Machine-tool Firms See Orders Fully Packed

Taipei, April 22, 2008 (CENS)--Thanks to the influx of orders, Taiwan's leading manufacturers of machine tools, including Awea Mechantronic Co., Tongtai Machine & Tool Co., Goodway Machine Corp., and Roundtop Machinery Co., will enjoy outstanding performance in sales in the second quarter of this year.

Taiwan's machinery industry saw exports grow 13.4% year-on-year to US$4.796 billion in the first quarter of this year, according to statistics compiled by the Taiwan Association of Machinery Industry (TAMI). Of this, the best performer went to the categories of machine tools and relevant parts and components.

In denomination of local currency, Taiwan's machinery industry will see exports grow 24.8% year-on-year to reach NT$152.5 billion in the first quarter. The TAMI attributed the export growth to the increased demand for imported advanced production equipment from domestic high-tech firms.

The TAMI noted such emerging markets as India, Russia and Brazil have shown increased demand for machine tools, leading to the continued growth in orders received by leading domestic machine tool makers.

Tongtai said it has seen continued growth in orders for machine tools from customers of European Union nations, Eastern Europe and Russia. In addition, the company claimed it received orders for 140 units of PCB (printed circuit board) drilling machines in the first quarter of this year, double that of the year earlier. At present, the company has NT$2.9 billion (US$96.02 million at US$1:NT$30.2) orders in hand for PCB drilling machines.

Awea said its orders in hand were valued at NT$1.9 billion (US$62.91 million), sufficient enough to keep its production line fully occupied till September. Europe is the company's largest export outlet, absorbing 30% of the total orders received in the first three months of this year, followed by domestic market and mainland China with each commanding 20% of the total orders.

Roundtop said it has NT$1.2 billion (US$39.73 million) orders in hand. Machining centers dominated the orders, mainly coming from European Union, Eastern Europe and Russia. The company said the orders it has received would keep its production lines busy till September.