Taiwan's exports, imports of machine tools up sharply in first 7 months

Taipei, Oct. 4, 2004 (CENS)--Thanks to the increased influx of orders in the fourth quarter of last year, Taiwan's machine-tool industry saw exports post an annual growth of 35.9% to reach US$1.24 billion in the first seven months of this year, according to statistics compiled by the Taiwan Machine Tool Foundation (TMTF).

The same tallies indicated that exports of metal-cutting machine tools amounted to US$896 million in the first seven months of this year, up 39% from the corresponding period of last year. Exports of metal-forming machine tools reached US$307 million, up 29%.

Of the major metal-cutting machine tools, machining centers enjoyed an annual export growth of 51% in the first seven months of this year, lathes, 42%; electric discharge machines, 36%; grinding machines, 35%, boring and milling machines, 29%. In terms of metal-forming machine tools, pressing, forging and shearing machines grew by 35% annually, with others growing by 9%.

Hong Kong and mainland China together remained the largest export outlet for Taiwan-made machine tools by absorbing US$569 million in the first seven months of this year, up 31% from the same period of last year and accounting for 47.3% of the total exports of the product. The U.S. ranked second by taking up US$94 million, up 35% and accounting for 7.8%. Turkey ranked third with US$68 million, representing an annual increase of 92% and accounting for 5.7% of the total. Other major export outlets included Thailand, Malaysia, the Netherlands, South Korea, India, Italy, Germany, Vietnam, Britain, Japan, Singapore, Indonesia, South Africa, Canada, and Australia.

TMTF statistics also showed Taiwan imported US$1.056 million worth of machine tools in the first seven months, up 160% from the same period of last year. Of the total, imports of metal-cutting machine tools amounted to US$991 million, up 177% and that of metal-forming machine tools reached US$65 million, up 37%.

TMTF chief executive officer Wang Cheng-ching attributed the substantial growth in imports of machine tools to the strong demand for imported sophisticated machine models by high-tech industries. Major import items included non-conventional machine tools, machining centers, and boring and milling machines.

In terms of metal-forming machine tools, imports of pressing, forging and shearing machines grew by 31% annually in the first seven months of this year with others growing by 71%. Wang said the statistics showed such conventional industries as automobiles and metal products have seen increased demand for imported machines. Demand for imported machine tools by such high-tech industries as semiconductors, information technology, electronics, communications, and optoelectronics have recovered over the past two years.

Japan was the island's largest import source of the product, supplying 49.9% or US$520 million of the total imports in the first seven months of this year, up 92% from the same period of last year. The U.S. ranked second with US$384 million, up 492% and accounting for 36.4% of the total imports. Germany followed with US$46 million, up 80% and accounting for 4.4%.

Wang noted many domestic manufacturers of machine tools saw influx of orders in the first half of this year, with some meeting a strong demand for shortening delivery schedule, which shows domestic economic climate has turned better.

Seeing the increase of orders from domestic market, mainland, Southeast Asia, Southwest Asia, the U.S. and East Europe, Wang called for domestic manufacturers of machine tools to grasp the best opportunities to expand market share by introducing innovative products and elevating their added value.