Taiwan's Machine Tool Makers Enjoy Swarming Orders

Taipei, Nov. 20, 2012 (CENS)--After undergoing sales recession in October, Taiwan's machine tool makers as a whole have begun seeing business rally again with swarming orders that are estimated to keep production lines of some of the manufacturers running at full capacity until the end of the fourth quarter.

Last month, most of the island's leading machine tool makers reported revenue contraction due chiefly to weak demands in mainland China. They included Tongtai Machine & Tool Co., Ltd., Shieh Yih Machinery Industry Co., Ltd., Roundtop Machinery Industries Co., Ltd., Falcon Machine Tools Co., Ltd., AWEA Mechtronic Co., Ltd., Goodway Machine Corp., Victor Taichung Machinery Works Co., Ltd., Kao Fong Machinery Co., Ltd. and Taiwan Takisawa Co., Ltd.

Although many of them are conservative about business outlook for this quarter and next, they are not pessimistic in light of increased orders secured for this month and next.

AWEA, Goodway, Kao Fong, Falcon and Taiwan Takisawa have even landed orders that will keep their production lines humming until the end of the fourth quarter and begun taking orders for the first quarter of 2013.

Executives of AWEA and Goodway said the two companies together secured NT$200-300 million (US$6.8-10 million at US$1:NT$29) or orders at a machine tool trade fair recently held in Taichug, central Taiwan. AWEA is Goodway's subsidiary.

Goodway now has NT$700 million (US$24 million) of orders in hand, which will keep its production running at full capacity in the coming two months. AWEA has so far secured NT$900 million (US$31 million) of orders.

Victor Taichung executives pointed out the company landed some NT$100 million (US$3.4 million) in orders during the Taichung show and is still tracking two potential deals.

Kao Fong executives pointed out that the company has recently received orders for 30 small-size machining centers from buyers in mainland China and its mainland Chinese dealers have secured at least NT$300 million (US$10 million) of orders.