Taiwan Media: No More Rescue Machine Tool Enterprises, Next Year Is Afraid of Falling a Third

Taiwan's machine tool industry has had a hard time lately, with the outbreak hit hard. On August 14th Zhuo Yongcai, president of the Shanghai Banking Tool Machine Group, said: "If the government does not rescue the tool machine industry, the worst-case situation will be that one-third of the tool machine factories will face closure by June next year!" He suggested that the Taiwan government should allocate funds for the project as soon as possible to purchase basic and standard machine tools such as cedes, milling machines and integrated machine tools from manufacturers and provide them to Taiwan's tertiary institutions for use to help the industry tide over the difficulties.

It is understood that the value of Taiwan's machine tool exports in July decreased by nearly 40% a year, far more serious than the decline in machinery and equipment exports. In July, Taiwan's machinery and equipment exports were worth US$2,095 million, a decrease of 12.5% year-on-year, of which the value of machine tools exports in July was US$164 million, a decrease of 39.3% year-on-year, a new low for the same period in recent years. Exports of machinery and equipment in the first seven months of the year were worth US$14.478 billion, a decrease of 10% year-on-year and an annual decrease of 13%, of which the value of exports of machine tools in the first seven months was US$1,274 million, a decrease of 32.1% year-on-year.

Bank of China President Zhuo Yongcai said that in June and July, Japan's machine tool industry orders slowly rebounded, but the mainland market by the impact of the epidemic and decline, Taiwan 35% to 40% of machine tools sold to the mainland and Hong Kong, has not yet started to pick up, before the end of the machine tool industry business climate will not be good, only semiconductor and intelligent manufacturing and other industries good business climate, "do three break four" has been the normal machine tool industry in Taiwan.

Xu Wenxian, chairman of the Taiwan Tool Machine and Components Association, said that by the epidemic, exchange rate appreciation double-hit, machine tool factories and parts industry orders are generally a single digit, less bail-out 3.0 subsidies in July, the number of unpaid fake manufacturers increased, the value of machine tool exports is expected to decrease by 40 to 50 this year.

Taiwan media said that at present, Taiwan's export orders in the serious decline of traditional industrial products, more than 90% of the production in Taiwan, of which machine tool orders from the mainland to single effect brought about by the short-term emergency orders, will not last long; Machine tool parts generally stock hoarding, resulting in inventory price loss and capital backlog double damage, such as the re-start of the second outbreak, global consumption continued to tighten, foreign customers suspended the pull of goods, the recovery period is likely to be delayed for another two to four seasons, and may even trigger a manufacturer financial crisis.

A few months ago, Zhuo Yongcai suggested that, on the basis of emergency and poverty relief, the Government should allocate 10 billion yuan to purchase cedes, milling machines and integrated processing centers from Taiwan machine tool practitioners to create demand for the rescue of Taiwan's machine tool industry, as well as the replacement of old equipment and training of talents in tertiary institutions and technical and vocational schools.

Taiwan media believe that machine tool manufacturers need to use government subsidies, the elimination of old equipment, and get rid of the past only to do rthe low gross margin products, and actively transform the production of high value-added products, such as intelligent machine tools, industrial robots, unmanned vehicles and automatic warehousing, Internet of Things, artificial intelligence, etc.