Growth strategy of a Korean lighting company
Techen secures competitiveness by introducing automation equipment
Written by : Jung-Bae Kim. Publisher & Editor. Lighting Critic.
lighting business, such as technology, quality, price, and marketing, is significantly lower
than those of foreign companies such as China.
in securing original technology, factory automation, and'high quality' based on the'three
arrows' of reducing production costs. . These achievements are a driving force for Techen
to actively increase its exports to the Middle East and other overseas markets these days. <Editor's Note>
Secure price competitiveness by introducing automation of production facilities
By acquiring the “Middle East Certification”, which has only four companies in the world,
International Lighting Exhibition' held in Guangzhou, Guangdong Province, China in June
2018, one of the most noticeable overseas lighting companies was 'Fumagalli
Illuminacione' from Italy.
Among the participating companies in the ‘2018 Guangzhou International Lighting
Exhibition’, which is close to 3,000, there is only one reason why “Pumagali” received
This is because despite being a “European company” with headquarters and factories in Italy, the price of the product was only the price of a Chinese-made lighting fixture. On the
other hand, the quality of the lighting fixtures remained unchanged, as it was "the quality of the lighting fixtures in the world."
In fact, “the price is at the level of China and the quality is at the level of Italy” is the
“ultimate goal” of lighting companies in advanced lighting countries such as the United
States, Germany, Italy, Japan and Spain.
If only that can be done, lighting companies in countries like the US, Germany, Italy, Japan and Spain will be able to compete with Chinese lighting companies. And it may be
possible to go back to the "times" when these lighting companies dominated the global
price tag of genuine Chinese-made products were made and brought to the forefront of
the Chinese lighting market, the “Guangzhou International Lighting Exhibition”.
However, there are lighting companies in Korea that have achieved the formula of “the
price is the level of Chinese products and the quality is the level of Italian products.” The
difference, however, is that the goal achieved by this company is'Chinese-made products
for price and Korean-made products for quality'.
The protagonist of this ‘story’ is Techen Co., Ltd. (CEO : Young-Seop-ri), the first-
generation LED lighting company in Korea, located in the national industrial complex of
Dalseong-gun, Daegu, Korea.
Korean government agencies, public companies, public institutions, local governments,
construction companies, electric construction companies, urban landscape companies,
public design companies, landscape companies that purchase and use LED street lights,
security lights, tunnel lights, and landscape lighting devices now. It is hard to find a
company that does not know Techen.
And the perception of techen that these demanding institutions have can be summarized
in just two sentences. First, it is a company that has the'source technology' that
fundamentally solves the heating problem of LED lighting in Korea.
Second, Techen's LED lighting fixtures are of the highest level in performance, quality, and design. Here is another new nickname for Techen. It is one of the'lighting companies with the largest production facilities, automation facilities and solar power generation facilities
However, Chairman Young-seop Lee, founder and owner of TechN, is aiming for a bigger goal than this. In short, it is to become a “global lighting company with original
technology” standing on the ranks of global lighting companies such as Philips, Osram
In fact, when we consider the reality of the Korean lighting industry and the situation of
lighting companies that we often see in Korea these days, the “new goal” of Techn and
Chairman Young-seop Lee is not easily understood.
Many Chinese companies have given up on domestic production and started OEM
production in China because they were forced to compete in technology, quality and
price. In addition, there are a considerable number of lighting companies that import
Chinese-made parts, assemble them, and put them on the market.
goal of becoming a world-class lighting company with original technology may be
achievable by TechN and Chairman Lee Young-seop. Because for TechN, such a grand
vision and goal This is because there are'three arrows' that can be realized.
◆ Techn's first arrow : original technology
2009. Of course, there are some LED lighting companies in Korea that started the LED
lighting business before Techen.
However, many of them have been shut down for reasons such as lack of funds, lack of
technology, product quality, or marketing failure. Among the companies that have
survived so far, it is difficult to find a company that has succeeded in expanding its
business like Techen.
among “first generation LED lighting companies”? Many people in the lighting industry
point to the fact that TechN had the original technology that fundamentally solved the
heat problem of LED lighting unlike other companies.
onduction pin insertion type heat dissipation technology', and acquired high efficiency
No. 1 LED street light, new technology (NET) certification and self-quality assurance of
green technology certification. Focused attention.
to increase the heat transfer cross-sectional area, and the material is silver (Ag) or copper (Cu) with high thermal conductivity. It is a feature and advantage of maximizing heat
dissipation effect by rapidly discharging heat into the air by inserting a).
shortening the performance and life of the LED.
Therefore, it is important how to quickly dissipate the enormous heat generated from the LED. This technology is the heat dissipation technology of LED lighting. Therefore, from
the beginning, we focused on developing technology to solve the heat (heat) problem,
which is the weakness of LED lighting. As a result, he explained, “We were able to
independently develop “heat-conducting fin-inserted heat dissipation technology”.
Next, Chairman Lee Young-seop said, “These original technologies brought about the
difference in product performance and quality, and became the driving force in the market for demanding organizations and companies to trust and purchase TechN's products. “The difference in technology became a decisive factor between the success or failure of the
LED lighting business in the end and the fate of the company.”
performance, quality, and design of the finished product made by applying the technology are not
superior to those of other companies, it will inevitably be ignored in the market.
quality and design development from the beginning of its inception. Until now, TechN's investment in technology development and product quality and design level improvement alone amounts to billions of billions. These efforts and investments of TECHN Co., Ltd. contributed decisively to market
evaluation and sales improvement of excellent performance, reliable quality, and excellent design.
technology, were evaluated to have significantly improved the light efficiency and lifespan of LED
lighting products by more than 30%, respectively, compared to existing products.
the Public Procurement Subcommittee (Quality Quality Assurance Product) under Article 15
(Designation of Self-Quality Assurance Products), Article 15 (Quality Quality Assurance Products)
General Section-3031, November 20, 2015) has been announced.
light (Product name: TCN-GND-60 ) ▲200W explosion-proof LED floodlight (product name: TCN-FPC-200) ▲300W high-power LED floodlight (product name: TCN-FRC-300).
Expressway Corporation, and adopted Techen's new technology heater pipe (Patent No. 10-1501363). It is a street light with the latest sense of streamlined style, and the weight is 40% lighter than other products. Angle can be adjusted in multiple steps. With one-touch opening and closing, it has
excellent maintenance and repair functions.
by applying a radiating fin. With one-touch maintenance, the maintenance function is excellent. It has a multi-level angle adjustment function, and a dedicated lens is used for each application.
proof to ensure safety. Installation is simple due to the integrated structure of SMPS. The streamlined style prevents foreign matter from attaching. Also, dust is prevented by special design.
Technology Certification, New Intellectual Award (2012) ▲Minister of Trade, Industry and Energy
Award, Korea Technology Award (2013) ▲Korea Lighting Award (Product Development Grand Prize) , Awarded a number of awards, such as the Award for Merit for Commercialization of New Technology, Award for Education Donation (2014) ▲Engineer Award, Beautiful Taxpayer Award, Korea Lighting
Award (Social Contribution Category), and President Award for New Technology Development (2016).
◆ Techn's third arrow: Factory automation and production cost reduction
"Just because the original technology is present and the product's performance, quality, and design
are excellent, does not mean that a product is sold well." To put it plainly, it means, "No matter how good the technology and products are, if the price is high, they are not sold."
purchase a product, regardless of domestic buyers or overseas buyers, is'price'.”
However, TechN has already secured price competitiveness in the domestic and overseas markets.
This is the reason why we can say "the price is made in China and the quality is made in Korea."
Chairman Lee Young-seop also said, "Techn's products have already reached Chinese-made prices,"
and revealed the vision that "We will achieve higher price competitiveness than Chinese-made
products through improved productivity and cost reduction in the future."
of China? The first are'economy of scale' and'factory automation'. Here, “economy of scale” means
maximizing production manpower and productivity per unit of time by effectively and efficiently
arranging production facilities in large factories.
To this end, on March 16, 2016, Techenrelocated a new large-scale modern factory to 99 National
Sandan-daero 50-gil (Ngam-ri San73), Gu-myeon, Dalseong-gun, Daegu. Techen's new factory was
built with an annual floor space of 4200 pyeong on a site of 3200 pyeong, of which 3,000 pyeong is a manufacturing facility and 1,200 pyeong is an auxiliary facility.
These production facilities are fully automated and are operated with only a few personnel. This
production method is drawing attention as the most ideal “smart factory” model because it maximizes productivity and minimizes cost compared to the method in which most of the work is done by hand with the input of manpower.
The second is the reduction of production costs. In this regard, Techn Co., Ltd. introduced solar
power generation facilities (450Kw/h) on the roof of the building and on the roof of the ground
parking lot when constructing the new factory. It also has a renewable power generation & ESS
system (150KWH) and rainwater (rainwater) recycling facilities (300Ton).
TechN Co., Ltd. uses this facility to regenerate and use electric energy and water, and the surplus
electric energy is sold to the Korea Electric Power Corporation (300KWH).
For example, all of the electricity produced by solar power generation facilities built in the form of a
roof on the ground parking lot is used as energy used by the headquarters offices and factories.
Thanks to that, TechN Co., Ltd. does not spend even 1 won of electricity required to operate the headquarters office and factory. Rather, electricity (300KWH) produced by the photovoltaic power
generation facility installed on the roof of the factory is sold to the KEPCO and receives monthly
Water from a rainwater (rainwater) recycling facility with a capacity of 300 tons that connects the rooftop of the building and the basement is used to cover the water required by the plant, so there is
no expenditure for the use of tap water. The savings in electricity and tap water usage are
contributing greatly to TechN's reduction in production costs and increase in product price
◆ Do everything you can to'strengthen competitiveness'
Techn Co., Ltd. secured the core technology of competitiveness and improved product
competitiveness by innovating product performance, quality, and design. The production facilities
were enlarged and the production facilities were automated to increase productivity, and it gave
confidence that it could satisfy enough orders from overseas buyers.
In addition, by introducing solar power generation facilities and rainwater recycling facilities,
production costs were reduced by achieving zero (0) electricity and tap water expenditure when
others are worried about electricity costs. The result of these efforts is the ideal competitiveness of
‘the price of the product is at the level of Chinese and the quality of the product is at the level of
Now, Techen Co., Ltd. is actively expanding overseas exports by leveraging these “three arrows”. As a close example, recently, a country in the Middle East acquired certification for “LED lighting”.
Currently, it is known that only three companies in the world have obtained this certification, which is famous for being tricky: Philips, OSRAM, and Techen.
Taking advantage of this “Middle East Certification” acquisition, Techn Co., Ltd. is exporting 15,000
LED lighting products to Middle Eastern countries every month.
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