Large-sized Machine Tools Buck the Industrial Downturn

Large-sized, multitasking, energy-saving, five-axis machining centers, like those displayed at the Tokyo International Machine Show on Oct. 30 to Nov. 4 last year, have become the mainstay of Taiwan's machine-tool industry. Many manufacturers in the line believe that these machines will become their most important engine for sales growth in 2009 and beyond.

One of the island's manufacturers of these products notes that these large-sized machine tools are extensively employed in the aerospace, shipbuilding, wind power generation, solar energy, ore mining, and oil exploration industries.

Large-sized machine tools are the only products in Taiwan's machine-tool industry that have escaped the effects of the global financial tsunami and the consequent economic slowdown (or at least had done so up to the end of 2008). Many domestic firms that focus on the development and production of large CNC (computerized numerically controlled) machine tools say they have enjoyed continued sales growth over the past several months.

For instance, She Hong Industrial Co. and Awea Mechantronic Corp., which concentrate on the production of large double-column machining centers, say that they have enough orders to fill in their production lines for three to four months. You Ji Machine Industrial Co. says that the new orders it has received for large machine tools will keep production humming for six months.

She Hong marketing manager Lin Yi-shun reports that his company sells such big machines as 3,000 x 4,000mm large-sized five-face machining centers at around NT$12 million (US$363,600 at NT$33:US$1) each, 20% to 30% less than machines made by Japan-based Okuma and Mitsubishi. Lin claims that his machines can compete with Japanese ones in terms of machining accuracy.

Thanks to a simplified structure and a low defect rate, the large-sized machines developed by She Hong sell very well domestically and in South Korea and Malaysia. The company says it has been developing larger-sized models with over 5,000mm in X-axis travel to meet special customer requirements.

You Ji says it is capable of turning out large-sized vertical CNC lathes with a machining capacity of 4,000mm. To meet increasing demand from such industries as aerospace, railway rolling stock, oil exploration, and wind power, this year the company will move into the development of large-sized horizontal machining centers, flat-type horizontal lathes, and floor-type boring and milling machines costing approximately NT$10 million (US$303,000) each.

Large Spindle Bores

The Jashico Machine Manufacture Co., one of the few domestic manufacturers that specialize in large-sized machines, says its large CNC lathes with a wide range of applications have drawn buyers' interest at major machine-tool shows over the past several years. The company says its long-term dedication to the development of sophisticated technology for making large-sized CNC lathes has paid off.

"World demand for large-sized lathes will grow at a rapid pace in the decade to come," comments George Wang, president of Jashico, "thanks to the expansion of such industries as oil-exploration, wind energy, nuclear energy, papermaking, and steel refining."

To meet customer demand, the company claims that it has developed Taiwan's largest slant-bed CNC lathe featuring a large swing-over-bed and large bore, capable of processing workpieces two to 12 meters in length. The lathe can be equipped with a C-axis to perform such functions as cutting, milling, drilling, and engraving. It can act as a planomiller and vertical lathe at the same time, and can save time in the loading and unloading process.

Wang says that for its machine beds, his company employs a high-grade GB300 cast iron that has more alloy ingredients than general-purpose cast iron.

To assure high quality in its large CNC lathes, the company imports costly TIMKEN-brand spindles from the U.S. The cost of a spindle for a machine with a 21-inch bore is as high as NT$2 million (US$60,600).

Multi-tasking Machine Tools

Over the past several years, Taiwan's manufacturers of CNC lathes have been concentrating on the development of multi-tasking machines which can save floor space and labor. Leading local manufacturers, including the Goodway Machine Corp. and Focus CNC Co., are striving to develop large-sized machines to meet the special requirements of the island's automobile and aerospace parts industries.

Goodway stresses that it has begun production of several innovative models, including dual-spindle, dual-turret CNC lathes; linear-way slant CNC lathes; and boxway slant CNC lathes, which are popular among major clients in the automobile, optoelectronics, and optical instrument industries. The company says that its customers have to wait for at least three months for deliver of its recently developed high-performance CNC lathes.

Government Funding

To expand Taiwan's machinery production and exports, the Ministry of Economic Affairs (MOEA) set aside NT$800 million (US$24.24 million) to encourage the development of sophisticated machinery in 2008. The ministry plans to spend still more with the aim of helping the domestic machinery industry grow into a major manufacturing sector with a total output of NT$1 trillion (US$30.3 billion) this year.

Deputy Economics Minister C.C. Teng notes that the government is encouraging the development of manufacturing equipment for the domestic TFT-LCD (thin film transistor-liquid crystal display) industry. This will help the island's machinery industry weather the impact of the global economic recession.

Over the past several years the government has set up the Taichung Precision Machinery and Innovation Industrial Park in central Taiwan, together with peripheral parks in neighboring Shengang, Fengzhou, Qingshui and Gaomei. These parks will provide plenty of space for the domestic machinery industry to expand its production capacity.

Eric Y.T. Chuo, vice chairman of the Taiwan Machine Tool & Accessory Builders' Association, notes that over 80% of Taiwan's manufacturers of precision machinery are concentrated in the central part of the island, making this area one of the world's most-integrated industrial clusters of its kind. This fact, Chuo says, has helped Taiwan grow into the world's fifth-largest producer and fourth-largest exporter of machine tools. He calls on the government to help the industry keep growing, since its manufacturers are capable of developing the sophisticated production equipment needed by a wide range of manufacturing industries.

To help manufacturers expand their production capacity, the Taichung City Government has mapped out a plan for the second-stage development of the Taichung Precision Machinery and Innovation Industrial Park to provide 35 hectares of additional land for machinery plants. In addition, a 1,000-booth exhibition hall is to be built in the park, with completion scheduled for 2010. (Jan. 2009)