Taiwan's machinery output up 19.8% in Q1

Taipei, May 6, 2005 (CENS)--Overall production value of Taiwan's machinery industry amounted to NT$131.3 billion (US$4.18 billion at US$1:NT$31.4) in the first quarter of this year, representing an increase of 19.8% from the corresponding period of last year, according to a survey conducted by the government-backed Industrial Technology Research Institute (ITRI).

ITRI carried out the survey as one of the IT IS (Industrial Technology Intelligence Services) programs commissioned by the Industrial Technology Department of the Ministry of Economic Affairs.

Some largest-sized manufacturers of machine tools boasted they have seen a considerable growth in orders from the so-called four ‘BRIC' nations, including Brazil, Russia, India and mainland China, since the beginning of this year. Machine tool is the largest export item among Taiwan-made machines.

Taiwan's machinery industry enjoyed a high-level growth last year with total production value reaching NT$542.3 billion (US$17.27 billion), which was contributed by the recovery of the global economy and the strong demand of the mainland market.

ITRI predicted the local machinery industry to keep growing this year because of the increased demand for electronics and information-technology products, automobiles and consumer goods.

The production index of the domestic machinery industry hit a peak of 118.02 points in 2000 but declined by 18.02% in 2001, followed by a steady performance in 2002 and 2003. The index grew 20.52% year-on-year to reach 136.05 points last year.

Liu Hsin-hung, industrial analyst to the IT IS program, said Taiwan's production value of metal-cutting machine tools amounted to NT$13.2 billion (US$420.38 million) in the first quarter of this year, followed by metal molds and dies with NT$12.3 billion (US$391.71 million), plastics and rubber processing machines with NT$11.2 billion (US$356.68 million), and metal-forming machine tools with NT$5.1 billion (US$162.42 million).

The IT IS statistics also showed Taiwan imported NT$190.6 billion (US$6.07 billion) worth of machinery in the first quarter of this year, up 27.3% from the like period of last year. Of the total imports, electronic and semiconductor manufacturing equipment accounted for NT$71.4 billion (US$2.27 billion), up 6.7% annually; metal-cutting and metal-forming machine tools came to NT$6 billion (US$191.08 million); special-purpose production equipment and chemical machinery amounted to NT$17.6 billion (US$560.6 million) and NT$11.4 billion (US$363.05 million), respectively.

Taiwan exported NT$105.2 billion (US$3.35 billion) wroth of machinery in the first quarter of this year, up 14.5% year-on-year. Exports of metal-cutting machine tools grew 32% to NT$14.8 billion (US$471.33 million), and shipments of metal-forming machine tools soared 44% to NT$5.5 billion (US$175.15 million), followed by textile and apparel machinery with NT$9.1 billion (US$289.8 million), plastics and rubber processing machinery with NT$7.7 billion (US$245.22 million).

Some large-sized machine-tool makers claimed they saw outstanding business performances in the first quarter. Of them, Victor Taichung Machinery Works Co. boasted NT$1 billion (US$31.84 million) in sales in the first quarter and will challenge NT$5 billion (US$159.23 million) for the entire year; Tong-Tai Machine Tool Co. posted NT$1.01 billion (US$32.16 million) in first-quarter sales, up 8.8% from the same period of last year. The company will also target NT$5 billion (US$159.23 million) for whole-year sales.

Falcon Machine Tools Co., the island's largest manufacturer of CNC (computerized numerically controlled) grinding machines, said it registered NT$308 million (US$9.8 million) in sales in the first quarter, an increase of 12.5% over a year earlier.

Awea Mechantronics Corp. posted NT$625 million (US$19.9 million) in sales in the first quarter of this year, representing a whopping 70.91% annual growth. Jeng Feng Technology Inc. saw first-quarter sales grow 11.9% year-on-year to NT$1.61 billion (US$51.27 million).