2006 Taiwanese Plastics and Rubber Machinery Industry Update

Article by C.C. Wang

Vice President, Taiwan Association of Machinery Industry

The annual production value of the Taiwanese plastics and rubber machinery industry for 2006, estimated at NT$37.3 billion (US$1.14 billion), showed a slight growth of 0.3% over the previous year. The total exports in 2006 reached NT$30.53 billion (US$940 million), also an increase of 0.3% over the previous year while the imports amounted to NT$11.46 billion (US$350 million), jumping by 18.3% from the previous year.

I. Production of Taiwanese Plastics and Rubber Machinery

In 1994, due to the impact of China’s macro-economic control, a tightened capital supply, in addition to large fluctuations in the value of plastics raw materials worldwide, the production of Taiwanese plastics and rubber machinery was only NT$18.4 billion (US$710 million), a decline of 10% from the previous year. That for 1996 reached NT$25.6 billion (US$950 million), showing a sharp increase of 23% from 1995.

In 1997 and 1998, production values again dropped due to the Asian Financial Crisis, and exports declined to only NT$23.7 billion (US$820 million) and NT$19.6 billion (US$590 million), decreases of 7% and 17%, respectively, from previous years. With the global economy growing steadily in 2004, production value reached a record high of NT$37.6 billion (US$1.12 billion). In 2006, production value gained slightly by 0.3% from the previous year to reach NT$37.3 billion (US$1.15 billion).

II. Exports of Plastics and Rubber Machinery by Destination

Based on monthly customs reports on imports and exports of Taiwanese plastics and rubber machinery, the total export in 2005 was around NT$30.45 billion (US$950 million) while that for 2006 was NT$30.53 billion (US$940 million).

In terms of export destinations, the 2006 data showed the largest export markets to be Hong Kong and China, for which exports reached US$428.6 million, accounting for 42% of Taiwan’s total plastics and rubber machinery exports, increasing 1% from the previous year. The second largest was Thailand. The export value was US$56.05 million, accounting for 6% of the total amount and a decline of 12% from the previous year. Vietnam ranked third, with US$36.87 million in export value and accounting for 3.9% of the total amount, with a decline of 16% from the previous year.

III. Imports of Plastics and Rubber Machinery by Place of Origin

Taiwan’s imported plastics and rubber machinery products were worth NT$9.69 billion (US$300 million) in 2005, a plunge of 51.5% from the previous year. The import value in 2006 was NT$11.46 billion (US$350 million), increasing 18.3% from the previous year.

Places of origin for imports in 2006 included Japan, with supplies worth US$179.37 million, accounting for 51.1% of total imports and an increase of 8% from the previous year, followed by Germany, with US$47.49 million, accounting for 13.5% of the total amount and a decrease of 15.0% from the previous year. Mainland China and Hong Kong ranked third, with US$36.61 million, accounting for 10.4% of the total and an increase of 41% from the previous year.

IV. Update on Exports & Imports between January and May 2007

Exports of Taiwanese plastics and rubber machinery surged between January and May 2007. The primary export products were plastic injection molding machines, extrusion machines and blow-molding machines. The total export value reached US$377.54 million, an increase of 2.9% from the previous year.

Exports

• China and Hong Kong ranked first, with export value of US$145.17 million, negative growth of 6.5% compared with the previous year.

• Vietnam ranked second, with an export value of US$20.95 million, accounting for 5.5% of total export value and an increase of 35.6% from the previous year.

• Thailand ranked third, with an export value of US$19.55 million, accounting for 5.2% of the total export value and negative growth of 35.6% compared with the previous year.

• Others were Malaysia, with an increase of 27.6%; Turkey, with an increase of 22.3%; Japan, with an increase of 21.2%; Indonesia, with an increase of 10.9%; the U.S., with an increase of 48.1%; India, with an increase of 15.8%; and Finland, with an increase of 156%. The top-ten export destinations accounted for 7% of total export value.

Imports

Imports increased between January and May 2007 primarily because of the continued demand for equipment in the high-tech industry. Total import value reached US$133.19 million, increasing 9.9% from the previous year.

• Japan ranked first, with an import value of US$49.83 million, accounting for 37.4% of the total import value and negative growth of 39.9% from the previous year.

• Germany ranked second, with an import value of US$35.14 million, accounting for 26.4% of the total import value and an increase of 249% from the previous year.

• China and Hong Kong ranked third, with an import value of US$19.03 million, accounting for 14.3% of the total import value and an increase of 39.2% from the previous year.

• Others were the U.S., with an increase of 87.6%; Korea, with an increase of 658%; and the U.K., with an increase of 341%. The top six places of origin accounted for 92% of the total import value.