Taiwan's Machine Tool Makers Have a Banner February

Taiwan's leading machine-tool makers scored February revenue growth  ranging from 10% to over 100% year on year mostly thanks to market recovery worldwide.

The manufacturers include Tongtai Machine & Tool Co., Ltd., Victor Taichung Machinery Works Co., Ltd., Hiwin Technologies Corp., Goodway Machine Corp., Awea Mechantronic Co., Ltd., Roundtop Machinery Industries Co., Ltd., Shieh Yih Machinery Industry Co., Ltd. , Falcon Machine Tool Co., Ltd., and Taiwan Takisawa Technology Co., Ltd.

Falcon executives say that the company's Suzhou plant in China has seen orders booked throughout the first half of this year due chiefly to brisk demand for CNC boring centers from electronics manufacturers, with these orders to maintain the company's monthly revenue at the RMB10-12 million (US$1.6-1.9 million) range during the first half.

To keep up with demand, the Suzhou factory has asked its Taiwan parent company for more personnel. So far, the company still has around NT$400 million (US$13.3 million) of booked orders to keep it busy until May or June this year.

Nevertheless, the company's executives point out that the orders booked by its Taiwan factory have not eclipsed historical peaks.

Awea and its parent company, Goodway Machine Corp., saw consolidated revenues for February grow 40% to 100% year on year, with Awea's topping expectations with over NT$300 million (US$10 million). Awea executives ascribe the hefty growth mostly to added orders from car- and motorbike-making industry in China and Southeast Asia. The company still has NT$1.25 billion (US$41.6 million) of unfilled orders.

While pointing out that the company's orders for February exceeded expectations, Goodway executives say orders for March are topping expectations. They say the company has received increased orders from China's manufacturers of car parts and motorbike parts since late last year. The company still has approximately NT$800 million (US$26.6 million) of undelivered orders, which will keep the company's production lines busy until this July, with extra shifts needed.

Tongtai executives point out that the company has landed increased orders since February from China's car-making industry and printed-circuit board (PCB) industry, with unfilled orders reaching some NT$2 billion (US$68.3 million) to keep the company's production lines busy until around July.

Shieh Yih's revenue for both February and the Jan.-Feb. period grew at least 10% year on year mostly thanks to increased shipments of its heavy-duty and light-duty lathes to Thailand. The company still has some NT$1.4 billion (US$46.6 million) worth of unfilled orders, which will keep its production lines humming until the second quarter, with some orders for heavy-duty lathes yet to be filled until the last quarter of this year.

Kao Fong's consolidated revenue for February shot up approximately 90% year on year, to NT$196 million (US$65.3 million), mostly due to unfilled orders from January, with orders booked for April and orders for May being taken. The company still has NT$400 million (US$13.3 million) or so of unfilled orders, which exclude several big orders the company is still negotiating with  Chinese customers and Taiwan's customers.

Hiwin executives point out that the company's consolidated revenue for February rose 25.53% year on year, to NT$877 million (US$29.2 million), and its consolidated revenue for the Jan-Feb. period increased 24.72% YoY, to NT$1.9 billion (US$64.3 million). (KL)