Mainland China's Fresh Car Subsidization Plan Warms Up Taiwan's Machine Tool Industry

Taipei, June 8, 2012 (CENS)--The positive effect on Taiwan's machine tool exports of mainland China's plan to offer fresh subsidy to car consumers is looming up and will become significant in the second half of this year, according to Taiwan's industry executives.

Shieh Yih Machinery Industry Co., Ltd. pointed out that orders from the mainland's carmakers for its large press machines have increased recently than before. The company's executives said although the mainland's 12th Five-Year Plan does not come up with specific measures for boosting the mainland's car industry, the mainland's car market remains huge.

The company's executives estimated the mainland's fresh subsidization plan for car consumption would trigger additional demands for machine tools in the second half of this year. Based on approximately NT$1 billion (US$34 million at US$1:NT$29) worth of orders the company still holds and the mainland's subsidization policy, the company is sanguine about business of the second half of this year.

Shieh Yih executives pointed out that the company's revenue from sales outside mainland China was NT$191 million (US$6.5 million) in May, decreasing 15.08% year on year. But its revenue including sales in the mainland was NT$391 million (US$13 million), surging 6.14% from the same month of last year.

Throughout the first five months this year, the company's non-consolidated revenue was NT$849 million (US$29 million), contracting 14.52% from the same period of last year. By consolidation basis, the company's revenue for the five months was NT$1.4 billion (US$50 million), down 8.98% from the same period of last year.

Goodway Machine Corp. had revenue of NT$246 million (US$8.4 million) in May, gaining 17.78% year on year. Its total revenue for the first five months was NT$1.2 billion (US$43 million), spiking 47.16% from the same period of last year. In May, the company landed NT$200 million (US$6.8 million) of orders, accumulating the company's orders at hand to NT800-900 million (US$27-31 million).

AWEA Mechantronic Co., Ltd. scored revenue of NT$313 million (US$10 million) last month, down 10.95% from the same month a year ago. In the first five months this year, the company raked in total revenue of NT$1.3 billion (US$45 million), increasing 15.28% from the same period of last year.