【Reported by Chen Ren Yi, Commercial Times】
The economic slump has not been perceived optimistically, even so, mainland China’s domestic market is still vigorously growing strong and seems not to be influenced by the international economy at all. The market demand still blossoms and continues to drive the industry to flourish. Also the demand of automation production equipment continues to rise. Furthermore, the mainland is a crucial exporting market for the machine tool industry in Taiwan. Therefore, actively managing distribution to mainland China is an important management plan for machine tool related industries.
The cross-strait leading company Forwell Machinery has already invested NT$ 350 million in constructing a new 42,000m2 factory in Huai’an, which currently has passed production trials and has began the development of new products. Nevertheless, the Forwell Group has responded vigorously to the flourishing market of mainland China by effectively managing distribution. This move created a high efficiency and an international competitive advantage within the industry. Although the new factory is still in the first stages of production and the recruiting phase, Forwell has planned to recruit people for all departments and import production facilities. After this the production output shall increase to more than five times the current production, allowing them to easily respond to future mainland market demands.
Chairman Xiao Wen Long of Forwell states, the immense demand of the domestic market is still very active as industries continue to rise, and the procurement demand of automated machinery production systems has skyrocketed. For instance, the automotive market in mainland China has more than 20 million vehicles in demand, not only making people in the industry extremely happy, but also bringing growth to related industries, including many Taiwanese entrepreneurs which account for a considerable percentage. Furthermore, the Taiwan Association of Machinery Industry states the machine tool industry will strive to make a breakthrough in export growth this year, and allow the Taiwan machine tool industry to become a NT$1 trillion industry. However, to become a NT$1 trillion industry, growth of the mainland market will be a crucial factor.
He also admits that in the past, the demand of machine tool equipment in the mainland market mostly relied on Taiwan, Korea, and Japan, etc. On the other hand, currently mainland China machine tool industries have vigorously advanced in development and design of machine tools, and has became a competitor in the international market and for the Taiwan machine tool industry. Strikingly, the Taiwan machine tool industry is now facing a crisis, the threat of being replaced by Germany and Japan who have a very high quality standard, and Korea who has currency advantages, and also last but not least China whose technologies are rapidly catching up. The only hope is for Taiwanese companies to aim for a much more advanced development goal, in order to provide a more complete and professional service to form a new competitive advantage. Gradually expanding their technological development is the only solution to ensure the international market and the position of the professional market in mainland China.
Xaio Wen Long indicates, Forwell has already aimed towards the development of quick mold/die change systems which incorporate “Automation Intelligence”. As the company spent years trading cross-strait to be the first to come up with a “Mold management system”, Forwell applied “Mold Transporting”, “Mold Warehouse and Maintenance” and future development of factory equipment through their “Automation Intelligence”, to integrate all of the above into an automated intelligent management operating system.