Leading machine-tool makers in Taiwan are vigorously purchasing crucial components and materials for machines or raising materials and parts inventory to the level of at least two months lest incoming rush orders should be lost.
Taiwan's industry executives say that the recovering global economy is driving machine-tool demand worldwide which Japanese manufacturers alone can hardly meet, with ample orders also diverted to Taiwan.
Taiwan's leading manufacturers, including Tongtai Machine & Tool Co., Ltd., Victor Taichung Machinery Works Co., Ltd., Awea Mechantronic Co., Ltd., Goodway Machine Corp., Kao Fong Machinery Co., and Yeong Chin Machinery Industries Co., Ltd. are landing increased orders.
Citing data from the Japan Machine Tool Builders' Association, Tongtai executives say that new orders Japan's machine-tool industry landed in March and April posted all-time highest and second highest, respectively, in its history. The Japanese manufacturers ship 60-70% of their machines overseas. Usually, when Japan's machine-tool industry lands 130-140 billion yen (US$1.28-1.38 billion) worth of orders a month, the global economy is recovering, they say.
Tongtai executives ascribe the record number of orders to Japan partly to the steep devaluation of the yen against the US dollar in recent months, hence enhancing competitiveness of Japanese exports.
They expect Taiwan's machine-tool industry to begin turning the corner in the second half of this year and to be better this year than last year. They say the company's order book has filled throughout the second quarter and steady orders are being landed for its third-quarter production capacity. So far, the company still has NT$2.1 billion (US$70 million) of unfilled orders with order visibility of two to three months.
Victor Taichung executives say the company's orders have recently surged 30-40%, helping swell the company's undelivered orders to around NT$1 billion (US$33.3 million), with order visibility of three to four months.
They say that most of the new orders swarming the company in recent months are for rush deliveries, with some accepting stock machines and some with customization.
Fearing that inadequate inventory of spare parts and materials would dissuade buyers from placing rush orders, Taiwan's machine-tool makers are vigorously stocking up spare materials and parts.
Goodway executives say that the company is increasing its purchases of ball screws, liner guideways, bearings and crucial materials by 20% to prepare for surging orders over the next two to three months.
Goodway's subsidiary, Awea, has tasked its purchasers to aggressively visit materials and parts suppliers to stay ahead of competitors. Awea executives say the company will have to delay deliveries by a few days to a few weeks if components and materials suppliers fail to deliver orders on schedule.
Taiwan Takisawa executives say that the company is maintaining at least two months of inventory of ball screws, linear guideways and bearings.
Kao Fong executives say the company received steady orders in April and May and is working on potential orders likely to arrive in July. So far, the company still has NT$400 million (US$13.3 million) of unfilled orders. To ensure on-schedule deliveries, the company has increased expenditure to NT$600 million (US$20 million) on materials and components available for four months of production.
The vigorous materials and parts purchases have largely benefited Hiwin Technologies Co., Ltd., Taiwan's major manufacturer of ball screws, linear guideway and other precision components for machine tools. The company's executives say the company's orders for off-the-shelf ball screws and linear guideays has been booked throughout the second quarter while those for customized products has been booked for at least one month. (KL)
Jan.-Apr. 2014 Revenue at Taiwan's Leading Machine Tool Makers
| Stock code
|| Apr. consolidated revenue
|| YoY change (%)
|| Jan.-Apr. consolidated revenue
|| YoY change (%)
|| Kao Fong
|| Shieh Yih
|| Taiwan Takisawa
The world's leading memory chip and smartphone maker Samsung Electronics is looking for potential display technology partnerships in Taiwan, specifically for mini/micro-LED industry applications. Local media Economic Daily News reported Samsung was partaking in a private project with LED driver IC supplier Macroblock Inc., a move signaling the Korean group's further ambition in the mini/micro-...
Since July, global trade volume continues to rebound, signaling economies' restarting in a bid to make up the worldwide lockdown this spring due to the pandemic. In a report released by the CPB Netherlands Bureau for Economic Policy Analysis, the CPB World Trade Monitor in July grew 4.8% compared to June, the largest increase since the bureau began compiling statistics in 2000. This is slightl...
The COVID-19 pandemic has accelerated the digitalization of membership economies, which has become an essential factor in a company's survival, reported in a unified statement released by finance ministers of representing APEC member countries. Convened under the chairmanship of Malaysian Minister of Finance Tengku Zafrul Tengku Abdul Aziz, APEC finance ministers assembled over a virtual confe...
Global PCB NTI-100 2019 Fabricators report from the research agency heavyweight N.T.Information showed companies with over USD$1 billion revenue have increased compared to 2018. The report, annually compiled by Dr. Hayao Nakahar, showed in 2019, 122 fabricators were listed reporting revenue over USD$1 billion, an increase of four companies compared to the 2018 list. The report also found more ...
With most of society worldwide becoming more and more accustomed to wearing masks in the post-pandemic era, it has become a must-have accessory, attracting domestic textile firms into production. Traditional textile firms, such as Eclat Textile, Makalot, Far Eastern New Century, Everest, Roo Hsing, and QVE, have begun making masks, reports say. The COVID-19 pandemic has led to fewer consumers ...
The world's leading auto parts and battery housing maker Minth Group's Chairman Jong-Hwa Ching revealed on Sunday that it would launch M&A investment plans into Taiwan next year, focusing on auto parts, vehicle batteries, and the semiconductor industries. Ching named investing in Taiwan as an advantage highlighted amid the trade tensions between the U.S. and China, and expressed optimism in de...
■ Huang Chih-ming Located in Kaohsiung, Taiwan, Sheh Fung Screws Co., Ltd focuses on manufacturing three categories of screws: self-drilling screws, painted screws, and wood screws, often found in wood construction, sheet metal roofs, wood footpath, and DIY home decor applications. Currently, the U.S. is the firm's primary market, making up 64% of sales, 7% for Europe, 6% for Asia, and 12% for...
■ Huang Chih-ming Taiwanese quality fastener manufacturer Shuenn Chang Fa Enterprise Co., Ltd.'s (SCF) presented exceptional ability to adapt to challenging times amid the COVID-19 pandemic. Unlike other firms, SCF leveraged its production strategy with its new plant, and even saw sales performing better than expected. SCF’s newest factory expands the original 10,000-square meters factory g...
■ Huang Chih-ming Ray Fu Enterprise Co., Ltd. is a Taiwanese professional exporter for various fasteners and steel wires. Along with its parent company Chen Nan Iron Wire, both firms are located in Kaohsiung City of southern Taiwan. Ray Fu manages a wire rod storage, spheroidizing annealing furnace, pickling surface equipment, wiring drawing machinery, and fastener forming machine. While the C...
■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...
Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...
Taiwan First brakes Technology Co., Ltd.Sep 04, 2019
Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...
Driven by market prospects, domestic and international exhibitors actively prepare International Fastener Show China in Shanghai on November 3-5, 2020. Suffering from global epidemic and quarantine nearly half year, exhibitions are hot and popular in mainland China. Thousands of visitors join and visit the exhibitions with inquiries, and are eager to know new technology. Domestic and inter...
2020 Medical Taiwan is slated to kick off on Oct. 15 to Oct 17 at Nangang Exhibition Hall 2. Aside from events at the show, show organizer Taiwan External Trade Development Council (TAITRA) is also hosting the “Medical Taiwan Virtual” online edition at the same time due to travel restrictions impacted by the COVID-19 pandemic. The virtual edition will present 200 exhibitors and over 700 medic...
Ms Fiona Chiew, Deputy General Manager, Messe Frankfurt (HK) Ltd, reflected that: “As the industry starts to spring back from the effects of COVID-19, we believe that highly influential platforms like Automechanika Shanghai play a crucial role rejuvenating the market. It is our mission to help players unlock their potential. Therefore, we are continuing to realign our resources by utilising new d...