Jiuh Yeh Precision Machinery Enters Second Stage of Expanson Project

Beginning this year, Jiuh Yeh Precision Machinery Co., Ltd. has entered into the second stage of its expansion plan, aiming to boost the company's consolidated revenue to NT$2 billion (US$66.6 million) by 2020 from 2013's NT$600 million (US$20 million) to make its brand known globally.

The company, opened in 1988 as a manufacturer of milling machines and machining centers, came up with a 10-year expansion plan in 2011, which will be completed in three stages.

The first stage was completed in 2013 by deploying the Enterprise Resource Planning (ERP) and broadly upgrading its technological level.

The second stage will address technological advancement and diversification of distribution channels. To attain the second-stage goal, the company has teamed up with Hong Long Sing Technology Co., Ltd. by acquiring a 51% stake in the latter, enabling it to migrate to the sector of light double-column high-speed cutting machines and five-axis machining centers thanks to Hong Long Sing's technologies.

In addition, Jiuh Yeh will inaugurate an expansion plan at the Erlin campus of the Central Taiwan Science Park by the end of 2014, building a new factory for NT$350 million (US$11.6 million) on 3.5 hectares, which will, after going online in early 2016, generate annual revenue estimated at NT$1-1.5 billion (US$33.3-50 million) by putting out high-end vertical and horizontal machining centers, and horizontal boring/milling machines.

The company projects revenue for 2014 at NT$800 million (US$26.6 million), up over 30% year on year, thanks to expansion and added new products.

Company chairman, C.F. Hsu, points out that the company has released at least 60 models of machine tools since 1991, when it began branching out from the milling-machine sector into the sector of horizontal and vertical machining centers. Now, the company, he says, is the only manufacturer of bed-type horizontal and vertical milling machines in Taiwan due to larger product line.

The company runs four manufacturing sites in Da Li Industrial Park in central Taiwan to build bed-type vertical milling machines, bed-type vertical turret milling machines, bed-type horizontal boring/milling machines, and vertical and horizontal machining centers.

While promoting own brands “MiLL STAR” and “JY” in 60-plus economies, including China, Southeast Asia, India, Turkey, Europe, Russia, North America, and Latin America, the company is vigorously boosting its contract manufacturing service to raise sales revenue. According to Hsu, the company plans to increase contract manufacturing sales to account for 10-15% of its total revenue in 2014, compared with 2013's 5%.

Jiuh Yeh reportedly signed a contract in 2013 to provide a Japanese machine-tool maker with tailor-made horizontal machine centers. The company plans similar deals with some big players in Germany, England, and Italy.

In line with its expansion plan, this year the company will apply with the Ministry of Economic Affairs to fund its corporate apprenticeship plan, which targets the National Chin-Yi University of Technology, Hsiuping University of Science and Technology, and the National Formosa University as its partners. (KL)