one day the large flow of RO membranes also hit a price comparable to ordinary ones,Taiwan and China's RO pressure storage tank factories will be impacted and will suffer greatly.

[3] List of top ten water purifier equipment factories in Taiwan 2020 [Sorted by company websites - English]

1.Advantages of Taiwan water purifier equipment factory

2.Analysis of the global water purifier industry

• 3.1 C.C.K. Kouw Pinnq Enterprise Co., Ltd
• 3.2 Easywell Water Systems, Inc.
• 3.3 Fluxtek
• 3.4 Kemflo Intl Co Ltd
• 3.5 Organic Filter Co., Ltd.
• 3.6 Puricom
• 3.7 Runner Group
• 3.8 Global Water Solutions
• 3.9 Yen Sun Technology Corp.

   4. Comparison table of the top 10 foundries of Taiwan's water purifier equipment in 2020
   5. Conclusion

3.1 C.C.K. Kouw Pinnq Enterprise Co., Ltd.

https://reurl.cc/7XRdld

C.C.K. Kouw Pinnq has long been involved in the production and assembly of household RO reverse osmosis water purifiers. This company has one of the "competitive advantages" mentioned by McPorter: "low cost" has been done quite thoroughly and methodically for all key components of RO reverse osmosis pure water machines, from the booster motor and pressure water storage barrel through to injection, assembly, and so.

C.C.K. Kouw Pinnq has been producing quick-release couplings for a long time and makes good use of special machines to inject, assemble, and test quick-release couplings, which provides a considerable advantage in cost in early stages.

The General Manager of C.C.K. Kouw Pinnq, Mr. Tsai is willing to spend money on NSF product certification. In addition to receiving NSF certification for a series of quick-release couplings, C.C.K. Kouw Pinnq have also received NSF certification for both traditional filter bottles and PE pipe fittings. The two sons of General Manager Tsai have also worked in the company for many years, and the succession by this second generation will officially proceed soon.  

3.2 EASYWELL

www.easywellwater.com

What makes this factory different from its peers is its responsible attitude:

1. US $ 1 million of global product liability insurance is purchased every year to protect customers' procurement rights.

2. When I find a quality concern, I will inform the customer every time and recall products in transit, as well as recall product already with the client.

3. ISO-14001 international environmental protection certification obtained in 2001 (19 years ago), in order to be responsible for the environment.

4. the factory will be liable for compensation for any product quality problems or negligent service.

The company specializes in dechlorinated showers, water purifiers, and RO reverse osmosis water purifiers. It has developed, designed, molded, and produced up to six models of dechlorinated showers. In fact, it can be said that, in the dechlorinated shower industry in Taiwan the company and its factory are the most professional.

About 50% of Easywell’s revenue comes from RO reverse osmosis products, which are mainly supplied to assembly plants in Europe and the United States.

This OEM has also spared no effort in the research and development of key components of Ro systems, with up to 80% of components designed, plastic injected, assembled and tested in house... Even though it costs NT $ 10 million or more a year to develop a mold ... there is little reliance on others and the key components are injected, processed, produced, assembled, and inspected in the company’s own factory, so that people can rest easy and sleep at night.

This company knows how to use its strengths and stands on the shoulders of giants when applying for and winning a number of national awards and government recognition:

1. The 17th Rising Star Award (the first in the industry)  

2. Brand Star Award from the Ministry of Economic Affairs

3. SME Innovation Research Award

4. Small and Medium Business Administration Award

In order to strengthen the quality of this factory, the quality of each shipment received by customers is consistent:

1) Although a product laboratory was set up at the establishment of the company, February 2020, saw a total of NT $ 17 million yuan spent on the building of another laboratory and on the purchase of test instruments and equipment, in order to continue increasing the reliability of various laboratory instruments and products in the laboratory. Test equipment, bacteria detection, etc.

[2] It obtained ISO-9001 international quality assurance system in 1991, which it has held ever since; using QCC quality control circle, TQM all-member quality control, etc. to ensure quality becomes ever more stable.

[3] They also have many certifications in their products:

1. A number of products (gooseneck faucet, refrigerator special filter ...) have obtained NSF product certification

  https://reurl.cc/yy5a8D

2. Four products have won the provincial water mark of the Ministry of Economic Affairs

3. Awarded Taiwan Excellence Award for five consecutive years

4. A total of 54 products have passed CE safety certification.

5. Obtained 91 patents worldwide.
 

3.3Fluxtek

https://reurl.cc/E7G6em
Fluxtek is the second company in the water purifier industry to be listed on the stock exchange. The company vigorously develops its brand within the Taiwan water purification equipment industry.

Source: https://ppt.cc/fN0scx

The company established a joint venture with HIDRO Water of Spain in 2013 to set up "European Fluxtek K-Europe" but, according to Mr. Hiber partner of K-Europe Spain, due the fierce competition in the Spanish water purifier market, 100% of the shares in the Hidro water and fluxtek, K-Europe's European partnership were sold to Culligan by the end of 2018.

The company applied for and received a government subsidy of NT $ 6 million from the processing export zone of the Ministry of Economic Affairs to form a "Taiwan Water Purification Equipment Alliance W-Team" with 10 water purifier component suppliers in the south. Chairman Lai's macro view was: "I want a fleet, not an aircraft carrier."

Source:  https://ppt.cc/fNoEEx
 

3.4 Kemflo Intl Co Ltd
https://reurl.cc/mnlzR9

Kemflo claimed in an interview with CommonWealth Magazine that it is the world's largest water filter equipment OEM. In addition to Taiwan, it has factories in Nanjing, the United States, and Australia. Most of the company's water purification equipment production, research and development, and sales are in Nanjing in China and in Pingtung in Taiwan. Chairman C S Lin began to feel at ease during the interview with CommonWealth Magazine, and turned to the development of his own brand "Come For Love".

Source: CommonWealth Magazine

This company has a long history in the OEM business and was established in 1978. The rest of the industry is envious of Kemflo because, apart from attending the Shanghai Aquatech Water Treatment Exhibition, they rarely attend any other exhibition or produce advertisements, but their OEM customers belong to global brand manufacturers, such as: GE Whirlpool ...

The factory is very willing to invest in plant equipment and, long ago, invested a lot of money in building an automated warehouse and adopting the enterprise resource planning management system of the large international ERP factory "SAP".

The group employs approximately 1,800 people. This OEM is also among the top 1,000 manufacturing plants in Taiwan. (Source: 2016 Kemflo's official website)

3.5 Organic Filter Co., Ltd.
https://reurl.cc/GV4AdA

In the beginning the Organic Filter Co., Ltd. focused on assembly and OEM of RO reverse osmosis water purifiers. However, in the past few years it has transformed into a professional manufacturer of quick-release couplings, with a monthly production capacity of up to one million units.

The owner of the Organic Filter Co., Ltd is also willing to spend money on production equipment, and a large number of special machines are used to produce quick-release joints to reduce labor costs. When compared to prices in mainland China, the company remains competitive.

This may be because several Taiwanese manufacturers have invested in the production of quick-release couplings. Under fierce competition between hundreds of companies, John Guest, an indicator company that produces quick-release couplings in the United Kingdom, was sold to RWC in 2018.

The Organic Filter Company is quite low-key, so when searching on the Internet in real time it is difficult to know its current situation.

From the 104 Human Resources Bank of Taiwan the author ascertained that the company currently employs about 130 people.

https://reurl.cc/jdLzEq

3.6 Puricom

https://reurl.cc/NjqOE5
Puricom initially produced the booster motors for RO water purifiers, before increasing its business projects to develop into parts manufacturing and the assembly of RO water purifiers.

Puricom was the first company to develop a brand in the water purification industry. A long time ago, Puricom formed a strategic alliance with the Spanish Ionfilter company and established the Puricom-Europe brand in Spain, which successfully created a B2B brand awareness. However, in 2019, Puricom Europe sold 50% of its shares to the Kinetico Water Systems Group.

Source: http://puricom.eu/news/

3.7 Runner Group
https://reurl.cc/pdL84r

The Runner Group is another long-established OEM. Although Founded and originating from Taiwan in 1978, it moved most of its factories to Xiamen, Fujian, China in the early 1990s. It has previously manufactured plastic shower heads, faucets, and other items for most American brand factories in the area of kitchen & bath related products.

In 2010 the Runner Group and American Paragon Corporation each invested 50%, in "Bai Lin Water Purification Technology", which was established in the Runner Groups Headquarters to produce various filters, components and water purifiers for domestic water purifiers. However, within the space of a few years, the American Paragon Corporation withdrew from the cooperation agreement and established its own production plant in Xiamen.

In just a few years, Bailin water purification technology and turnover has grown tremendously, and has been catching up with the leading position of water purifier equipment.

3.8 Global Water Solutions
https://reurl.cc/KkMELR

In a CommonWealth magazine article the Chairman of Global Water Solutions said that the company is the world's largest supplier of pressure storage tanks. The advantage of this factory is that with a single product, costs can be very competitively controlled and quality is stable. This means that, with the exception of the company Aquasky, there is no other competitor in Taiwan that produces pressurized storage tanks.

However, Although Global Water Solutions has no competitors in Taiwan, the Taiwanese company Tankpro has invested a lot of money in China, and the quality of its products has been certified by many international companies; not to mention the few Chinese RO pressure barrel manufacturers. The use of fully automated production equipment makes pressure storage tanks more competitive and hotter in the market.

Although every RO pure water machine assembly plant in both mainland China and Taiwan has invested in the research and development of RO pure water machines that directly output large flows, due to the high price of high-volume RO films, there is still room for development of RO water tanks.

In 2014, Global Water Solutions was selected as a reported OEM by CommonWealth Magazine, the standard of which was quoted by its Chairman Lai in the magazine as: "It's good to make money, things need to be done well, and prices can be cheap."

3.9 Yen Sun Technology Corp.
https://reurl.cc/z8AOEp

Yen Sun Technology Corp. is an older but competitive company that was listed on the stock market in December 2004, and which originally specialized as a home appliance OEM:

Infrared heaters, photocatalyst air cleaners, wet tissue machines, electric fans, distilled water dispensers, and drink dispensers.

In recent years, the company has transformed to increase the manufacture of automotive fans: (vehicle cooling fans, micro fans), and to increase water filter OEM and brand development.

In 2010, " Sunpentown International Inc." ceded and sold their mainland China brand to Yen Sun Technology Corp., which then used the " Sunpentown" brand to enter the mainland's small home appliance market. This company has many domestic OEM customers.

4. Comparison table of the top 10 foundries of Taiwan's water purifier equipment in 2020

5 Conclusion

From the observation of the above we can see that Taiwan's OEMs specialize in OEM manufacturing. For the development of brands, they will always focus on B2B, and for the development of brand image and marketing channel strategies for B2C end consumers, strengthening brand organization management ... is still a major issue for Taiwan OEMs.

Compared to emerging countries with the advantage of cheap labor and rapid market development, such as mainland China, Turkey, Egypt, etc., the price advantage of Taiwan's OEMs is clearly showing signs of fatigue. In terms of product innovation, Mainland China has not let up and it is these problems that OEMs in Taiwan need to catch up with.
 

Written by: Rodger Lin (Easywell Water Purification)
You are welcome to reprint this article, but please cite the source March 1, 2020

The first visitor on the first day of the water treatment exhibition was actually a foreign trade association member, Ms Liru Gao, who was carrying out market research for the 2020 Taipei Water Show. What impressed me most was that she had done her homework before coming, saying that she had also found my blog post "The Amsterdam Water Show 2017 Report" through a Google searcg. https://reurl.cc/A1pQqd

On the fourth day of the exhibition, a lady from a Wenzhou manufacturer, named Ms Lingjian Shao, came to tell me that she had also seen my exhibition blog post, where I had gone to countries around the world to collect tap water and had taken them home for analysis. She said that she is also doing the same now. It is true that, in the words of Confucius: “Virtue is not left to stand alone. He who practices it will have neighbors.", because the inspiration and influence of these two ladies inspired me to find the time to complete this " Aquatech Amsterdam 2019 Water Treatment Exhibition Experience" report.

[1] This year is the 55^th of the 110-year-old exhibition

The exhibition has been held for 110 years as it is held every two years the advertisement on the wall poster says this was the 55^th event.

[2] The exhibition venue was reduced in size

Having attended and participated in this Amsterdam water treatment exhibition on more than ten occasions, I discovered that, this time, there was one fewer exhibition hall and many fewer exhibitors, leading me to wonder if the fevered pace for water purification equipment was over. Although the economy continues to be sluggish, this is an exhibition that is held only once every two years, therefore registration for it should have been completed two years ago. Were there so many manufacturers who could predict that the economy would be so poor after two years?

I talked to several customers about this issue, one of whose analysis that, over the years, some big world manufacturers have merged, seemed to be the most reasonable explanation.

These manufacturers include:

(1) BWT AG acquisitions

• Acquisition of ATH

(2) RWC

• Acquisition of John Guest.

(3) Kinetico

• Acquisition of Puricom Europa S.L. (Spain)

(4) Culligan

• Acquisition of Fluxtek Europe S.L. (Spain)

Therefore, the companies that have been acquired do not have to spend money to participate in the exhibition. Perhaps this is the real reason why there are many fewer exhibitors.

There were also many fewer visitors. What is the explanation for this? From the following data, we know that the number of visitors (the total number of business cards collected) to our Easywell water purification booths in past years were between 90-100 valid individuals, and at almost no time over the four days was there time to go to the bathroom. However, this year we only had 74 visitors to the booth, which was a lot fewer.

[3] Product development trend

       1 short, thin, and light

       2 smart

       3 simple appearance

[4] The exhibition organizer made the same mistake twice

This issue should also be discussed and shared as it may be possible for the organizers to discuss a way to prevent a reoccurrence. We also don’t understand why the exhibition organizers can make an almost identical mistake at two consecutive events. Perhaps it is because they have not applied for ISO-9000 quality certification, so there are no measures to correct and prevent these mistakes reoccurring!

The issue was that:

(1) Two years ago, we went to the Aquatech exhibition hall in Shanghai and found that there was no information about our company in the exhibitors’ roster. How could visitors find us? I went to the representative from Taiwan, Li Ruhu, and the solution from the Aquatech Shanghai office was the offer, which we accepted, to publish a free advertisement in their exhibitors’ list at the subsequent event as compensation..

(2) This situation happened for a second time at this exhibition. On this occassion, a longstanding British customer found our booth in Amsterdam and told us: "I couldn’t find your Easywell water purification booth listed in the exhibitors’ roster", “Wow!” was my response. I asked him how he found us. He said he found us on the organizer’s website. On the third day of the exhibition, the organizers sent two staff members to apologize. Their proposed solution was to: "Upload the Easywell products onto Aquatech's social website to enhance our exposure." I could only say, "Okay!" Quarreling was a waste of time, and would take me away from the time I had to make contact with potential customers.

[5] A few good events that were directly mentioned in the exhibition

(1) Before the end of the final day, the organizer sent a lady wearing an Aquatech uniform to distribute flyers. She was helping disadvantaged groups and was looking for exhibitors to donate exhibits and water.

(2) This exhibition was in the Netherlands and most of the exhibitors were from European and American countries. When dismantling, they paid more attention to cleanliness and order, when compared with the exhibition halls of our big brother. Of course, our exhibitors from Asia will be influenced by European and American manufacturers, and they will become more elegant.

(3) The Amsterdam city government has built a new subway station that has been completed this year. With an entrance and exit in the square in front of the exhibition hall, similar to the one in front of the World Trade Exhibition Hall in Xinyi Road, Taipei this subway is very helpful for the arrival and dispersal of people. According to our Dutch customers the subway took 10 years to complete and, because of the special geology in the area, it was common for houses to tilt and even to collapse during the construction.

(4) Little stories from the exhibition

During the exhibition, I went to talk to some companies from China. I was particularly concerned about why a company in Yuyao, Zhejiang did not come to the exhibition (Because this company had always taken particular care of me in the past).  I learned that after their last exhibition, their exhibits were not intended to be shipped back to China, nor were they reported to the conference. They left the exhibits and received a one exhibition ban as a result.

[6] Conclusion

I must remember that every time someone asks me: “What industry do you work in?” and I reply: "It is water purification.", regardless of whether the other party is engaged in industry or is at home, 100% of them will say: "That is a very promising and popular industry." Because of this belief and perception, everyone is frantically investing in this industry. The big manufacturers that did not produce or sell water purification equipment before, no matter whether high-tech, mobile phone, home appliance, marketing channels, the entertainment industry, or food producers... have all invested in this industry; most of them, have made high-priced mergers and acquisitions either with or of existing manufacturers that already have brand awareness, research and development of new products, and manufacturing capabilities. They have done this in order to enter and to get a seat at the table within the water treatment industry at the earliest opportunity.

This industry has become white hot within just a few short years and manufacturers with new technologies and new products are not necessarily guaranteed to be profitable. The profits of manufacturers maintaining the status quo can only be compressed and can even lead to a quick exit from the market.

While talking with Spanish manufacturers (with more than 40 years of history) at the exhibition, it was clear that every industry is changing fast. Rapid changes and fierce competition mean that principals are often unprepared. It is becoming ever more difficult for businesses to remain in existence for more than 100 years. Therefore, to those enterprises that are more than 100 years old we should salute the managers and workforce.

Written by: Rodger Lin of Easywell water

You are welcome to reprint this article, but please cite the source