Taiwan's machine tool exports surged 23.9% in Q1

Taipei, May 31, 2005 (CENS)--Taiwan exported US$580.03 million worth of machine tools in the first three months of this year, up 23.9% from the corresponding period of last year, according to customs-cleared statistics conducted by the Taiwan Machine Tools Foundation (TMTF).

Of the major categories of the products, metal-cutting machine tools saw export value amount to US$431.02 million, up 25% annually, and metal-forming machine tools US$149 million, up 21% year-on-year.

Of metal-cutting machine tools, machining centers posted an annual export growth of 35%, lathes 34%, electric discharge machines 30%, and shaping, sawing and gearing machines 36%, among others. In the category of metal-forming machine tools, presses and shearing machines saw an annual export increase of 16%, with others growing 44%.

In terms of major export outlets for Taiwan-made machine tools, mainland China and Hong Kong together ranked first by absorbing US$232.44 million worth of the products, up 5% and commanding 40.1% of the total exports. The U.S. ranked second with US$61.18 million up 73% and accounting for 10.5%. The third place went to Turkey with US$29.77 million, up 18% and commanding 5.1%.

Other major outlets, in descending order, were Thailand, the Netherlands, Vietnam, United Kingdom, Italy, South Korea, Malaysia, Germany, Japan, India, Indonesia, Singapore, Brazil, and South Africa.

The TMTF statistics also showed Taiwan imported US$364.24 million worth of machine tools in the first three months of this year, down 13.4% year-on-year. Imports of metal-cutting machine tools came to US$341.74 million, down 13%, and metal-forming machine tools amounted to US$22.5 million, down 19%.

TMTF ascribed the import decline to the decreased demand for imported high-value-added machine tools by the hi-tech industry.

In respect of major import sources, Japan stood at the first place by supplying US$220.54 million worth of machine tools to Taiwan in the first three months, up 1% annually and accounting for 60.5% of the total imports. The U.S. ranked second with US$72.52 million, down 50% and commanding 19.9%. Germany ranked third with US$22.09 million, up 1% and accounting for 6.1%.

TMTF CEO Wang Cheng-ching noted Taiwan's machine-tool industry still has a rosy picture in 2005 because domestic makers in this line have enjoyed a robust growth in orders. He believed there is great chance for domestic manufacturers to continuously take orders from Southeast and Southwest Asia, the United States, and East Europe for the rest of this year.

Wang further said domestic manufacturers of machine tools are facing some problems, including the price hikes in such materials as steel and cast iron, decreased imports of the products by mainland China in the wake of the implementation of a strict macroeconomic control policy since April last year, and the appreciation of the New Taiwan dollar against the U.S. greenback.

Exports of Taiwan-made machine tools in Jan.-March, 2005 Unit: US$1,000
Code	Products	Jan.-March, 2004	Jan-March, 2005	Annual Growth
8456	EDM, Laser Cutting Machines	24,952	32,335	30
8457	Machining Centers	125,946	169,673	35
8458	Lathes	79,474	106,244	34
8459	Drilling, Boring, Milling Machines	63,768	58,232	-9
8460	Grinding Machines	28,147	33,064	17
8461	Shaping, Sawing, Gearing Machines	23,113	31,479	36
462	Presses & Shearing Machines	98,414	113,947	16
8463	Other Metal Forming Machines	24,336	35,060	44
	Total	468,150	580,034	23.9
Source: Taiwan Association of Machinery Industry