Taiwan's machine tool exports surged 26.4% in first 5 months

Taipei, July 28, 2005 (CENS)--Exports of Taiwan-made machine tools amounted to US$1.058 billion in the first five months of this year, up 26.4% from the corresponding period of last year, according to customs-cleared statistics compiled by the Taiwan Machine Tool Foundation (TMTF).

Of the total exports, metal-cutting machine tools accounting for US$792.37 million, up 27% from a year earlier, and metal-forming machine tools US$265.62 million, up 26%. In the specific metal-cutting category, machining centers grew 37% year-on-year in exports, lathes up 37%, electric discharge machines 29%, and sawing machines 45%, with the remainders growing at a smaller pace. As to the metal-forming category, presses and shearing machines grew 20% annually and the remainders enjoyed an annual growth of 53%.

Hong Kong and mainland China together were the largest export outlet by absorbing US$423.96 million worth of Taiwan-made machine tools in the first five months of this year, up 8% annually and accounting for 40.1% of the total exports. The U.S. came second with US$103.8 billion, up 69% and commanding 9.8%. The third place went to Turkey with US$60.04 million, up 35% and accounting for 5.7%.

Other major export outlets, in descending order, were Thailand, Holland, South Korea, United Kingdom, Vietnam, Italy, Malaysia, Germany, Japan, Singapore, Indonesia, India, Brazil, and Canada.

TMTF statistics also showed Taiwan imported US$649.59 million worth of machine tools in the first five months of this year, down 13.2% year-on-year. Imports of metal-cutting machine tools came to US$602.3 million, down 14% annually and metal-forming machines US$47.28 million, up 4%.

Wang Cheng-ching, CEO of TMTF, attributed the decline in machine tool imports to the dwindled need for imported machines by the high-tech sector. Major imported machine tools in the first five months included non-conventional machine tools, machining centers, lathes, boring and milling machines, and grinding machines.

Japan was the largest import source, supplying US$375.59 million worth of machine tools to Taiwan in the first five months of this year, up 5% and accounting for 57.8% of the total. The U.S. stood at the second place with US$149.92 million, down 49% and commanding 23.1% o f the total. Germany ranked third with US$34.46 million, up 6% and accounting for 5.3%.

Taiwan's machine-tool industry enjoys a very promising outlook as many manufacturers in this line has seen substantial growth in orders received. Wang said domestic machine-tool manufacturers would see increased growth in orders from domestic market, mainland China, Southeast Asia, Southwestern Asia, the U.S. and East Europe in the months to come.

Exports of Taiwan-Made Machine Tools in Jan.-May 2005 by Products Unit: US$1,000
Products	Jan.-May 2004	Jan.-May 2005	Annual Growth
EDM, Laser Cutting Machines	46,766	60,309	29%
Machining Centers	224,441	307,503	37%
Lathes	145,520	199,708	37%
Drilling, Boring, Milling Machines	116,355	104,304	-10%
Grinding Machines	52,530	61,836	18%
Shaping, Sawing, Gearing Machines	40,522	58,717	45%
Presses & Shearing Machines	170,540	204,226	20%
Other Metal-Forming Machines	40,119	61,400	53%
Total	836,793	1,058,003	26%
Source: Taiwan Machine Tool Foundation