Machine-tool Makers Go Green to Cope With High Fuel Prices

Taipei, July 30, 2008 (CENS)--As high oil prices impact sales of machine tools worldwide, leading domestic manufacturers, including Chin Fong Machine Industrial Co. and Far East Machinery Co., aim to find the silver lining in the gloomy climate by focusing on developing green products featuring energy-saving, lightweight etc. to cope with the rising awareness for energy-saving and carbon-reduction requirements.

Chin Fong will step up development of high-tensile steel-plate forming machines for automobile industry, high-speed pressing machines for processing magnesium-lithium, magnesium-aluminum light metals, and intelligent metal-forming machines, and energy-saving equipment. The above-mentioned products will be debuted at the Taipei International Machine Tool Show (TIMTOS) slated for March 2-7, 2009 at the Taipei World Trade Center.

Chao Tse-yen, president of Chin Fong, noted his company has established dynamic real-time cost system to rapidly quote selling prices to offset the impact from price hike in raw materials and the volatile foreign exchange rates.

Thanks to its procurement of NT$200 million (US$6.6 million at US$1:NT$30.3) low-price steel and pushing up worker productivity by 18% in the first quarter of this year, Chin Fong saw earnings reach NT$136 million (US$4.48 million) in the first five months of this year, keeping pace with that the year earlier.

Far East chairman Chung Kuo-hui noted the world demand for mining, oil-exploration and large-sized power generators is on the rise, despite the worsening shortage of raw materials and energy sources. Accordingly, the company has been enhancing development of two large-sized machine tools, including a 250-ton boring/milling machine and a floor-type boring/milling machine, which are used for producing large-sized molds and components. These innovative products will be showcased at the 2009 TIMTOS.

At present, Far East commission its affiliate-Factory Automation Technology Co. (FATEC) to produce such machine tools as CNC (computerized numerically controlled) lathes, aluminum-wheel processing machines, and horizontal boring/milling machines.

FATEC said it posted NT$700 million (US$23.1 million) in sales in the first half of this year, up approximately 20% from a year earlier. Of its diverse product lines, boring/milling machines accounted for 60% of its total sales in the first half of this year, compared with 50% the year earlier. The company said it would continue to expand production of boring/milling machines as a niche product to offset the impact of economic slowdown.