ECFA promotes growth in Taiwan's machine tool orders

According to the Taiwan Machinery Association, the total output value of the machinery industry in Taiwan reached 900 billion yuan in 2010, a 30% increase over the 680 billion yuan in 2009. The machinery trade unions also optimistically estimated that with the formal implementation of ECFA, China will export mechanical products to China. Under the favorable promotion of a substantial reduction in tariffs on the mainland market, there will be 10% to 15% growth in the output value of the Taiwan machinery industry in 2011.

The Machinery Trade Union pointed out that although exports of mechanical products are subject to currency exchange risks, Taiwanese manufacturers have technological advantages. Taxes at business camps have dropped from 25% to 17%. ECFA's implementation has allowed the sale of machine tools to mainland China to reduce tariffs from 9.7% to 5%. With support, orders from machining centers such as Aachen, Chengtai, Dongtai and Gaofeng have been dispatched to the second quarter of 2011, and their production capacity is in short supply.

The Taiwan Machinery Trade Union pointed out that in view of the recovery of the economy, the machine tool industry in Taiwan showed a huge increase in 2010, and this trend is expected to continue in 2011. It is predicted that although the operating revenue of many machine tool makers will increase exponentially in 2010 and increase the base number, after the implementation of the ECFA early-income list, it will prompt the influx of manufacturing orders from mainland China, and the Taiwan machine tool industry will have an opportunity to grow again in 2011. 1 to 20% level.

In addition, although Cheng Tai, Aachen, Dongtai, Fuqiangxin, Gaofeng and other machine tool factories announced that due to rising raw material prices to increase corporate costs, will increase product prices after the Lunar New Year 5% to 7%, whether it affects the export price Competitiveness remains to be seen; however, with the reduction of corporate taxation from 25% to 17% this year, and the fact that the manufacturing recovery in the European and American markets has become more established, the overall development prospects of the machine tool industry are promising.