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Hiwin of Taiwan Starts German Factory Construction Plan

2014/10/07 | By Ken Liu

Hiwin Technologies Corp., a major maker in Taiwan of precision components for machinery, has set in motion the plan to construct a factory in Offenburg, Germany for €17 million (US$20.4 million).

The factory will make high-performance ball screws and linear guide ways once started up in 2015, and is expected to help boost Hiwin's market share in Germany and the European Union.

Hiwin's German subsidiary is in charge of the construction on about 26,400 square meters of land right across the German subsidiary, which, meanwhile, will invest €2 million (US$2.5 million) to open an Italian subsidiary to supply components to European aircraft builders and carmakers.

Industry executives say the investments in Germany and Italy will help Hiwin build closer access to local customers and reduce operational cost and risk in Europe. Hiwin depends on the European market for about 25-30% of revenue.

Hiwin also plans to boost production at its Suzhou factory in China, its factory on the second-phase campus of the Taichung City Precision Mechanical Innovation Technology Park and the Chiayi Dapumei Precision Machinery Park in Taiwan. The investments in Taiwan total NT$10 billion (US$333.3 million) or so.

The maker's main manufacturing takes place in Taiwan although it has subsidiaries in the United States, Germany, China, and Japan. The company is a major supplier of transmission components for precision machines.

Industry executives say the company reported encouraging revenues in August mostly due to increased shipments of ball screws, linear guideways, and industrial robots. Hiwin Chairman and Chief Executive Officer (CEO) Eric Chuo estimates the company's sales in H2 of this year to grow quarterly. (KL)