Taiwan's machinery output value estimated to top NT$680 B. in 2005

Taipei, Jan. 27, 2005 (CENS)--The production and exports of Taiwan's machinery industry is estimated at NT$680 billion (US$21.38 billion at US$1:NT$31.8) and NT$470 billion (US$14.77 billion) this year, respectively, up 15% and 14% from 2004, according to the Taiwan Association of Machinery Industry (TAMI).

Although mainland China is implementing credit-control policy to dampen overheated investment activities, such emerging markets as the Middle East, India, and Southeast Asian nations are showing increasing demand for Taiwan-made machinery products. In addition, the global demand for plastic processing, textile, and woodworking machines is still growing, which will also be conducive to Taiwan's machinery exports, a top TAMI official said.

Wang Cheng-ching, vice president of TAMI, noted domestic machinery manufacturers and exporters enjoyed an unprecedented booming year in 2004. According to TAMI's estimate, overall production and export value of Taiwan-made machinery would amount to NT$590 billion (US$18.55 billion) and NT$416 billion (US$13.08 billion) in 2004, each up 18% from 2003.

TAMI said the North American machine tool market began resuscitating in the fourth quarter of last year, as the U.S. government has offered a tax incentive to encourage private sectors to procure such capital goods as machine tools. TAMI noted the recovery of the U.S. machine-tool market has benefited exports of Taiwan-made machine tools.

TAMI's Wang said the medium-priced domestically made machine tools have gradually won brand recognition in India, Turkey and Southeast Asia over the past several years. TAMI projected Taiwan's machine-tool industry would have great chance to challenge NT$112 billion (US$3.52 billion) in overall production value this year, up 19% from last year.

Other sectors, including woodworking, plastic processing, and textile machinery, would also enjoy a substantial production growth this year. Of them, plastic processing and woodworking machines each will grow by 15% year-on-year, and textile machinery, approximately 8%.

Production and Exports of Taiwan Machinery Industry
	Estimated Production Value in 2004	Estimated Export Value in 2004	Projected Production Value in 2005	Projected Export Value in 2005
Machine Tools	NT$94 billion	NT$75 billion	NT$112 billion	NT$90 billion
Textile Machines	NT$40 billion	NT$36 billion	NT$43.2 billion	NT$38.9 billion
Plastic Processing Machines	NT$38 billion	NT$32.5 billion	NT$43.8 billion	NT$37.4 billion
Woodworking Machines	NT$25.4 billion	NT$24.8 billion	NT$29.2 billion	NT$28.5 billion
Source: Taiwan Association of Machinery Industry