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Taiwan`s Machine-tool Firms Post January Sales Growths

Strong foreign demand helped Taiwan`s leading manufacturers of machine tools, including Tongtai Machine & Tool Co., Kao Fong Machinery Co., Awea Mechantronic Co. and Goodway Machine Corp., to post substantial growth in January sales.

According to preliminary statistics compiled by the Taiwan Association of Machinery Industry (TAMI), Taiwan exported US$1.15 billion of machinery in January, for an annual growth of 25%.

Taiwan`s leading machine-tool manufacturers said they are working at full capacities because of the influx of export orders. Of them, Kao Fong estimated its shipments will amount to NT$480 million (US$15 million) in the first four months of this year, almost equaling the NT$500 million (US$15.62 million) recorded all last year.

The orders received by Kao Fong are dominated by vertical, horizontal and double-column machining centers. It is expected the company will see yearly sales reach between NT$1.1 billion (US$34.37 million) and NT$1.2 billion (US$37.5 million) this year, doubled that of last year.

Hiwin Technologies Corp., Taiwan`s leading manufacturer of linear-motion devices, noted it received over NT$700 million (US$21.87 million) in orders in each month of the first quarter.

Thanks to the recovery of the overall economy, Tongtai has seen increased shipments in PCB (printed circuit board) drilling machines. The company aims to ship 300 units of PCB drilling machines this year, up 40% from last year.

An institutional investor predicts Tongtai will register NT$300 million (US$9.37 million) in quarterly sales with a gross margin of 21% in the first quarter.

Taken from: CENS.Com (by Ben Shen) 3/4/2010