Machine-tool Manufacturers in China Speed up Integration

Taipei, August 13, 2008 (CENS)--After Shenyang Machine Tools Co. and Dalian Machine Tool Co. acquired well-established counterparts in the U.S. and Europe to become the world's ninth and 10th concern, respectively, other major machine-tool firms in China are speeding up integration in the sector.

Consolidation among mainland Chinese machine-tool firms has helped escalate operating efficiency, which is expected to threaten small and medium machine-tool manufacturers in Taiwan.

To help domestic machine-tool manufacturers find effective ways to compete against the integration among mainland rivals, the Taiwan Association of Machine Industry (TAMI) recently held a seminar participated by 10 domestic machine-tool firms.

TAMI chairman Fred P.C. Huang, during a presentation in the seminar, called for the government to set up a consultancy to help local manufacturers to find professionals trained in law, finance, accounting and management, suggesting that the integration of domestic machine-tool manufacturers will help to expand operating scale to compete against mainland rivals who are expanding.

With mainland Chinese machine-tool manufacturers helped by authorities to land orders, Huang suggested that Taiwan authorities can also finance local firms to engage in M&As at home and abroad.

TAMI vice president C.C. Wang stressed the integration of mainland Chinese machine-tool manufacturers has helped with product diversification, allowing them to expand into machining centers, lathes, milling machines, electric discharge machines, and pressing machines, which has put threat on domestic counterparts in future operations.