Trade Resources Industry Views Taiwan's Manufacturers of Machine Tools Have Experienced Substantial Sales Growth

Taiwan's Manufacturers of Machine Tools Have Experienced Substantial Sales Growth

Tags: CNC, Taiwan, TAMI
Taiwan's manufacturers of machine tools,most of which are small or medium in size,have experienced substantial sales growth following the global financial crisis of 2009.Their exports grew a further 9.4%in the first half of 2012,to US$2.09 billion,according to the Taiwan Association of Machinery Industry(TAMI).Local makers of milling machines have shared in this growth,thanks to stable demand in overseas markets.
 
Many manufacturers in the line have pursued profits by developing mass markets in the industrialized countries instead of cultivating the domestic market,and they have invested in R&D with the aim of working out innovative products,including computerized numerically controlled(CNC)models.They have also shown a willingness to accept custom orders,which are inevitably low-volume but offer relatively high profits.
 
A complete domestic supply chain helps milling machine makers control the quality of their products—but they also import high-end materials and parts from the advanced countries when necessary.Their high quality-to-price ratio makes Taiwan's milling machines popular in the global market.
Taiwanese Milling Machine Makers Grow Despite Global Economic Woes
Denver Ind.Focuses on Customized CNC Models
Yuan-tang Kao founded Denver Ind.Co.in Taichung City,central Taiwan,in 1972 and built it into one of the island's most experienced manufacturers of lathes,CNC lathes,and CNC milling machines.The company focuses on making customized machines for customers all over the world.
 
Over its four decades of effort,Denver has expanded from traditional heavy-duty machines to CNC models.In recent years,in response to the growing cost of raw materials,energy,and labor,the company has increasingly focused on large CNC machines.Its major products today are CNC facing lathes(DHK series),heavy-duty CNC lathes(HK series),multiple-guideway heavy-duty CNC lathes(flat bed),and CNC milling machines(MCV-1000).
 
Denver's sales manager,Karen Kao,noted that the company mainly uses components from Taiwan's comprehensive supply chain in order to ensure quality,but also imports bearings from the U.S.,Japan,and Germany to boost quality to an even higher level.
 
The sales manager reported that her vertical milling machines are equipped with Pou Yuan LNC-M600 CNC controllers,making them user-friendly and providing high stability.An AC servo-motor assures smooth movement and accurate positioning,and a 7.5kW high-power spindle motor guarantees good stability.
 
Among the firm's main products is the DHK facing lathe,which is equipped with a mid-mounted Z-axis ballscrew for efficient saddle movement and enhanced machining accuracy.Another popular product,the CNC heavy-duty lathe,comes with a spindle bore with a size of 6",9",or 12"and a center distance of 2000-8000mm.It is especially suitable for heavy-duty machining tasks.
 
Despite fierce competition from low-cost areas such as China,Denver's reputation for superior product quality has kept in firmly ensconced in markets all over the world:the U.S.,Asia,Europe,the Middle East,Scandinavia,and the BRIC countries(Brazil,Russia,India,China).The company guarantees flexible service and quick response,with a delivery time of 60-150 days.
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Karen Kao said that Denver's sales have constantly set new records,with revenues growing at a rate of 30%to 40%per year.
 
Frank Phoenix Debuts Bed-type CNC Milling Machine
Founded in 1990 in the central Taiwan city of Taichung,Frank Phoenix started business as a manufacturer of traditional machine tools such as mold-making lathes,grinders,machining centers,milling machines,and related accessories.The company currently offers three product lines:bed-type CNC milling machines with X-axis travel of 800-3000mm,CNC lathes with 450-1200 x 1000-6000mm swing-over beds,and vertical machining centers with X-axis travel of 500-1600mm.
 
In 1995 Frank Phoenix entered into cooperation with several other companies to produce sophisticated CNC milling machines and CNC lathes fitted with locally produced or imported IPC(industrial personal computer)CNC controls.In 1997 it launched a technical cooperation project with the government-backed Industrial Technology Research Institute(ITRI)to develop its own powerful IPC-based CNC controllers;the resulting products give customers a cost-effective choice,and have been well received around the world.
 
In 1999 the company acquired a subsidiary,Topfit Machinery Co.,which specializes in CNC milling machines,CNC lathes,and machining centers.That same year Frank Phoenix introduced the FM-205/255/300 CNC/MH/ATC series of upgraded CNC milling machines,and a year later it completed development of a direct-coupling transmission-milling device to boost the feeding speed of its CNC milling machines.
 
Nancy Lin,the firm's sales manager,said that Frank Phoenix places strong emphasis on the development of innovative products and the boosting of product quality.One of the results of this emphasis is a bed-type CNC milling machine featuring one-piece rigid bed casting and extremely wide slideways supported by full-length saddles and a strong type work head to ensure outstanding heavy cutting performance.Other features include large and rigid chip trays and an operator panel equipped with an extended support arm that makes for easy and efficient control.
 
One of the main competitive advantages of the company's CNC milling machines,Lin commented,is a wide range of models with X-axis travel of 800-3000mm,giving customers a variety of choice in terms of performance and price.In addition to the domestically developed IPC controllers,Frank Phoenix also uses imported controllers bearing such prominent brands as Fagor,Anilam,and Fanuc.
 
All of the company's machines are inspected and calibrated(in X,Y,and Z axes)via laser testing and ball bar calibration(in the YZ and XZ planes as well as the XY plane),and are test-run for at least 72 consecutive hours before shipping.
 
Frank Phoenix's milling machines are exported to markets all over the world,including Europe,the Middle East,South America,and Russia.Both shipments and revenues have grown at an annual rate of 5-10%in recent years.
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Lih Chang Boasts Seasoned R&D Team
Lih Chang Machinery Co.was established in 1984 to make conventional vertical turret milling machines,and has developed into one of Taiwan's foremost specialists in the production of CNC machinery.With a management philosophy that emphasizes the pursuit of reliability and stability,the company has constantly increased its size,setting up a plant with an area of 39,600 square meters in Nanjing,China in 1997,reported general manager William Chen.

While machining centers are capable of performing some of the functions of traditional milling machines,Chen said,the milling machine market has not declined,thanks to the price advantage of milling machines and the popularity of DIY in western countries.Lih Chang's current product line includes vertical turret milling machines,CNC double-column machining centers,CNC tapping centers,CNC high-speed machining centers,and CNC machining centers.With a seasoned R&D team continuously working to upgrade manufacturing technology,the company is now able to offer more than 10 models of milling machines to meet the differing needs of its customers.
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The company has suffered from the increasing cost of raw materials and components,but it still insists on enhancing product quality by using a high ratio of locally made parts along with bearings from Japan in its milling machines,which were awarded EMD-MARK certification by SLG in 2005.The firm also boasts ISO 9001 certification,testifying to its strict quality control.
 
Lih Chang began promoting its own"ARGO"brand in 1989 and has sold sophisticated machines under that brand in markets all over the world,including Asia,Europe,the U.S.,Africa,and South American countries such as Brazil and Argentina.Overseas after-sales services are provided through agents that offer instant consultation and maintenance.According to Chen,the company exports over 90%of its milling machines.
 
Despite the European debt crisis,the market for machine tools remains stable,Chen said.Lih Chang's revenue has grown by an annual average of 15%in the past two years,reflecting its motto of"Insistence on sustainable development."
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Para Mill Firmly Insists on Product Quality
The Para Mill Precision Machinery Co.was established in the central Taiwan city of Taichung in 1986,starting out by making vertical and horizontal milling head units and heavy-duty horizontal milling machines.Today,the company is one of Taiwan's most experienced manufacturers of milling heads and large-sized complex machines for processing large molds.The current product line includes CNC double-side milling machines,vertical/horizontal milling head units,and heavy-duty horizontal milling machines.
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Under the guiding principles of"diligence,honesty,and reliability,"the company is firmly insistent on product quality.It began developing double-side milling machines in 1996 and,after seven years of effort,launched its first such machine.Double-side milling machines are now Para Mill's best-known products,noted the firm's general manager,Hsieh-Li Lin.
 
The company now focuses on large-sized machines to fill a growing demand in international markets,including the HM series of double-side milling machines that are especially suited to the making of plastic and steel molds.The machines have a cutting range of 75mm x 75mm to 1000mm x 1000mm with"one setup for four sides"machining.The firm also produces the fully automatic HM-20050DS6 series,which is especially designed for mold base,hydraulic manifold,and square or rectangular block machining.
 
Para Mill's efforts have earned it a strong global reputation as a reliable supplier of milling machines.Most of its milling machines are exported under the"Para Mill"brand to Southeast Asia and mainland China.
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Taiwanese Milling Machine Makers Grow Despite Global Economic Woes