Taiwan's Machine-Tool Industry Scores 59.9% Export Growth in First Four Months of 2011

Taiwan exported US$1.213 billion worth of machine tools in the first four months of 2011, representing a 59.9% year-on-year growth, according to customs statistics compiled by the Taiwan Machine Tool Foundation (TMTF). Of the total, metal-cutting machine tools accounted for US$980.35 million, up 67.1%, and metal-forming machine tools for US$233.06 million, up 35.3%

The fastest growing export items among domestically made machine tools in the first four months were machining centers, which increased by 81.8%; lathes, 63%; grinding machines, 59.3%; drilling, boring and milling machines, 51.9%; presses and shearing machines, 33.4%; and other metal-forming machine tools, 41.8%.

Mainland China and Hong Kong together ranked as the top export market by absorbing US$527.31 million worth of Taiwan-made machine tools in the first four months of this year, up 52.2% from a year earlier and accounting for 43.5% of total exports. Second place went to the U.S. with US$81.53 million, up 138.9% and commanding 6.7%. Turkey stood in third place with US$56.73 million, up 119.4% and accounting for 4.7% of the total.

Other major export outlets, in descending order, were Thailand, Brazil, India, Germany, Malaysia, Indonesia, South Korea, the Netherlands, Vietnam, Japan, the United Kingdom, and Russia.

The TMTF statistics also show that Taiwan imported US$280.72 million worth of machine tools in the first four months of this year, up 69.1% year-on-year. Of this total, metal-cutting machine tools accounted for US$240.77 million, up 71.7% from a year earlier, and metal-forming machine tools made up US$39.95 million, an increase of 54.9%.

TMTF chief executive officer C.C. Wang reported that major imported machine-tool items in the first four months of 2011 were non-conventional machine tools; machining centers; lathes; drilling, boring, and milling machines; and grinding machines.

Wang noted that demand for imported machine tools by such conventional industries as precision components and metal-product processing was on the increase in the first four months of this year. Demand for imported machine tools by such high-tech industries as semiconductors, information, electronics, communications, and optoelectronics also rebounded in the first quarter, after suffering sharp decline in 2009.

In terms of import sources, Japan ranked first by selling US$181.09 million worth of machine tools to Taiwan in the first four months, up 77.4% from a year earlier and commanding 64.5% of total imports. Second place went to Switzerland with US$28.52 million, up 394.9% and accounting for 10.2%. Germany was third with US$16.39 million, up 14.1% and making up 5.8%.

Market information collected by the TMTF indicates that the major machine-tool producing nations of Asia, the European Union, and North America will see increases in production and exports in 2011 because of the economic recovery. A survey conducted by the Japan Machine Tool Builders' Association (JMTBA), for instance, shows that Japan received orders worth 437.6 billion Japanese yen in the first four months of 2011, up 58.3% from a year earlier. Japan shipped 368.3 billion worth of machine tools in the first four months, up 50.8%.

Wang commented that Taiwan's machine-tool industry has been enjoying a sharp rebound since the beginning of 2011. To fill the demand from foreign customers, in fact, some domestic firms are having to work overtime and hire more workers.

Analysis carried out by the TMTF shows that the orders being received by domestic machine-tool manufacturers are mostly rush, short-term orders, prompting the producers to beef up their rapid-response and fast-delivery capabilities.

Wang noted that the export performance of domestic machine-tool manufacturers in the months to come will be affected by certain factors, including continued sharp increases in the prices of cast iron, an insufficient supply of key components, the appreciation of the New Taiwan dollar against the U.S. greenback, and the zero customs tariffs enjoyed by South Korean rivals when they export products to the European Union market beginning July 1.

Exports of Taiwan-made Machine Tools in Jan.-April 2011, by Product Category Unit: US$1,000
Product	Jan.-April 2010	Jan.-April 2011	Change (%)
EDMs, Laser-cutting Machines	36,540	66,456	81.9
Machining Centers	223,928	407,077	81.8
Lathes	148,748	242,385	63
Drilling, Boring, Milling Machines	88,507	134,438	51.9
Grinding Machines	43,044	68,549	59.3
Shaping, Sawing, Gearing Machines	45,749	61,447	34.3
Presses and Shearing Machines	132,393	176,561	33.4
Other Metal-forming Machines	39,859	56,502	41.8
Total	758,768	1,213,415	59.9
Source: Taiwan Machine Tool Foundation

Exports of Taiwan-made Machine Tools in Jan.-April 2011, by Destination                                                                                                                            Unit: US$1,000
Rank	Nation	Jan.-April 2010	Jan.-April 2011	Change (%)
1	China + Hong Kong	346,366	527,314	52.2
2	U.S.A.	34,131	81,536	138.9
3	Turkey	25,863	56,736	119.4
4	Thailand	33,547	46,909	39.8
5	Brazil	31,929	46,676	46.2
6	India	33,445	44,237	32.3
7	Germany	14,637	37,108	153.5
8	Malaysia	26,313	35,509	34.9
9	Indonesia	19,019	31,370	64.9
10	South Korea	27,352	30,497	11.5
	Others	166,166	275,523	65.8
	Total	758,768	1,213,415	59.9
Source: Taiwan Machine Tool Foundation

Imports of Machine Tools by Taiwan in Jan.-April 2011, by Product Category                                                                                                                                                                            Unit: US$1,000
Product	Jan.-April 2010	Jan.-April 2011	Change (%)
EDMs, Laser-cutting Machines	65,212	99,460	52.5
Machining Centers	11,718	39,126	233.9
Lathes	24,351	31,431	29.1
Drilling, Boring, Milling Machines	11,578	9,661	-16.6
Grinding Machines	14,079	30,392	115.9
Shaping, Sawing, Gearing Machines	13,260	30,702	131.5
Presses and Shearing Machines	24,368	30,639	25.7
Other Metal-forming Machines	1,434	9,316	549.7
Total	166,000	280,727	69.1
Source: Taiwan Machine Tool Foundation

Imports of Machine Tools by Taiwan in Jan.-April 2011, by Origin                                                                                                                Unit: US$1,000
Rank	Origin	Jan.-April 2010	Jan.-April 2011	Change (%)
1	Japan	102,086	181,096	77.4
2	Switzerland	5,764	28,524	394.9
3	Germany	14,371	16,396	14.1
4	China + Hong Kong	9,076	15,688	72.9
5	U.S.A.	9,879	7,875	-20.3
6	South Korea	6,562	4,907	-25.2
7	Italy	2,294	3,513	53.1
	Others	15,968	22,728	42.3
	Total	166,000	280,727	69.1
Source: Taiwan Machine Tool Foundation