Taiwan's Sewing Machine Makers See Mixed Performance in August

Taipei, Sept.19, 2012 (CENS)--Amid the volatile global economy, Taiwan's leading sewing machine manufacturers, including Zeng Hsing Industrial Co. and Kaulin Manufacturing Co., saw mixed performance in the fourth quarter due to different product focus.

Zeng Hsing, a major contract maker of household sewing machines, saw revenues and shipments in August hit new historical highs. But Kaulin, a maker of industrial sewing machines with own brand, relied only on equipment replacement from international garment makers, with revenues in August decreasing 28.56% year on year (YoY) to NT$190 million (US$6.33 million), and about 10,000 units shipped.

A manager of Zeng Hsing says due to early shipments to Europe and U.S customers in the first half, the firm initially estimated shipments in the third quarter to drop significantly. Despite shipments in August down to 243,900 units from last year's 257,500, the firm still saw revenues up 2.78% YoY to NT$456 million (US$15.2 million), due to depreciating New Taiwan dollars.

Zeng Hsing's shipments in the first eight months grew from 1.68 million units in 2011 to 1.817 million this year, with revenues growing 9.17% YoY to NT$3.181 billion (US$106.03 million), both historical highs.

Zeng Hsing's plant in Vietnam is expected to start construction October 2012 and go online January 2014, with annual capacity doubling from 1.5 million units currently to 3 million, and plants in China and Taiwan estimated to produce 800,000 ~ 1,000,000 units and 50,000 units annually, respectively.

Kaulin saw exports continue to decline since the second half of 2011, due to plant downsizing by global garment makers, hence revenues in August down 28.56% YoY to NT$190 million (US$6.33 million), Jan.-Aug. revenues falling 46.51% YoY to NT$1.42 billion (US$47.33 million), without signs of recovery.