MOEA to set up R&D strategic alliances for local rolling stock industry

Taipei, June 3, 2004 (CENS)--The Industrial Development Bureau (IDB) of the Ministry of Economic Affairs (MOEA) is scheduled to group several R&D strategic alliances among makers in rolling stock (railway vehicle)-relevant industries in Taiwan.

IDB said that Taiwan's high speed railway system is scheduled for completion in October next year, and the mass rapid transit (MRT) systems in major cities such as Taipei and Kaohsiung are also being constructed. The bureau estimated that last year the island generated business opportunities of about NT$35 billion (US$1.04 billion at US$1:NT$33.5), with NT$25 billion (US$746.27 million) coming from repair and maintenance businesses.

IDB said that the rolling stock business in Taiwan is expected to generate a market value of NT$40 billion (US$1.19 billion) this year, with repair and maintenance accounting for about NT$30 billion (US$895.52 million) as the MRT system in Taipei will release more such business opportunities to local companies.

IDB said that it has mediated several local companies to set up a rolling stock suspension system R&D alliance, which has won subsidies from Industrial Technology Department (ITD) of MOEA. Members in the alliance include Chung Tai Rubber Co., San Wu Rubber Mfg. Co., Ltd., San Lien Technology Corp., Chardon Taiwan Corp., and Tung Yu Hydraulic Machinery.

The bureau also tied some local companies up in a rolling stock interior R&D alliance. Members in the group include makers of automobile seat and door trim products, air condition systems, in-car information systems, auto lamps, glass, bathroom hardware, and electrical machinery equipment etc.

In the coming two years, IDB said, it plans to help set up several R&D strategic alliances, including signal, railway, and electrical machinery systems, for the rolling stock industry.

IDB claimed that it will link different sub-system makers and developers together to research and produce parts and accessories required by the local rolling stock industry, hoping to build up a solid infrastructure for the line. The R&D alliances are expected to demonstrate their research results at a rolling stock exhibition in Berlin, German in 2006, the bureau added.

At this year's Berlin International Trade Fair For Transport Technology, Innovative Components, Vehicles, And Systems (InnoTrans) to be held on September 21-24, IDB will set up a Taiwan Pavilion to demonstrate relevant products developed by local makers. The show is expected to attract over 1,000 exhibitors from 30 countries to display their latest products.

At the InnoTrans, IDB said, the Taiwan Pavilion will exhibit the island's high-speed railway system, the world's largest build-operate-transfer (BOT) project, and the model of the second rolling stock vehicle jointly developed by over 60 companies in Taiwan.