Taiwan's Aerospace Output Value to Hit Record High of NT$80B. in 2012: IDB

Taipei, July 16, 2012 (CENS)--The annual production value of Taiwan's aerospace industry is expected to hit a new record of NT$80 billion (US$2.7 billion) this year, as some local makers expect long-term orders for structural components and aerospace engine parts from international customers, according to the Industrial Development Bureau (IDB) of the Ministry of Economic Affairs, adding that the local aerospace industry is not impacted by the debt woes in Europe, instead winning more outsourcing work from aerospace operators who want to cut cost without compromising quality.

In the first six months, the IDB said, local aerospace investments totaled NT$3.3 billion (US$109 million), up 21% YoY, with the whole-year value expected to hit some NT$7 billion (US$233.3 million).

Many nations have been focusing on their aerospace industry in recent years, IDB said, with such sectors in Asia, Malaysia and South Korea gaining strong governmental support.

Industry sources said that South Korea governmental subsidies for its aerospace industry are very attractive to upstream international aerospace customers, despite questionable delivery and quality control of Korean makers.

Some Taiwanese aerospace suppliers have shown international competitiveness, IDB said, including Aerospace Industrial Development Corp. (AIDC), Magnate Technology Co., Ltd., Aero Win Technology Corp., Chenfull International Co., Ltd. etc., who have tapped into the supply chain of the world's fourth-largest aerospace-engine maker Safran.

IDB said some local aerospace-parts makers recently won three-year orders from big international customers, with China Airlines and EVA Airways providing increasing aircraft repair and maintenance services to international customers, and big Japanese conglomerates seeking qualified sub-contractors in Taiwan, all of which showing steady growth of the local aerospace industry, IDB said.