Mission:
While maintaining our commitment to humanity and the planet,Harvest Glory will Strive to continually improve our services To provide creative and cost-effective leather products for our customers.
To achieve the above goals, we plan as follows: Improved delivery performance, Reduce production cost, Improve product quality and reduce pollution through sustainable and cleaner technologies.
The Pai Family has been engaged in the leather industry for more than eighty years. In the 1930s, my shoemaker grandparents, who were occupied in shoe and belt making, decided to learn about leather production together with my uncles for the convenience of production. At that time, with poor industrial condition and insufficient information, there weren’t many materials for them to study. The elder generation told us that they spent three fen of fertile farmland (it was worth ten liang of gold then) for one piece of chrome tanning prescription. As manual operation was the main method at that time, only two pieces of leather could be finished in one month to make shoes and belts. In the 1940s, after the retrocession of Taiwan, thanks to government's supports on livelihood industries, the demand for shoes increased, and the leather industry got developed as well. With the joint efforts of the whole family, and the farmland as capital, we gradually turned to the leather industry.
In the 1970s, with the development of export economy in Taiwan, other family members returned to the family business one by one and participated in the operation, taking on their respective roles. At first, things were not going well as we started up in Huatan Town, Changhua, where the farmland limited the business expansion. Therefore, with the encouragement of the government out of environmental protection purposes, in 1979, we built a factory in Tayuan Industrial Park, Taoyuan, Taibei (our present and established Tehchang Leather Production Co., Ltd., which was formally put into operation on May 1, 1982. Actually, C.T.H.W. is owned by four families of four brothers. The letter C represents Pai Qinghui, T represents Pai Dewang, H Pai Xiqian, and W Pai Wanlai. I’m the third generation of the original chairman Pai Dewang, running the company with my family.
Formerly majoring in Chemistry, I joined Tehchang’s business group as the General Manager, responsible for businesses and technologies after three years of further study in the UK from 1979 to 1981. As a family corporate, Tehchang has witnessed forty years of development. We have learned that we should follow the market trend, understand what is needed in the market, and make adjustment of our products accordingly.
In the first decade of Tehchang from 1980 to 1990, white sports shoe leather was our main product, 500 pieces being produced per day (equals to 25,000 feet). They were mainly provided for NIKE and ADIDAS, as well as Feng Tay and Pou Chen. We also make leathers for women's shoes and bowling shoes, cooperating with Genrl and Sherwood. Later in the second decade from 1990 to 2000, we turned to women’s shoes business in cooperation with NINE WEST, HUSH PUPPIES and STELLA when market changed and sports shoes tended to be lighter and softer with lower costs. As the owners of the brands would come to Tehchang for procurement and communication, in 1992, Pai Dongming decided to establish the Changrun factory in Dongguan, Guangdong Province for the convenience of goods delivery. We had to lend factories there to produce raw leather materials to satisfy the demands, due to insufficient supply from the Taiwan headquarters whose monthly yield was merely 7,000,000 feet. With the market changes, competition became severer as many of our competitors started importing raw leather materials from other countries such as Argentina, India and Pakistan. In the face of this, in the end of 1990s, we decided to switch again to produce work shoes, cooperating with Goden Chang and Kingmaker.
In the 1990s, most shoe and leather producers started OEM business, copying the designs and models of U.S. producers and putting them into mass production when orders were placed. But market is always changing. In 1998, we introduced American ROF for business expansion to the international scope, and managed to start cooperation with Timberland, Wolverine and ClarkK. Therefore, we successfully entered the area of outdoor shoe leather producing in the third decade of 2000 to 2010. Later, for further productivity enlargement, we established another company, Joinland Leather Products Co. Ltd., in 2003 at Zhuhai, Guangdong Province, where we bought a plot of land six years previously in 1997. As the market changed, high functional footwear transferred its base from the U.S. to the Chinese Mainland and enjoyed increasing demand. Seizing the opportunities, we grew larger and larger and keep the business going by now.
Since 2006, attributing to the higher energy consumption and labor costs in China caused by industrial structural adjustment, many of our partner factories moved to Southeast Asian countries like Indonesia, Vietnam and Bangladesh, where labor costs were lower. In line with our spirit of customer-oriented, we established CROSS CONE in Vietnam in 2010, a processing and production base as the fourth leather factory of Tehchang with the monthly yield of 800,000-1,000,000 feet now. In the
fourth decade from 2010 to 2020, we mainly face the global market and establish partnerships with large brands in the world. Our leather products are sold to the European and American markets.
Except for keeping pace with the trend, a more important reason for Tehchang’s growth is the efforts we make in R&D and technological improvement. As early as in 1995, we introduced the Scott chemical materials developed by 3M company, one of our cooperators in America, while at that time, most of the so called water proofing leather products in the market were of water repellency actually which could prevent the surface from being moistened by water. With the help of 3M, we added chemical agents to the products in the tanning process in Beamhouse to realize the actual water-proof property of our leather, instead of the traditional surface water prevention function. In 2000, with the introduction of ROF, we cooperated with GORE, another American company, to produce a kind of water resistible and breathable leather, so that our water-proof products could breathe freely and drive out moisture. Since then, we have cooperated with many international large chemical material brands to develop the leather products with high physical properties to satisfy the market demands. At present, we are the supplier of GORE TES TGROUP.
Except for following the market trend and improving the technology, we should attach enough importance to environmental protection for the sustainable development of leather business. We have realized it and practiced the environmental protection policies actively since the time people cared little about it. We became a member of LWG when it was established and promoted the development of it with real practices. Actually, when Pai Dongming established the Changrun Factory in Dongguan in 1992, environmental protection was placed with much emphasis, and sewage and waste gas processing facilities were well prepared even though our tenancy term was only twenty years. Moreover, due to environmental protective preparation, the construction of Joinland, for which Pai Mingzheng was responsible, had been delayed until 2002 although we bought a 50-year right to use the land in 1997. For practicing the pollution prevention work, we requested the local government to establish sewage discharge supporting facilities, and spent five years on environmental evaluation and its certification from the municipal to ministry level before starting the production. These were what we not only had to but also chose to do, and were our social responsibilities.
Since its establishment, Tehchang, holding the idea of respecting the lives and maintaining the ecological balance, has always been performing the responsibilities as a global village member. In the aspect of customer service, we should control the costs, improve the product quality and follow the delivery orders, and should also take social responsibilities. Since the establishment, we have been promoting industrial waste reduction and engaging in the R&D of clean production methods, selecting tanning agents with the lowest impact on environment and adopting the production procedure with low pollution load. Efforts will be spared continuously to reduce energy consumption, control water use, decrease chemical material costs, and earn more economical benefits for the whole group. Based in Taiwan, we will hold an international view and try to develop into a trans-regional and global corporate. For this, the second factory of Tehchang in Vietnam will be founded in 2019 to satisfy the customer demands and keep improving ourselves.
In the earlier stage of the group, five fundamental principles, namely industrial safety, quality guarantee, research and development, profit sharing, and environmental protection have been formed out of its business philosophy of integrity and sincerity. It was difficult for a leather-making corporate that engage in such a traditional industry to be listed, so when Tehchang had developed to a relatively mature extent, we opened employee stocks to our staff to encourage their participation in corporate operation and share the profits with them as a bonus to the society. We believe that employees’ participation will be helpful for the long-term stable development of the corporate. In 1988, intermediate and senior cadres who had served in the group for more than five years were provided with stocks; in 1993, managers were permitted to participate in the Board; at present, the proportion of employee stocks is 18% of the whole. Our employees in both Zhuhai and Taiwan also had their own investment in the construction of Joinland in Zhuhai in 2003. Later at the beginning of 2016, employee stocks were further opened to win more staff support. At present, the proportion of employee stocks has reached to 24% in Joinland
Reviewing the past is a better way to plan for the future. As a stable developing factory, Tehchang will put forth effort to expand both the Southeast Asian market and the domestic market of China. With the development of economy and the improvement of living standard in China, functional casual shoes will have great promise with people’s daily growing demands for recreation and sports. We will take the domestic market of China, the largest developing economic body in the world, as one of the important target markets of Tehchang as there is infinite potential and business opportunities for us to seek for a brilliant future.
Tehchang will grow with you!