Taiwan's machine tool makers enjoy influx of orders from emerging markets

Taipei, April 19, 2005 (CENS)--Following China's implementation of the macro-economic control policy a year ago, Taiwan's makers of machine tools have somewhat switched sales attention to other emerging nations, including India, Russia and Brazil.

Some domestic large-sized manufacturers, including Taiwan Takisawa Technology Co., She Hong Industrial Co., Victor Taichung Machinery Works Co., and Kao Fong Machinery Co., claimed they have been enjoying increased orders from India, Russia and Brazil since the end of the 2005 Taipei International Machine Tool Show (TIMTOS) on March 20. They believed India would become a new engine behind the growth of the domestic machine-tool industry because sales to this emerging market will enjoy a double-digit growth this year.

Tai Shih-feng, vice president of Taiwan Takisawa, said his company received numerous buyers from India, Brazil and Russia and three leading Indian firms--TVS, Babaj, and India Piston--even requested to buy a large quantity of machine tools. But restricted by limited production capacity, Taiwan Takisawa promised to supply the three Indian firms 30 machine tools this year.

Taiwan Takisawa said it has sold more than 1,000 machine tools to India over the past decade and has become the No.1 brand in that market.

In addition to India, the company has also made good performance in the markets of Russia and Brazil. The company said it obtained orders for five machine tools from Russia at the TIMTOS.

The company said it would begin selling products to Brazil sometime in the third quarter of this year when distribution channel is established. The company aims to sell 30 machine tools to Brazil this year.

She Hong targets to sell 70 machine tools to India this year, up 20% from last year. The company enjoyed a growing number of visiting buyers from India, Russia and Brazil, but mainland China, at the TIMTOS 2005, if compared to the same event held two years ago.

Chan Chih-cheng, president of Kao Fong, said India needs a large quantity of small-sized machining centers to process automotive parts and molds because many foreign investors have set up automobile factories there. Chan noted his company would add the production of higher-end medium- and large-sized machining centers in the foreseeable future in line with the development of the global machine-tool industry.

Although Kao Fong entered the Indian market last year for the first time, it anticipated sales to that market to double to over 20 machine tools this year.