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Taiwanese Machine Tool Suppliers See Flood of Orders in Q1, 2014

2014/02/06 | By Steve Chuang

With markets in the U.S., the EU, and China increasingly on the mend, Taiwanese machine tool suppliers have taken in a flood of orders that have almost completely booked their production capacity for the first quarter of this year. The boom has prompted some companies to advance their capacity expansion plans.

Since the fourth quarter of last year, for example, the AWEA Mechatronics Co. and Goodway Machine Corp. have taken orders worth over NT$1.2 billion and NT$900 million, respectively. This has inspired institutional investors to predict that both companies will experience improved performance in the first quarter of this year.

To penetrate the energy and aerospace segment of the machine tool market, Goodway has decided to kick off construction of a new plant in the central Taiwan county of Chiayi The new facility will cost about NT$1 billion and is scheduled to start operating in 2016.

Meanwhile, the Tongtai Machine & Tool Co. is reported to hold over NT$1.9 billion worth of unfilled orders, 50% coming from Chinese carmakers. With production lines fully booked for the first quarter, the company is highly optimistic about the coming months.

To keep pace with the brisk market recovery, Tongtai with start first-phase construction of a new plant in the Southern Taiwan Science Park in the second half of this year. Costing approximately NT$600 million, the planned factory will be completed at the end of 2015 and will contribute about NT$4 billion to the company's annual output value annually when in full swing.

Nearly NT$500 million in unfilled orders are keeping the Kao Fong Machinery Company's production lines running at full capacity. The company is expanding its factory in the Central Taiwan Science Park, mainly for the production of large-sized double-column, five-axis, and other high-end machine centers. When the expansion is completed at the end of this year, the factory will be able to generate an annual output of over NT$1 billion.

The Shieh Yih Machinery Industry Co. has a backlog of more than NT$1.4 billion in orders for its presses, some for delivery in the second quarter. To meet the increasingly strong demand for large-sized presses, the company said it may bring forward the third phase of its expansion project, which calls for investment of more than NT$200 million in a new plant on over 9,000 square meters of land in China. (SC)

Status of Taiwan's Major Machine Tool Suppliers in Q1, 2014
Company

Orders on Hand

Investment Projects for 2014

Investment Value

AWEA Mechatronics Co.

NT$1.2 Bn.

Advancement of first phase of construction of a new plant in Chiayi County to mid-2014

NT$1 Bn.

Goodway Machine Corp.

NT$900 M.

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Tongtai Machine & Tool Co.

NT$1.9 Bn.

Advance first-phase construction of a new plant in the Southern Taiwan Science Park to 2nd Half 2014

NT$600 M.

Kao Fong Machinery Co., Ltd.

NT$500 M.

Expansion of Factory in Central Taiwan Science Park

NT$600 M.

Shieh Yih Machinery Industry Co., Ltd.

NT$1.4 Bn.

Start of third-phase construction of factory in China at end of 2014

NT$200 M.

Source: Companies