Taiwan's machine tool makers enjoying influx of orders from BRICs

Taipei, April 21, 2005 (CENS)--Taiwan's makers in the line have enjoyed rapid influx of orders from the so-called BRICs, including Brazil, Russia, India, and mainland China, since the beginning of the second quarter of this year.

Some large-sized local manufacturers of machine tools claimed they have seen a 20% annual growth in orders from the BRICs since the beginning of April. These manufacturers include Victor Taichung Machinery Works Co., Tong-Tai Machine & Tool Co., Falcon Machine Tools Co., Awea Mechantronic Co., Kao Fong Machinery Co., and Roundtop Machinery Industries Corp.

Victor Taichung said it posted NT$1 billion (US$31.64 million at US$1:NT$31.6) in sales in the first quarter of this year. Orders received by the firm hit a new monthly high of NT$600 million (US$18.98 million) in March alone due to a substantial increase in orders from the BRICs.

Bert M.H. Huang, president of Victor Taichung, said his company just delivered seven machine tools to Russia in February and has recently received orders for 12 machine tools, valued at NT$30 million (US$949,360), from that country.

Victor Taichung said it would see monthly shipments reach between NT$400 million (US$12.65 million) and NT$450 million (US$14.24 million) beginning from April. The firm expected its annual sales to break the NT$5 billion (US$158.22 million) mark this year.

Tong-Tai reported cumulative sales of NT$1.01 billion (US$31.96 million) for the first quarter of this year, up 8.8% from the corresponding period of last year. The company received NT$380 million (US$12.02 million) worth of orders in March alone, hitting an all-time high monthly record. As much as NT$1.6 billion (US$50.63 million) worth of orders are not filled yet, which will keep the firm's production lines busy through the end of November this year.

Tong-Tai targets to challenge NT$4.8 billion (US$151.89 million) in sales this year because orders from the BRICs have grown over 20% annually so far this year. An industry insider predicted Tong-Tai to see annual sales break the NT$5 billion (US$158.22 million) mark this year to closely rival Victor Taichung.

Falcon, Taiwan's largest manufacturer of grinding machines, posted NT$308 million (US$9.74 million) in cumulative sales for the first quarter of this year, up 12.5% from the like period of last year. The company claimed it has received than NT$400 million (US$12.65 million) in orders in the second quarter of this year, with orders in hands to keep its production lines running through the end of June.

Falcon noted it has seen a 20% year-on-year growth in orders from the BRICs since the beginning of April.

Awea scored NT$625 million (US$19.77 million) in cumulative sales in the first quarter, shooting up 70.91% from one year earlier. Orders received by the firm for its large-sized double-column machining centers are sufficient enough to occupy the firm's production lines through the end of November this year.