Taiwan's Machinery Exports Grew 8% in First Eight Months

Taipei, Nov. 1, 2005 (CENS)--Taiwan exported US$8.747 billion worth of machinery products in the first eight months of this year, representing an annual growth of 8% from the US$8.096 billion posted in the corresponding period of 2004, according to customs-cleared statistics compiled by the Taiwan Association of Machinery Industry (TAMI).

Of the total exports, machine tools ranked first with an export value reaching US$1.732 billion, up 23% year-on-year. Plastics and rubber processing machinery came second with US$628.13 million, up 2% annually. Pumps, compressors and fans took third place with US$589.38 million, down 2%. Special-purpose machinery ranked fourth with US$503.4 million, down 1%. Valves and parts ranked fifth with US$469.13 million, up 3%. The sixth place went to woodworking machinery with US$446.15 million, down 2%.

Other major export items, in descending order, were molds and dies (US$395.49 million, up 3%); textile machinery (US$365.87 million, up 0.1%); sewing machines (US$345.6 million, up 1%); bearings, gears and ball screws (US$330.55 million, up 18%); paper making and printing machines (US$164.96 million, up 23%); and leather and shoemaking machines (US$71.58 million, down 1%).

In terms of major export outlets for domestically made machines, mainland China and Hong Kong combined ranked first by absorbing US$2.982 billion worth of the products in the first eight months of this year, down 0.4% year-on-year and accounting for 34.1% of the total exports. The U.S. was the second largest outlet with US$1.532 billion, up 7% and commanding 17.5%. Third place went to Japan with US$504.85 million, up 18% and accounting for 5.8%.

Thailand ranked fourth with US$328.78 million, down 8% annually; followed by Vietnam with US$294.56 million, up 18%; Indonesia with US$237.2 million, up 46%; and Malaysia with US$217.39 million, down 1%. Other major outlets, in descending order, were Turkey, Germany, the U.K., Canada, South Korea, Italy, India, Singapore, Australia, Holland, Spain, the Philippines, France, the United Arab Emirates, Mexico, Finland, Saudi Arabia, and Russia.

TAMI's tallies also shows Taiwan imported US$12.933 billion worth of machinery in the first eight months of this year, up 16.2% from the corresponding period of last year. Of the total imports, special-purpose machines ranked first with an import value reaching US$4.538 billion, accounting for 35.1% of the total imports and up 27% annually. TAMI notes that the imported special-purpose machines were mainly employed in such high-tech sectors as the semiconductor and 3C (computer, consumer electronics, communications) industries.

Machine tools came next with US$1.075 billion, down 13% year-on-year and commanding 8.3% of the total. The third place went to the category of pumps, compressors and fans, with US$737.07 million, up 15% annually and accounting for 5.7%. Engines and parts ranked fourth with US$625.41 million, up 45% and accounting for 4.8%. Valves and parts took the fifth spot with US$357.44 million, up 13% and commanding 2.8%. Textile machinery followed with US$200.67 million, down 11% and accounting for 1.6%; plastics and rubber processing machinery with US$200.32 million, down 55% and commanding 1.5%.

TAMI vice president Wang Cheng-ching notes that the imported machines are mainly employed by high-tech sectors such as the optoelectronics, communications, information technology, and semiconductor industries.

As for the sources of the imports, Taiwan still relied on Japan and the U.S. most for the supply of advanced machinery in the first eight months. Japan was the largest source, selling US$7.178 billion worth of machinery to Taiwan in the first eight months, representing an annual increase of 22% and commanding 55.5% of the total imports. The U.S. ranked second with US$2.395 billion, up a mere 1% and accounting for 18.5%. The third place went to Germany with US$849.92 million, up 11% and commanding 6.6%.

Other major import sources, in descending order, were mainland China, South Korea, Switzerland, Italy, the U.K., and France.

Wang predicted Taiwan's machinery industry would see exports grow 8% up to 10%, and production value advance 8% annually this year. He said the most critical factors affecting the exports of Taiwan's machinery industry were the unsteady prices of raw materials, the upswing in bank interest rates, high crude oil prices, and the fluctuation of the New Taiwan dollar against the U.S. greenback.

Exports of Taiwan Machinery Industry, Jan.-Aug. 2005 Unit: US$1,000
Products	Jan.-Aug. 2004	Jan.-Aug. 2005	Annual Change (%)
Machine Tools	1,413,102	1,732,287	22.6
Plastics & Rubber Machinery	616,969	628,130	1.8
Pumps, Compressors, Fans	601,329	589,380	-2.0
Special-Purpose Machinery	509,513	503,409	-1.2
Valves & Parts	455,903	469,135	2.9
Woodworking Machinery	453,950	446,154	-1.7
Molds & Dies	383,717	395,498	3.1
Textile Machinery	365,537	365,873	0.1
Sewing Machines	341,616	345,606	1.2
Bearings, Gears, Ball Screws	280,886	330,555	17.7
Paper-Making, Printing Machinery	133,989	164,969	23.1
Leather & Shoemaking Machines	72,103	71,581	-0.7
Others	2,468,322	2,705,021	9.6
Total	8,096,936	8,747,598	8.0
Source: Taiwan Association of Machinery Industry