Taiwan's Machine Tool Exports Grow 10.9% in First 11 Months of 2008

Taipei, Feb. 2, 2009 (CENS)--Taiwan exported US$3.49 billion worth of machine tools in the first 11 months of 2008, representing a moderate 10.9% year-on-year growth, although the exports showed an annual decline of 20.5% in November alone, according to customs-cleared statistics compiled by the Taiwan Machine Tool Foundation (TMTF).

Exports of metal-cutting machine tools amounted to US$2.78 billion in the first 11 months of last year, up 12.5% year-on-year and those of metal-forming machine tools came to US$710.47 million, up 5.2%.

A further breakdown indicated that outbound shipments of machining centers, lathes, and drilling, boring and milling machines grew 9.5%, 27.9%, and 5.1%, respectively. Exports of grinding machines edged down 0.1%. In terms of metal-forming machines, exports of presses and shearing machines grew 2.8% and those of other metal-forming machines shot up 16.1%.

The TMTF said the global financial crisis has undermined exports of Taiwan-made machine tools since November of 2008. For the major categories of domestically made machine tools, exports for machining centers, lathes, drilling, boring and milling machines, grinding machines, electric discharge machines, sawing machines, presses and shearing machines, as well as other metal-forming machines dropped 27.2%, 2.8%, 13.7%, 8.4%, 34.3%, 11.1%, 26.1% and 1.4% year-on-year, respectively in November alone.

Hong Kong and mainland China together were the largest outlet by absorbing US$1.041 billion worth of Taiwan-made machine tools in the first 11 months of 2008, down 9.5% year-on-year and accounting for 29.9% of the total exports. The U.S. ranked second with US$314.44 million, up 2.1% and commanding 9%. Germany took third place with US$206.8 million, up 51.5% and accounting for 5.9%.

Other major export outlets, in descending order, were Turkey (up 5.7%), Italy (up 35.7%), Brazil (up 108%), the Netherlands (up 4.7%), India (up 48.2%), Thailand (up 6.4%), South Korea (up 8.8%), Vietnam (up 63.3%), Malaysia (up 4.8%), United Kingdom (down 2.7%), Japan (down 9.2%), and Indonesia (up 47.2%).

The TMTF's tallies also showed Taiwan imported US$1.473 billion worth of machine tools from abroad in the first 11 months of 2008, down 36.9% year-on-year. Imports of metal-cutting machine tools amounted to US$1.38 billion, down 38.5% and those of metal-forming machine tools came to US$93.07 million, up 3.5%.

TMTF noted major imported machine tools were non-conventional machine tools, machining centers, lathes, boring and milling machines, and grinding machines. After experiencing two years of successive growth, the imports saw a sharp decline in the first 11 months of last year.

Japan was the island's largest import source by selling US$897.76 million worth of the products to Taiwan in the first 11 months of last year, down 12.1% year-on-year and accounting for 60.9% of the total imports. The U.S. came second with US$285.89 million, down 68.6% and commanding 20.1%. Germany ranked third with US$87.64 million, up 35.7% and accounting for 5.9%.

C.C. Wang, CEO of the TMTF, said exports of Taiwan's machine-tool industry have been on the wane since the fourth quarter of 2008, when global financial tsunami began impacted the global economy. Wang called for domestic machine-tool manufacturers to develop innovative products and strive to boost the added-value of their products.

Wang said domestic machine-tool industry encountered such problems as the big gyration of local currency against the U.S. greenback, the steep rise of steel and cast-iron prices, and the sharp shrinkage of export orders.

Exports of Taiwan-made Machine Tools by Products, Jan.-Nov. 2008 Unit: US$1,000
Products	Jan.-Nov. 2007	Jan.-Nov. 2008	Annual Change (%)
EDM, Laser-cutting Machines	133,528	145,357	8.9
Machining Centers	1,032,925	1,131,456	9.5
Lathes	627,696	802,891	27.9
Drilling, Boring, Milling Machines	328,050	344,869	5.1
Grinding Machines	180,679	180,508	-0.1
Shaping, Sawing, Gearing Machines	168,058	175,140	4.2
Presses and Shearing Machines	554,243	569,552	2.8
Other Metal-forming Machines	121,392	140,924	16.1
Total	3,146,571	3,490,697	10.9
Source: Taiwan Machine Tool Foundation

Imports of Machine Tools by Taiwan in Jan.-Nov. 2008 by Products Unit: US$1,000
Products	Jan.-Nov. 2007	Jan.-Nov. 2008	Annual Change (%)
EDM, Laser-cutting Machines	1,960,520	1,089,942	-44.4
Machining Centers	47,312	50,871	7.5
Lathes	84,618	77,229	-8.7
Drilling, Boring, Milling Machines	38,733	38,596	-0.4
Grinding Machines	79,540	88,499	11.3
Shaping, Sawing, Gearing Machines	33,548	35,488	5.8
Presses and Shearing Machines	71,089	79,255	11.5
Other Metal-forming Machines	18,843	13,819	-26.7
Total	2,334,203	1,473,699	-36.9
Source: Taiwan Machine Tool Foundation