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Japan, not Korea, machine tool sector's biggest foe: Hiwin chairman

Japan, not Korea, machine tool sector's biggest foe: Hiwin chairman

Taipei, March 1 (CNA) South Korea has been portrayed as the biggest threat to Taiwan's machine tool sector as it prepares to sign a free trade deal with China, but one Taiwanese machine tool executive says the sector is currently under much greater pressure from Japan. Eric Chuo (???), chairman of Taichung-based Hiwin Technologies Corp. (????), told CNA that the dramatic depreciation of the Japanese yen has strengthened the competitiveness of Japanese machine tool exporters in China. Machining centers produced by medium-sized Japanese machine tool companies "are already cheaper than Taiwan's," said Chuo, whose company produces a complete line of motion control products and employs more than 3,500 people around the world. He urged Taiwanese machine tool producers to accelerate research and development efforts and upgrade-oriented transformation through cooperation with academia to improve their competitiveness in international markets. Speaking of the imminent China-South Korean free trade agreement initialed on Feb. 25, Chuo said he felt the deal would not greatly affect Taiwan's machine tool industry.
Chuo said South Korea is not strong in producing machining centers, which are Taiwan's main machine tool export to China. The mainland is Taiwan's largest market for machine tools, with 32.4 percent of Taiwan's machine tool exports shipped to China in 2014, according to Ministry of Economic Affairs data. Machining centers accounted for 60 percent of the exports and lathes the other 40 percent, industry sources said. (By Jalen Chung and Elizabeth Hsu)


Updated : 2021-09-21 09:53 GMT+08:00