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Machine Tools Around the Globe: Taiwan Sees Sales Decline
October 2008 |

Taiwanese machine tool manufacturers experienced a slowdown in orders in the third quarter of 2008 and the sector is expecting sales to continue to decline in the fourth quarter according to an online news item from the Taiwan Economic News.

Key Taiwanese machine tool builders such as Tongtai Machine & Tool Co., Falcon (Chevalier) Machine Tools Co., Victor Taichung Machinery Works Co. and Roundtop Machinery Industries Co., all saw sales drop in September.

"The U.S. subprime mortgage crisis and the ensuing global financial meltdown have not only impacted the North American market but also put the brakes on the EU`s economic growth," says Bert M.H. Huang, president of Victor Taichung.

The global economic slowdown has sapped Taiwan's machine tool industry after suppliers experiencing more than five years of steady prosperity. The news report notes that many machine tool manufacturers received 30 per cent less orders in the third quarter of this year. The impact of such drop is expected to emerge in the fourth quarter.

One supplier that seems to be beating the trend is Goodway Machine Corp., which posted NT $218 million (US $6.74 million/ CDN $7.5 million) in sales, up 20.77 per cent year-on-year, with cumulative sales reaching NT$1.963 billion (US$60.77 million/CND $71.61 million) in the first nine months, up 13.1 per cent from a year earlier.

Awea Mechantronic Co., Falcon (Chevalier), Roundtop, and Victor Taichung all achieved growth in cumulative sales for the first nine months in 2008.

To cope with declining September sales, some machine tool builders have begun layoffs and have reduced workdays.

Source: Ben Shen, Taiwan Economic News http:news.cens.com

Canadian Metalworking Note:
In Canada, several Taiwanese machine tool builders are sold through distribution channels. Some, but not all of the Canadian distributors include Heinman Machinery Ltd., Mississauga, ON. It sells several Taiwanese lines in parts of Canada including Chevalier/Falcon Machine Tools Co. Ltd. (Ontario East and Manitoba for machine tools and across Canada for grinders. In Western Canada, Chevalier machine tools are sold through Akhurst Machinery Ltd., Delta, BC; Modern Tool Ltd., Calgary, AB; and Bell Machinery Ltd., Vancouver, BC), Hsui Fong Machinery Co. Ltd., Kao Ming Machinery Industrial, Long Chang Machinery Co. Ltd., Dah Lih Machinery Industry Co. Ltd., Wey Yii (Microweily lathes) and others. Ferro Technique, Mississauga, ON, represents Agma, AG Machine Techno Co. Ltd. and Sister Machine Technology Co. Ltd.  Stan Canada sells Leadwell machine tools, Yu Shine, Proking Machinery Co. Ltd., and Jesco Machinery (Jessey machine tools). SparQuetec, St. Laurent, QC, represents Kao Fong Machinery Co. Ltd. in Ontario and Quebec, as well as Maxmill machine tools. SMS Machine Tools Ltd., sells Victor Taichang machine tools in Ontario and Quebec and Mighty Machine Tools.

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