New Players Joining the Fray To Tap Market Potential

Taiwan's machining-center manufacturers are using their long-term experience to develop quality price-competitive models, some of which can rival those produced in industrialized countries such as Japan, Germany, and the United States.

Machining centers are among the most sophisticated metalworking machines produced in Taiwan, and over the past year more local suppliers have upgraded their manufacturing skills and switched into this category from other types of machinery such as computerized numerically controlled (CNC) milling machines and lathes.

The center of the machining center (and machinery in general) industry in Taiwan is in the central part of the island, because that is where suppliers of sheet metal, key components, and surface treatment services are concentrated.

Manufacturers in the machining-center line prefer to use high-performance CNC controllers bearing well-known brands such as Fanuc, Mitsubishi, and Siemens. Only a few use personal computer-based CNC controllers because, veteran manufacturers explain, the PC-based models are not mature enough for sophisticated machining centers. Low-priced PC-based controllers are used, however, in plastic injection molding machines, woodworking machines, and some types of textile machines which require a relatively low level of machining accuracy.

A number of veteran mechanical technicians and designers with shared ideals have joined to set up new machining-center plants during the past two years. One of the newcomers says that at least five or six new machining-center makers have entered the industry in the past year alone.


Whopping Export Growth

According to statistics compiled by the Taiwan Machine Tool Foundation (TMTF), Taiwan's exports of machining centers amounted to US$550 million in the first 11 months of 2004, a whopping 43% improvement over the corresponding period of the previous year.

The statistics show that mainland China (including Hong Kong) was the biggest market for the island's machining center, taking US$186.4 million worth during the 11-month period, an increase of 30.8%. In second place was the U.S. with US$57.45 million, up 82%, and Turkey was in third with US$43.56 million, a growth of 48.8%.

Wang Cheng-ching, TMTF's chief executive, thinks that machining-center exports will continue growing in the first half of 2005, although at a slower rate. The reason for the growth slowdown is the economic controls that have been imposed in mainland China to cool down the overheated economy there.


Constant Quality Improvement

One of the domestic leaders in the line is Maxmill Machinery Co., Ltd. Established in Taiping, Taichung County, central Taiwan seven years ago. The company specializes in vertical machining centers, and is particularly skilled at developing and producing double-column models of various sizes.

Maxmill's current bestsellers are CNC vertical machining centers, high-speed machining centers, and small- and large-sized double-column machining centers. Half of its output is exported, mainly to mainland China, the U.S., Europe, Turkey, Brazil, and Southeast Asia.

Ever since its establishment the company has worked constantly to improve the quality of its products and to offer rapid after-sales services to customers all over the world. In its biggest market, mainland China, it has set up a supporting factory in Zhejiang Province.

Maxmill vice president Liu Kuan-chung says that the firm's exports to industrialized countries are mainly on an OEM or ODM (original equipment/design manufacturer) basis.

"Thanks to our long-term efforts to improve product quality, " he states, "we've won a good reputation at home and abroad. In the future we'll speed up our development of creative and sophisticated machines that meet the needs of the ever-changing machine-tool market around the world."

The company recently introduced a new price-competitive model, the VMC-1380A CNC vertical machining center, which features an X-axis travel of 1, 350mm and a Japanese "Hamada" gear in its two-section spindle to assure fast, steady movement. This new machine is suited for use in the mold, automobile, 3C (computers, consumer electronics, and communications), and mechanical components industries.

Maxmill has won a number of international certifications over the past four years, including ISO-9001, EMC, and CE. In 2001 it was presented a "National Product of Excellence" award from the Ministry of Economic Affairs.


Better Accuracy and Durability

Goushin Machinery Tools Co., Ltd. Established in 1996, is another leading domestic maker of vertical machining centers as well as automatic tool changers (ATCs). Over the past several years it has been striving to expand its product range to meet the varied demand from customers throughout the world.

The company's well-established R&D department is charged with developing innovative products of its own design. In addition to the technology developed in-house, Goushin also acquires advanced manufacturing technologies from a long-term cooperative partner.

Today, the firm's product line encompasses vertical machining centers, gear-type spindle heads, and ATCs. It is especially proud of its BT50 spindle head, which has a machining speed of 10, 000 rpm, and the BT40, which boasts a speed of 12, 000-15, 000 rpm.

"We focus on gear-type spindle heads because they provide high machining accuracy, " explains the company's president, Chen Yi-chen. "In addition, this type of spindle head is more durable than the conventional pulley-type ones. Our gear-type spindle heads are suitable for use in machining centers and milling machines."

Most of Goushin's products go to mainland China, Southeast Asia, the U.S., and certain European countries. The machines are offered mainly on an OEM basis, with some being manufactured on an original design/brand manufacturer (ODM/OBM) basis as well.

"We did a booming business in mainland China in the first half of last year, " Chen reports, "but sales there have been shrinking since the middle of the year because of the imposition of strict economic controls in the mainland last April. I think this will continue to have an impact on our sales in that market during the first half of this year."

The company's work force of 10 can turn out 15 vertical-machining centers per month, and if more are needed supporting factories can be called on to help.

A recently purchased plant close to Goushin's headquarters will produce new lines of products, including double-column machining centers as well as horizontal models. The double-column machining centers are undergoing final testing and should be introduced within the next few months, but the horizontal models will take more time.

To enhance its corporate image and win more orders from overseas, the firm will take part in two machine tool shows in 2005, one in Taipei in March and the other in Shanghai in April.


Expecting Outstanding Performance

One of Taiwan's leading makers of high-added-value machines is Tong-tai Machine & Tool Co., Ltd. Which concentrates on the development and manufacturing of production equipment for auto parts, molds, and printed-circuit boards (PCBs).

The company's main products at the present time include high-speed vertical machining centers, vertical-column machining centers, high-speed PCB drilling machines, high-speed drilling and tapping machines for aluminum alloy 3C (computers, communications, and consumer electronics) products, high-precision horizontal CNC machining centers, and precision CNC lathes.

Tong-Tai expects an outstanding performance this year, thanks to booming sales of whole-line equipment for auto-parts and mold-making plants.

The firm has concentrated on elevating the performance of its products for a number of years. Partly as a result, reports deputy manager Y.H. Hsieh, sales of mold-making machines and vertical machining centers are growing rapidly. There was also an unexpected surge in sales of special-purpose machines, horizontal machining centers, and production equipment for magnesium-alloy parts in the fourth quarter of last year.

Company officials claim that their PCB drilling machines can compete with top-grade counterparts from Japan and Germany in terms of operating accuracy and performance.

Tong-Tai can currently turn out 25 to 30 PCB drilling machines per month, along with other products. Sales of these machines may challenge 350 units for the whole year, growing largely because the company has worked hard to improve accuracy and function. Already the world's third-largest suppliers of high-end PCB drilling machines, the company is striving to boost its ranking even higher.

Tong-Tai President Yen Jui-hsiung reports that his company has recently set up an R&D center in Japan with the aim of elevating its R&D capability. Japan is widely viewed as the world's R&D center for precision machinery.

The president reports the receipt of US$100 million worth of orders for machine tools that an American buyer, a manufacturer, will use to set up four new production lines.

Tong-Tai exports about 55% of its output, mainly to customers in Japan, the U.S., and Germany. The company is working aggressively to boost overseas sales this year.