She Hong aims for Taiwan's No.1 maker of machining centers

Taipei, Nov. 2, 2004 (CENS)--She Hong Industrial Co., Ltd., one of Taiwan's leading manufacturers of machine tools, will see annual output of CNC (computerized numerically controlled) machining centers reach 1,800 units next year with the inauguration of a new plant in December this year.

She Hong said it has spent NT$250 million (US$7.37 million at US$1:NT$33.9) in the construction of the new plant. The company is famed by its own brand of Hartford.

The inauguration of the new plant will help She Hong replace Yeong Chin Machinery Industry Co., Ltd. As Taiwan's largest manufacturer of CNC machining centers and even catch up with Japan's large-sized producers of Okuma Corporation and Mazak Co.

Just celebrating 50th anniversary on Oct. 28 at its headquarters in Shenkang of Taichung County, central Taiwan, Yeong Chin is one of Taiwan's few machine-tool manufacturers that can survive for more than half a century. With cumulative sales of NT$2.8 billion (US$82.59 million) in the first nine months of this year, the company will see annual sales grow 40% to reach NT$3.5 billion (US$103.24 million) this year.

At present CNC machining centers account for 85% of Yeong Chin's total sales. The company estimated it would be able to sell 1,600 units of CNC machining centers with sales totaling NT$3 billion (US$88.49 million) this year.

Led by president Chen Chien-chih and general manager Yeh Hsin-hua, She Hong entered the machine-tool manufacturing sector 11 years later than Yeong Chin. Differing from Yeong Chin, She Hong only concentrated on the production of CNC machining centers.

She Hong estimated it would be able to sell 1,300 units of CNC machining centers this year with sales totaling NT$3 billion (US$88.49 million), an increase of 56% from last year.

Focusing on segmenting products from counterparts, She Hong targets annual sales at between NT$4 billion (US$117.99 million) and NT$4.5 billion (US$132.74 million) next year, up over 30% from this year. It targets to increase output of CNC machining centers by 500 units next year from this year's level to reach 1,800 units.

Yeh estimated his company would reach the production level of Japan's Okuma and Mazak in terms of CNC machining centers next year as these Japanese large-sized manufacturers each produces less than 2,000 units of CNC machining centers, in addition to lathes and some other industrial machinery, yearly.

Compared to large-sized machine-tool makers of Japan and Europe that produces approximately 40 models of CNC machining centers, She Hong is capable of producing 70-strong models in this field with x-axis travel ranging from 500 millimeters up to 12 meters. Commonly domestic manufacturers of machining centers each can only produce 10-some models of CNC machining centers.

In pursuing higher accuracy of its products, She Hong said it would build up a dust-free environment at its new production facility. Such key components as spindle heads and bearings will be produced in-house so that the accuracy and performance of its products will be able to compare with those produced by the world-class counterparts.