Taiwan's Leading Machine-tool Firms Raise Investments in China

Taipei, April 12, 2011 (CENS)--Buoyed by the promising prospects of the cross-Taiwan Strait ECFA (economic cooperation framework agreement), Taiwan's leading machine-tool manufacturers, including Awea Mechantronic Co., Goodway Machine Corp., Chin Fong Machine Industrial Co., Shieh Yih Machinery Industry Co. and Fair Friend Group, are speeding investments in China and setting up new plants this year.

Awea chairman Edward Yang says the ECFA has attracted ample orders from China since the beginning of this year. In addition, the implementation of China's 12th five-year economic development plan, including the building of high-speed railway, trucks and construction machinery, will also realize massive opportunities for Taiwan's machine-tool manufacturers.

Awea and its affiliate—Goodway—have invested US$16 million combined to acquire 100 acres in Wujiang, Jiangsu province to set up a new plant which will likely come online in the beginning of 2012.

Fair Friend Group has just completed expansion of its Xiaoshan No. 2 plant in Zhejiang province, enabling monthly capacity to be raised to 300 machining centers from the past 200. The group has also rent a plant around Xiaoshan to produce 300 machine tools per month. Its new plant in the Jiangdong Industrial Park in Zhejiang province will begin volume production in April with monthly output reaching 300 machine tools.

The group will also build two new plants covering 720,000 square feet in the Xiasha Development Zone, Hangzhou, Zhejiang province by the end of this year, to begin mass production of large, floor-type boring machines, vertical lathes and double-column machining centers in the second quarter of 2012.

In partnership with Japan's Toyota Group, Fair Friend will soon build four new plants in the Jiangdong Industrial Park, with a monthly output of 700 machine tools, including lathes and engraving machines.