Taiwan's Machine-tool Exports Grow 9.3% YoY in First 8 Months

Taipei, Oct.1, 2012 (CENS)--With stronger-than-expected demand from the U.S., and a rebounding export growth to China in July and August, Taiwan's machine tool exports in the first eight months grew 9.3% year on year (YoY) to NT$2.87063 billion (US$95.69 million), becoming the only domestic industry with growing exports.

Z.Q. Wang, secretary general of TAMI (Taiwan Association of Machinery Industry), pointed out that Taiwan's machine tool exports in August increased 5.3% YoY to NT$382 million (US$12.73 million), higher than monthly average of NT$350 million (US$11.67 million) in the first half, exceeding NT$2.8 billion (US$93.33 million) from Jan.-Aug., 70% of 2011's performance.

Wang said that demand from the U.S. was stronger than expected, especially for aerospace, automobile, energy resources, and medical businesses. For instances, 5-axis machining centers are used in aerospace and medical industries; while large-sized machines are necessary for oil and gas exploration.

Wang indicated that due to uncertain economic outlook in the fourth quarter, U.S customers tend to choose cost-effective products with prompt delivery, benefiting Taiwanese machine tool makers.

Despite export decline in every month in the first half, exports to China, which is Taiwan's biggest export destination of machine tools, grew consecutively in July and August, with a 14.8% YoY increase to US$141 million in July, and a 18.4% YoY growth to US$144 million in August. Other export markets including Thailand, Indonesia, and Turkey also witnessed growths.

Wang said that the EU debt crisis has negatively influenced Taiwan's machine tool exports to Germany and Netherland in the second half.