Cost reduction through in-house production of the cutting tools
With manufacturing bases in Thailand and India, our group owns more than 1,000 automatic lathe machines, which is known as one of the largest capacities in the Asian region.
Along with the number of lathing machines owned, our production volume has increased, and the consumption of the cutting tools, which are indispensable for the manufacture of cutting parts, has exceeded 10,000 pieces per month.
Due to the high cost of some of the cutting tools we use, which we import from overseas, and the long delivery lead time that increases inventory management costs, we installed our first tool grinder in 2015 at our Thai subsidiary, E&H Precision (Thailand) Co. Ltd. and the second one in 2019 to reduce purchase cost as well as inventory management cost by shortening lead time by producing about 35% of cutting tools.
Currently, we manufacture insert chips/throw-away chips, drills, boring bits, half-round reamers, and end mills in-house which are made of carbide (carbon steel) and high-speed steel.
In addition, step drills, hand reamers, guide bushings, collet chucks, etc. are reground after using existing products in-house.