IMA June-July 2014 Feature-Machinery

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Injection Moulding Asia Machinery

Taiwanese machine makers step up efforts in China FCS counts China as one of its top export markets, selling 30% of its output to the country, said Export Manager Scott Lin. “Since we entered the Chinese market quite early, our machinery is quite popular,” he added, explaining further that FCS is one of the largest exporters of plastics machinery in Taiwan. It produces 1,200 machines/year in Tainan, Taiwan, and has a combined total of 2,160 machines/year output from its Chinese plants. Against the backdrop of higher costs in China, Lin said FCS was considering expanding its operations to Brazil. “We are evaluating a location and will first assemble machines before deciding on full production,” he added. Another machinery maker lamenting the higher costs in China is injection machine maker Multiplas that has a factory in Kunshan (with a capacity of 100 units/month). “Labour costs are increasing in China. This is one of the reasons why we are expanding our Taiwanese factory in Taoyuan where labour rates are more competitive,” according to General Manager David Wu. It has acquired a 30,000 sq m site, with the first stage of the 3,000 sq m factory to be commissioned by May 2015, said Wu. “We will build the factory step-by-step. The first stage will consist of a machine shop and pre-assembling. We will do the final assembly at our main facility David Wu of (also in Taoyuan),” he added. Multiplas said the Wu was coy about the targeted firm is expanding its capacity. “We are conservative operations in Taiwan about the output,” he said. But not all machine makers are bailing out of China, especially those that have considerable business potential in the country. One such example is Victor Taichung. Having sold 5,600 machines over a 20-year period to its largest customer in its stable, Taiwanese multinational electronics contract manufacturing company Foxconn, it has its roots firmly planted in China, said Martin Li, Manager, Overseas Marketing Division. Foxconn operates a number of facilities in China as does Delta Electronics to whom Victor Taichung has sold 1,000 machines prompting Li to comment that there is “good potential in the future.” Victor Taichung operates three factories each in Guangzhou (injection machinery), Tianjin (component parts) and Shanghai (machine tooling centres). “All the output produced in Guangzhou is for the domestic market,” said Li.

Notwithstanding the fact that Taiwanese machinery companies have had a head start in the Chinese market (with some over 20 years), compared to European, US and Japanese compatriots, China’s rising costs of production are affecting their operations. Meanwhile, highlights from Chinaplas 2014 in April are multi-material and IML (in-mould label) moulding machines; rubber moulding and footwear injection machinery.

Cost factor for FCS, Multiplas; Victor Taichung takes it in its stride ne of the first companies to enter the Chinese market, injection moulding machine maker Fu Chun Shin Machinery Manufacture (FCS) set up its first facility in Dongguan in 1994 followed by Ningbo in 2004. FCS Dongguan makes machinery with clamping forces from 60-1,000 tonnes, while FCS Ningbo produces large-sized machines of up to 3,500 tonnes.

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Victor Taichung’s booth at Chinaplas

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