Taiwan Makers of CNC Lathes Ready to Turn to More Prosperous Path

Partnering with Japanese key part

Taiwan's manufacturers of conventional and automated lathes saw sales and earnings plummet in the first 11 months of 2009 due to sagging demand after the global meltdown.

Instead of surrendering to collapsing demand, many makers in Taiwan have been developing innovative models with versatility that streamline efficiencies to create new demand.

Some experienced makers claim they have developed multifunctional CNC models that cut, mill, and grind, helping to upgrade machining to shorten production time.

Most producers in Taiwan hope developing such special-purpose machines will help broaden bigger market shares, with Taiwan having entered the World Trade Organization (WTO) that theoretically would level the playing field.

Many makers in Taiwan say that China has been a robust business environment due to the comparatively rapid economic growth. Such prospect looks even better when China aims to develop the yet untapped western region, which will call for heavy-duty machine tools as automatic lathes.

Better Times Ahead

Reports of recovering demand in other nations have also given Taiwan's lathe producers hope that better sales are ahead. Taiwan's makers of lathes have been targeting a fast-growing segment with advanced models: the tech sector that adopts high-precision, high-speed lathes.

Customs-cleared statistics compiled by the Taiwan Machine Tool Foundation (TMTF), show that Taiwan exported US$355.549 million of lathes in the first 11 months of 2009, down 55.7% from US$802.891 million a year earlier. The top-10 export outlets include, in descending order, Hong Kong and China, the U.S., Germany, Turkey, Brazil, Thailand, Malaysia, the Netherlands, South Korea, Italy, and India.

C.C. Wang, CEO of the TMTF, says: “Based on declining sales in the second half of last year, the industry will soon recover sometime in the first half of this year.”

Automatic Lathes

Lico Machinery Co., Ltd., established in 1978, is known for making lathes as industrial-duty, cam-operated single-spindle automatic models, as well as CNC machining centers.

This maker specializes in designing machinery for the metalworking sector, and is a popular supplier to operators in aviation, auto-making, PCs, plumbing fittings, optical instruments and other sectors. A textbook case of ideal management, Lico's in-house technicians work closely with subcontractors to have built considerable reputation with global buyers.

Headquartered in Shenkang, Taichung County, central Taiwan, Lico currently offers mainly multi-slide CNC automatic lathes, CNC automatic lathes, CAM type automatic lathes, and CNC & CAM type automatic lathes.

Using the acronym and brand “LICO” (latest technology, internationalized products, complete service, overall reliability), this maker continues to progress to improve product quality, also believing the key to achieving such goal is to offer versatile, multifunctional products and timely, effective services.

Award-backed Quality

Proving its quality with a long list of awards, Lico became ISO9000 approved in 1996 and CE Mark certified in 2001. Its multi-slide LNT-42 CNC machines won the Taiwan Symbol of Excellence Award from the Taiwan External Trade Development Council in 1993, with the same award given to its LA32H automatic lathe and complex CNC lathe in 1994 and 1999.

Lico, exporting some 75% of output and distributing the rest domestically, claims it has exported to over 50 nations, including main markets as China, Southeast Asia, the U.S., Europe and Latin America.

One of its best sellers is the LNT36/42/51/65 S-series and D-series multi-slide CNC automatic lathe. The S-series features 36mm up to 65m in capacity with main spindles ranging from 4,000 rpm to 6,000 rpm. The machine's multiple tools can perform machining jobs simultaneously.

Strategic Alliance

Using the tried-and-true approach of strategically allying with the Japan-based Mitsubishi Electric Corp. in February 2008, Quick-Tech Machinery Co., Ltd., a leading maker of CNC (computerized numerically controlled) lathes in Taiwan, has been building global recognition. To facilitate tech transfer and management know-how, Quick-Tech in June 2008 brought onboard Muga of Germany as a big shareholder.

Such strategy has enabled Quick-Tech to use dual brands: Quick-Tech and Muga-Tech. Quick-Tech will promote the “Muga-Tech” line, developed with tech transfer from Muga, in Germany and the in-house-developed “Quick-Tech” line elsewhere worldwide.

“As a professional manufacturer of machine tools, I always think of launching international cooperation with foreign well-established manufacturers in the same field to enhance product quality,” says K.C. Jacky Huang, managing director of Quick-Tech.

Scheduled Planning

This maker has not achieved success without scheduled planning. For instance, the company focused on “multiple machining” and “simultaneous multiple machining” in 2003 and 2005, and on “intelligent cutting” in 2008 by introducing multi-functional machinery enabled by robotic arms.

This maker at the end of 2008 announced its success in developing a multi-functional machining center with robotic arm, also saying that the unit is more compact than conventional counterparts, as well as saving installation cost. Speaking like a true insider, Jack Huang says: “Intelligent machining concept has been in existence for a few years, especially in highly industrialized Europe, the U.S. and Japan. Using modular design also enables us to maximize efficiency when developing a brand-new product line.”

Huang says using advanced technology allows Quick-Tech to build unique products, an important strategy that enables the firm to overcome price-fixing. Coupled with using titanium and platinum to build its line, Quick-Tech is literally unbeatable in terms of lightweight, durability and high precision in machining.

After-sales Service Upgraded

Strategically allying with Mitsubishi Electric of Japan has also helped Quick-Tech to substantially upgrade manufacturing techniques as well as after-sale services, for the Japanese are renowned for demanding efficiency. It was also the first time for Quick-Tech to sign a deal with key-component supplier, where in the past Quick-Tech concentrated on making CNC-lathes with open-architecture PCs.

Huang says that his company is in transition: aiming to build multi-tasking CNC lathes that need more powerful CNC-controls to realize sophisticated machining.

Mitsubishi currently concentrates on selling servo components and CNC devices for machining centers and tapping centers, rather than CNC lathes, to Taiwan's machine-tool market. The alliance will see Mitsubishi expand presence in Taiwan to offer customized products and services to Quick-Tech.

Again revealing perhaps another truism in industry, Huang says: “We try to adopt product differentiation, an approach that has worked well since our founding; while its product integrating skills have also helped the design of multi-functional CNC machines.”

Huang says Quick-Tech products are highly visible worldwide, including markets as South Africa, Egypt, Norway, United Kingdom, Germany, Peru, Brazil, Argentina and Mexico, claiming long presence in South Africa, Egypt, Norway, United Kingdom and Germany.

As its peers, Quick-Tech initially engaged only in assembly. But having gained increasing manufacturing techniques has enabled the maker to develop in-house parts for multi-functional CNC lathes: the company's in-house production rate is 60%, which has helped to raise profitability.

Heavy-duty CNC Lathes

Another dedicated manufacturer in this line is CNC-TAKANG Co., Ltd., whose long-term experience enables the supply of heavy duty, ultra-low-speed CNC lathes and machining centers.

Both a leader and pioneering in Taiwan, CNC-TAKANG is one of the earliest on the island to make double spindle, double turret CNC lathes, backed by over 25 years of manufacturing experience.

Wide Ranging Line

This maker's current line includes conventional, CNC lathes (flat & slant bed), double spindle & double turret CNC lathes, CNC vertical lathes, special drilling machines for flange of oil industry, vertical machining center, high-speed vertical machining centers, double column machining centers, high-torque heavy duty CNC lathes, and big bore lathes for oil rigs.

The features of heavy duty CNC lathe LC & LD series are box slide way for X axis (cross slide), four-step spindle speed (auto change by M code), high-rigidity headstock and gears with width range speed ratio, high spindle torque and power at low spindle speed, high-rigidity machine bed, hydraulic tailstock with rotating quill for higher rigidity support, and front + rear chip conveyor. The accuracy meets the JIS or DIN standards. LC & LD series also can have optional equipment for cutting pass through steady rest.

More than promoting quality, CNC-TAKANG has invested considerably in testing instruments to assure meeting global standards, while its R&D team enables its continual product development program at its plant in Taichung City, central Taiwan.

Clearly export-oriented, CNC-TAKANG exports some 90% of output, mainly to the EU, the U.S., Russia, China, Canada, and Southeast Asia.