Taiwan's Machine-tool Firms to See Growing Sales in Q3

Taipei, July 21, 2011 (CENS)--With backlog orders exceeding NT$10 billion, Taiwan's leading manufacturers of machine tools, including Tongtai Machine & Tool Co., Kao Fong Machinery Co., Falcon Machine Tools Co. and Roundtop Machinery Industries Co., will see continued growth in sales in the third quarter, despite slowing influx of orders due to the decelerating automobile market in China.

An industry insider said half the orders for domestic machine-tool manufacturers come from the automobile sector. The booming automobile market in China and continued procurements from semiconductor and information-technology makers helped domestic machine-tool firms achieve substantial growth in orders received in the first half.

China's automobile market has slowed since March but rebounded in June. The nation's two-million car inventory dampens placing orders for machine tools.

With undelivered orders of NT$700 million, Kao Fong saw cumulative sales hit a historic high in the first half and has orders to fill production throughout the end of October.

Tongtai saw shipment increase by NT$100 million in June, attributing the good performance to sales of 60 vertical machining center for flat panels and 30 horizontal machining centers to China, with NT$2.9 billion in undelivered orders.

Specializing in grinding machines, Falcon has backlog orders of NT$700 million and saw sales in the first half hit a three-year high.