March 03, 2010
Taipei, March 3, 2010 (CENS)--Seeing the price hike in such raw materials and key components as steel, cast iron and CNC (computerized numerically controlled) devices, Taiwan`s leading manufacturers of machine tools will raise selling prices of products starting April 1.
Taiwan`s leading manufacturers of machine tools, including Victor Taichung Machinery Works Co., Tongtai Machine & Tool Co., Kao Fong Machinery Co., will raise the selling prices by between 5% and 8%.
The global meltdown cut Taiwan`s machine-tool makers` sales last year by record drops. With the overall economy bottoming out in the fourth quarter of last year, many firms have raised selling prices to reflect higher material prices.
Before the lunar New Year break, Goodway Machine Corp. and its affiliate Awea Mechantronic Co. had already raised selling prices by 5%. Edward Yang, chairman of both Goodway and Awea, noted his companies have to hike the selling prices by at least 10% this time to offset higher production costs.
Other machine-tool manufacturers, including Chin Fong Machine Industrial Co. and Dah Lih Machinery Industry Co., have also resolved to raise selling prices beginning from April 1.
An industry insider noted the prices for raw materials have been continually rising over the past few days. For instance, the prices for steel plates have risen to NT$20 (US$0.625) from NT$16 (US$0.5) per kilogram; the prices for pig iron have jumped to NT$18 (US$0.56) from NT$12 (US$0.375); the prices for cast iron, rising to NT$38 (US$1.18) from NT$32 (US$1); and the prices for CNC devices have risen by 8%.
(by Ben Shen)
Source: CENS
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