Machine-tool Firms Increase Investments Amid Gloomy Economy

Taipei, Nov. 18, 2011 (CENS)--Taiwan's leading manufacturers of machine tools, including Fair Friend Group, Hiwin Technologies Corp., Goodway Machine Corp., Taiwan Takisawa Technology Co., and Keyarrow (Taiwan) Co., will invest over NT$10 billion in 2012.

To rival Japanese competitors as NSK and THK, Hiwin will invest NT$10 billion to procure land, establish new plants, develop key materials and technologies, slash production costs, and improve manufacturing processes in 2012.

Fair Friend chairman Jimmy Chu said his group will have capital expenditure totaling NT$10 billion in the next five years, of which NT$3 billion will be spent on expansion of production facilities in Taiwan and China.

Keyarrow, a leading manufacturer of slideway covers, sheet-metal enclosures and stamping parts, will invest over NT$500 million to build three new plants in Jiaxing of Zhejiang province, Shanghai Municipality, and Yuxi of Yunnan province, China, in 2012.

Goodway and its affiliate—Awea Mechantronic Co.—have acquired land in the Dapumei Machinery Park, southern Taiwan to build two plants which will begin mass production in 2013 of mass-produced machinery and double-column machining centers, at a cost of NT$3 billion.

Taiwan Takisawa has spent NT$160 million, excluding procurement of land, to build a new plant in Taoyuan County, northern Taiwan to produce starting in January next year large-sized CNC (computerized numerically controlled) lathes, which will raise total capacity by 30% to 50%. An executive of Taiwan Takisawa noted the gloomy economy makes for good timing to launch investments.