Machine-tool Production Value to Top US$5.5 B. in 2012

Taipei, Feb. 1, 2012 (CENS)--The production value of Taiwan's machine-tool industry will grow 10% to US$5.5 billion in 2012 from last year's US$5 billion, forecasts the Taiwan Association of Machinery Industry (TAMI), whose president

C.C. Wang also predicts the industry's export value to grow 10% to 15% this year.

The cross-Taiwan Strait economic cooperation framework agreement (ECFA) helped Taiwan's machine-tool industry's export value exceed US$4 billion last year, which could make the island the world's third-largest exporter.

In the middle of last year, many domestic machine-tool manufacturers were pessimistic toward the industry, but recently said the industry is performing better than expected, as some clients in the electronics sector are beginning to procure production equipment, including machine tools, to boost production.

The early stage of the ECFA allowed seven Taiwan-made machine tools, including CNC horizontal lathes, CNC surface grinding machines, ball screws and linear guideways, to to shipped to China at 5% duty, which will go to zero starting this year.

Wang said Taiwan's machine-tool industry exported US$350 million of products in December of last year, up 18.9% year-on-year. Of this, exports of domestically made machine tools to the U.S. in December last year were up 112% from a year earlier.

Although China has become the world's largest consumption market of machine tools, Wang still urges domestic manufacturers to diversify markets by tapping the U.S., Thailand, Germany and Turkey, as well as calling for the government to resume talks with China to negotiate duty-free status for machining centers in the ECFA, which will benefit over 100 manufacturers.