Machine-tool Firms Aim to Generate NT$10 B. in Annual Sales

Taipei, Feb. 1, 2008 (CENS)--To meet the goal of developing machinery manufacturing into a NT$1 trillion (US$30.95 billion at US$1:NT$32.3) industry in terms of annual output as set by the government, leading domestic manufacturers of machine tools are scrambling to secure NT$10 billion (US$309.59 million) in annual sales by expanding production capacities.

Steve R.L. Chen, Minister of the Ministry of Economic Affairs, has explicitly noted his ministry would finance domestic machinery manufacturers to acquire needed land space for expanding production capacities. He said domestic precision machinery industry has competitive edge in the world marketplace because of the manufacturers' efforts to develop large-sized machines over the past several years.

Domestic machine-tool industry has seen outstanding performance in both output and sales over the past few years. Some leading manufacturers in this line, including Victor Taichung Machinery Works Co., You Ji Machine Industrial Co. and Chi Fa Machinery Manufacturer Co., have set a goal to secure NT$10 billion (US$309.59 million) in annual sales in the years to come.

Victor Taichung president Bert M.H. Huang noted his company registered NT$5.6 billion (US$173.37 million) in sales last year and has set operating direction for this year. In addition to consolidating the operation of Taiwan headquarters, the company will make all-out efforts to develop the mainland China market. Huang said his company will utilize the nascent equipment-leasing providers to help mainland customers procure machinery in a cost-effective way. This year, the company will introduce large-sized plastic injection molding machines and machining centers in the mainland marketplace. The company said it would push up the sales of its operations in Shanghai and Guangzhou by over 50% year-on-year in 2008. By doing so, the company will be able to secure NT$10.3 billion (US$318.88 million) in combined sales this year.

With the launch of the newly developed FA2715L double-column machining center, Chi Fa has targeted to post NT$10 billion (US$309.59 million) in annual sales in the years to come.

You Ji general manager Wang Cheng-jen said his company would kick off an ambitious plan to set up large-sized plants in Taiwan, mainland China and Brazil by the end of this year. Besides the establishment of the large-sized plants, the company would also invest in such new product lines as double-column milling machines, horizontal milling machines, and floor-type boring/milling machines this year. The company predicted it would be able to challenge NT$10 billion (US$309.59 million) in annual sales in 2015.