Taiwan-to-U.S. Machine-tool Exports Grow 80% YoY in First Half

Taipei, Aug.24, 2012 (CENS)--Despite uncertain global economic outlook due to debt crisis in Europe and slowdown in China, Taiwan's machine tool exports increased 9% to US$2.09 billion in the first half, said R.X. Yan, chairman of Tongtai Machine & Tool Co., a machine-tool maker in Taiwan.

While China remains Taiwan's biggest export market for machine tools, in the first half China accounted for 34% of Taiwan's total exports of machine tools, down from 43.4% last year, with a 14.5% year on year (YoY) decrease to US$790 million. The U.S. is Taiwan's No.2 market for such machines, and saw exports from Taiwan in the first half surging to 12% of total, up from 7% YoY and shooting up 89% YoY to US$249 million. Thailand has become Taiwan's No.3 export destination, with machine tool exports in the first half increasing an annual 85%.

Yan said that Asia Pacific Elite Corp., an affiliate of Tongtai, invested about NT$300 million (US$10 million) to build a new plant in the Taichung City Precision Machinery Innovation Technology Park, central Taiwan, which is expected to come online in September to produce 5-axis high-speed machining centers for automotive and aerospace equipment processing markets.

Yan pointed out that Tongtai mainly supplies small & mid-sized vertical or horizontal machining centers and multi-tasking turning centers, with approximately 80% capacity utilization currently.

J.Q. Xiao, deputy mayor of Taichung City, indicated that nearly 90% of Taiwan's machine-tool plants are in Taichung, with the “Taichung City Precision Machinery Innovation Technology Park” expected to create 20,000 jobs in its first and second period of development, and NT$60 billion (US$2 billion) in production value.