HONG KONG (Jan. 10, 2012) — One of Hong Kong’s largest plastic injection molding companies, Vigor Precision Ltd., is leading an effort with the Hong Kong government to develop what they say will be China’s first locally-owned airline seat manufacturing business.
The project recently unveiled its first seat, for the Airbus A340, and hopes to expand that to seats for Boeing and other commercial jetliners, and to other non-critical aircraft parts, including trolleys, crew seats and toilets, all of which use plastics components.
Vigor is the lead company in the project, which in its research phase has spent HK $11.6 million (US $1.49 million), with 85 percent of that coming from the Hong Kong government.
Hong Kong officials say it is part of their strategy to help small manufacturers beat cheaper competition from mainland China and elsewhere, and move into higher-tech, more profitable markets.
The consortium showed the A340 seats, which it says meet all international aviation industry standards, at a Nov. 14 press conference in Hong Kong.
Airline seats may seem an odd move for a plastics company, but Vigor, which employs 2,000 people and has more than 200 German and Japanese molding machines in three Chinese factories, sees it as a natural evolution.
Each chair has about 30 injection molded plastic parts, although plastic is not the key technology. Instead, Vigor said what will be most valuable is its expertise in precision manufacturing and assembly.
“The seat is not a high-tech product but it is a high-quality product,” said S.W. Wong, who is executive director of both Vigor and the aviation consortium. “You have to pass the [airline industry requirements] from material, from design, from workmanship… It has to be as light as possible but at the same time you have to be as tough as possible.”
The consortium, called Universal Aviation Industrial Ltd., is a partnership of six Hong Kong companies, with Vigor owning 56 percent.
The companies will spend about HK $20 million (US $2.57 million) of their own money to set up manufacturing, beyond the research funding. The companies had significant research help from the Hong Kong Productivity Council.
Universal expects to launch commercial production in 2013 in space at one of Vigor’s injection molding factories in Dongguan, Guangdong province, said Henry H.H. Chan, president of both Vigor and Universal.
The company plans to start small, with aftermarket seats for the A340.
It sees its initial advantage as cost — it expects it can trim 30 percent off the price offered by the European, North American and Japanese suppliers that dominate today, Chan said.
Initial production capacity will be 200 to 500 seats a year, he said. That’s not a huge number, but each pair of economy class airline seats sells for US $10,000, and one business class seat can have a US $35,000 price tag, Chan said.
It will initially focus on replacement seats for low-cost Asian airlines, with plans to broaden to other aircraft beyond the A340 and develop its own seat design capability to target China’s growing market.
Those involved in the project see it as a long-term endeavor, with Wong drawing parallels between Vigor’s history with gears and the aviation venture.
When Vigor started in 1982, precision plastic gear manufacturing was dominated by the Japanese, and there was a lot of skepticism about a new entrant from Hong Kong getting into the toy market, he said.
“At the beginning, McDonalds and Mattel, they didn’t believe that Hong Kong guys could make the gearbox, particularly the small ones, where you have gears like watches,” Wong said. “It took us four or five years to convince them to give us a try.”
But by the 1990s, Vigor was one of the world’s largest suppliers, and has since developed its technology into precision plastic gears for automobiles, electronics, medical and other higher-end markets, Wong said.
Project officials hope that same long-term focus will pay off in aviation.
“It’s a gradual transition,” said Thomas Kwok Keung Lee, an engineer with the HKPC who is advising the seat project. “You start with the aftermarket, you establish a track record and then you can consider the OEM market. Boeing or the other airline companies will not consider you if you don’t have a track record.”