Crisis Presents Opportunity, From Natural Fabric to TEMPO
Crisis Presents Opportunity, From Natural Fabric to TEMPO
  • Korea IT Times (info@koreaittimes.com)
  • 승인 2011.09.09 10:32
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Taebong Co., Ltd., who had carried on its traditional natural fabric raw cotton business, has switched their business to specializing in medical hygiene products and is now preparing for the global market. Established in 1986, Taebong, as a company engaged in textiles and possessing specialized manufacturing skills, has actively been proceeding with its exports to the U.S., Europe, and other countries since its establishment. These products already have acquired certifications from the U.S. FDA, Europe CE, and ISO. What could have been the reason to why Taebong, having been acknowledged for its quality inside and outside of the country as well as active in the overseas market, made its decision for business conversion This is in line with the rise and fall of the domestic textile market. After the 1988 Olympics, the textile market faced a crisis due to the rise in raw and subsidiary materials as well as labor costs. Taebong set out a restructuring process, and as a way out of the crisis, they chose to switch their business to focusing on medical equipment and hygiene products. This owed to the fact that their raw cotton manufacturing machine was reusable and production was possible with their own skills.

 

HUE-COTTONIA

For Women to Freely Move Around, It's TEMPO

Taebong became the OEM supplier of Dong-A Pharmaceutical's insert-type tampon - TEMPO. Both companies can seek synergistic effect in which Taebong can share its technology and quality as Dong-A Pharmaceutical can share its sales force and brand value. Taebong dispatched one of its engineers at Dong-A Pharmaceutical in December of 2006, and that engineer acquired the TEMPO manufacturing skills to perfection in just around one month time. Based on these performances, Taebong entered into a purchasing contract for the TEMPO manufacturing equipment with Dong-A Pharmaceutical in January of last year, and started to supply the products from March the same year. At first, Dong-A Pharmaceutical predicted about one year for everything from technology transfer to finished product supply, but Taebong gave all a surprise by manufacturing the prototype in just three months. However, financing for the purchase of the TEMPO manufacturing equipment was a new issue for Taebong. Raw cotton could be manufactured by using the existing equipment, but due to the fact that there was no general line for the finished TEMPO product was not in place, a whole new process had to be established from selection of the machinery to production. For a small, medium-sized company to change its business or pursue another industry, it is not much to say that financing becomes the greatest difficulty. Representative Director Lee Bong-Sang went to the Small & Medium Business Corporation and requested for business conversion support. The Small & Medium Business Corporation, judging that although the cotton spinning industry has faced a downturn, the skillful Taebong's conversion into the proposed high value-added product manufacturing was valid, made their decision on the financial support. The total amount of the business conversion finance support that Taebong received was 1.7 billion won including 1.2 billion for the facilities and 500 million for operation. With Taebong's own finance of 700 million won added, the TEMPO production line was established. With the business conversion support from the Small & Medium Business Corporation, Taebong recorded sales of 11.8 billion won in 2006, the year when raw cotton and goods-in-process were their main items, and in 2007, the first year of their business conversion, their sales are predicted to have reached a total of 17.1 billion won inclusive of 4.3 billion from the new business. Sales for this year are expected as more than 30 billion won. Taebong is running their fabric line at a hundred percent full capacity. It is a whole different story from the industry complaining that work has become slow. This is all contributed by Taebong's posture of not giving up during the crisis and not settling during prosperity but keeping on taking challenges for growth.

TAEBONG Co., Ltd. has been awarded the KOTRA Seal of Excellence since 2009.


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