Steelship: Building a Strong Foundation in the Steel Industry with Integrity and Vision

Table 3-17 Introduction to Steelship Co. Ltd.

   Steelship is a long-established company with over 40 years of experience, primarily engaged in steel material wholesale, known for reliable supply and high-quality service. Additionally, the company has set up a subsidiary brand, Sintai, in Chiayi, specializing in steel processing and manufacturing. This diversified business model allows the company not only to meet domestic market demands but also to expand into international markets.

Target Customers and Market

   Steelship's clients are primarily from traditional industries, including machinery, machine tools, automotive parts, bicycle manufacturing, and small hardware sectors. Since the 1970s, the company has been deeply rooted in the steel industry, maintaining many long-term partnerships. Focused on supplying high-quality steel materials, Steelship has been expanding into international markets. It has achieved TS 16949 certification within the automotive parts supply chain, qualifying it to provide parts required by major brands.

   Steelship's target clients are companies that prioritize product value and quality over price. These clients value product stability and added value, expecting high professional standards from their suppliers. As market demands evolve, some clients have shifted from traditional mass production to a focus on specific product applications. In response, Steelship has begun offering small-batch, customized services, establishing a competitive advantage through differentiation in the market.

Leadership and Management Strategy

   Chairman and founder, Mr. Cai Guohua, encourages innovation, values expertise, and emphasizes delegated management. He actively encourages second-generation family members to engage in company operations, fostering a complementary model: the older generation provides experience and wisdom, while the younger generation brings fresh perspectives and creativity, progressively achieving a seamless transition. The founder supports younger members in gaining experience across different departments, which not only strengthens the team's expertise but also reinforces collaboration within the organization.

   Steelship bases its business philosophy on relationships, emphasizing trust with supply chain partners and avoiding unhealthy competition. The company aims to connect with partners in a mutually beneficial and win-win manner, enhancing industry competitiveness and collectively facing market challenges. With a focus on steady operations and sustainable growth, the company values the role of professional managers, steering clear of short-term profit goals, which has helped it earn a strong reputation within the industry.

Key Technologies and Service Models

   Steelship’s competitive advantage lies in its flexible and stable supply chain. The company holds quotas from the three major domestic specialty steel suppliers and can directly import steel from regions like India, Japan, and South Africa, allowing it to quickly meet customer material needs without intermediaries or waiting for steel mills to produce. Its comprehensive trade knowledge, fast and flexible shipping services, and complete and abundant product line form the core of its market competitiveness.

   In addition, Steelship has not only accumulated extensive expertise but is also actively involved in technological research and development. The company can quickly analyze customer blueprints and recommend suitable steel materials based on material characteristics, helping customers find a balance between cost and quality. This in-depth technical service positions the company as not only a steel wholesaler in the eyes of its customers but also as a reliable technical partner.

R&D Innovation

   Steelship continuously invests in research and development to improve its technical standards and production efficiency. The company has established a laboratory, purchased professional testing equipment, and actively collaborates with external partners to drive technological innovation and more efficient energy use. In response to rising electricity costs, the company is also undergoing a green, low-carbon transformation, aiming to reduce energy consumption and pollution emissions, with the goal of becoming an environmental model in the steel industry.

   Steelship also emphasizes digital transformation, gradually incorporating big data technologies to enhance process precision and quality control. In the future, the company plans to introduce smart robotic arms and leverage digital technology to drive factory automation, improving product yields and reducing labor costs. This will allow the company to offer customers reasonably priced and valuable options, helping them gain greater resilience and adaptability in a competitive market.

Brand Strategy

   The company positions itself around its two major brands, "STEELSHIP" and "Sintai," focusing respectively on steel wholesale and processing/manufacturing. The businesses complement each other, covering the entire industry chain from steel trading to downstream processing, catering to various types of demand. This brand strategy not only expands Steelship’s business scope but also strengthens its market coverage, enhancing customer trust in the stability of its products and the reliability of its brand.

   The company does not engage in price competition but instead focuses on developing value-added businesses. It also emphasizes creating a clean and tidy workplace, conveying its commitment to a high-quality manufacturing environment and the importance it places on brand image. To expand into international markets, the company plans to participate in overseas exhibitions and gradually adopt digital marketing and big data analytics to make more accurate product planning and market positioning decisions, thereby enhancing its international competitiveness.

Industry Challenges and Development Strategies

   In recent years, the company’s revenue has been impacted by a decrease in export orders from downstream manufacturers due to the pandemic. Additionally, Taiwan's geopolitical uncertainty has undermined foreign confidence, causing some orders to shift to Southeast Asia. Coupled with the global economic downturn, customers have become more conservative with their orders, and the depreciation of the Japanese yen has strengthened the price advantage of Japanese machine tools. These factors have all squeezed the company’s market sales volume.

   To address these challenges, Steelship has adopted "transformation and upgrading" as its core development strategy, actively pursuing digital and low-carbon transformation, and promoting the application of new technologies, including automation equipment. Furthermore, the company has strengthened its research and development of environmental technologies and received government support, creating a competitive advantage in environmental friendliness. However, the company hopes that traditional industries will receive more favorable policies in terms of regulations and economic support, particularly in the area of steel prices from upstream mills, which should be rationalized to prevent downstream manufacturers from losing competitiveness due to excessive cost increases.

Conclusion

   Steelship understands the importance of transformation for traditional industries. With a commitment to integrity, environmental protection, low carbon, and sustainability, the company strives to secure its place in the steel market through efforts in technological upgrades, product innovation, and corporate culture. In the future, the company will continue to focus on technological innovation and digital transformation, aiming to become one of the most trusted companies in Taiwan's steel industry. The company's keen market insight, investment in technological innovation, and strong emphasis on internal and external collaborations are undoubtedly key pillars of its success. Steelship will continue its steady and reliable progress into the next 40 years, setting a new benchmark for the steel industry.