German engineering conglomerate Siemens is planning to establish a high-end machine tool control technology application center in Taiwan, a Ministry of Economic Affairs official said yesterday.
Meanwhile, the leading German machine and turret producer Sauter is also expanding its production line in Taiwan, the official said.
The announcement came after Industrial Development Bureau (IDB) Director-General Woody Duh (杜紫軍) visited the two companies in Germany with a group of officials to seek business investment and to increase the output of self-produced machinery controllers in Taiwan.
LETTER OF INTENT
According to the official, Siemens has agreed to launch a center and sign a letter of intent with the Committee for Precision Machinery Industry Development, which will provide services and assistance relating to the company’s future investment.
Sauter has committed to expanding its operations in Taiwan and to further localize its production of turrets, a key component in the machine tool industry, helping it to cut key costs, the official said.
Aside from adding 15 local managerial positions, Sauter is expected to pour in an additional NT$200 million (US$6.9 million), the official said.
The machine tool sector is one of the industries that has benefited the most from the signing of the Economic Cooperation Framework Agreement (ECFA) between Taiwan and China last year, the official said.
With 17 machine tool items on the ECFA early harvest list, machine tool companies from next year will be able to enjoy zero tariffs on exports to China.
The technology application center Siemens is to develop is expected to boost Taiwan’s competitiveness and help it outpace Italy to become one of the world’s top three in machine tool exports, the official said.
Taiwan was the world’s fourth-biggest machine tool exporter last year, behind Germany, Japan and Italy.