Increased automation demand has prompted equipment suppliers to expand

Increased automation demand has prompted equipment suppliers to expand

Taiwan's automation equipment supplier Weideke International Co., Ltd. plans to build a new factory in Ningbo, Zhejiang Province to meet the strong demand for automatic machinery across the Taiwan Strait.

Rising labor costs, as well as demands for capacity and quality control, are driving mainland companies to invest in automation machinery. Increased automation demand has prompted equipment suppliers to expand

Allen Lin, head of Wedak Co., Ltd., told the International Plastics and Rubber Industry Exhibition in Taipei that the plant is scheduled to start production in the second half of 2015 and that the monthly automatic machinery capacity will be 200 units.

The amount and size of the plant have not yet been finalized, but L will have about 120 employees. The company’s R&D work remains in Taiwan.

The company plans to cooperate with other companies to supply some of China's most demanding industries. Lin said: "China's auto industry is very large."

At present, the company's Taoyuan plant produces about 50 machines per month, including automatic machinery, in-mold labeling systems, PET mold post-cooling systems, and 32-cavity cutlery manufacturing equipment. The control system will also remain in Taiwan.

The private company declined to disclose sales figures. But Lin said that the US market, which was insignificant in 2012, now accounts for about 15% of total sales.

The company has high hopes for the in-mold labeling system in the United States market. Lin said that the technology has been favored by the consumer packaging industry in Asia, but it has rarely penetrated the US market.

The Ningbo plant marks the 28-year-old automation equipment manufacturer re-entering the Chinese market with great fanfare. The company’s partnership with a Dongguan factory was terminated on January 1. Teresa Wang, the company's marketing director, said that his Chinese partner wants to create his own brand.

The company will open a sales and service office in Shanghai in early 2015.

Last year, the company established a European branch in Istanbul.

Wang said that Wetec's machines are 15-20% cheaper than Japanese and European competitors, and their equipment is smaller, lighter, and easier to maintain.

In other automation equipment news, due to construction delays, Fuwei Precision Machinery Co., Ltd., a Taiwanese automation supplier, delayed its plant in Huaian, Jiangsu until the end of this year. Its acting general manager, Victor Lim, disclosed the news.

This $10 million, 36,000 square meter research and production facility was originally scheduled to begin production in the middle of this year. There are about 200 employees.

Despite delayed production, Fu Wei is still optimistic about the Chinese market. However, the plan to issue IPOs in the Chinese stock market has also been postponed until 2017.

Fuwei has built a factory in Ningbo. Ningbo is the center of China's plastics production equipment industry.

Driven strongly by the Chinese market, Fuwei’s sales climbed by about 10% this year.

Lim demonstrated an orbital mold automatic storage system designed to simplify the handling and storage of expensive expensive molds. This machine is scheduled to be listed by the end of December.

Lim said Fu Wei’s next important step is to develop the Indian market. "In India, labor costs are low, but quality control is a problem."

About 60% of Fuwei's sales come from injection molding process automation equipment. Other sales come from metal forming.

Tenso Machinery Industrial Co. Ltd. Faber Jeng, the company’s sales manager, said that the demand for stable output is driving the growth of machine sales, even in Southeast Asian countries with low labor costs.

Jeng said that when customers invest in automatic machinery, they can ensure good quality control. The company's most important markets are Indonesia and Thailand.

Faber said that because Taiwan’s labor supply is stable, Tenso is reluctant to relocate production to the mainland. "It is not that simple to build a factory there to produce automatic machinery."

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