Hiwin Technologies Corp (上銀), which makes machine tools like ballscrews and linear guideways, said it has set a long-term target to more than double the combined revenue of the company and its subsidiaries to US$1 billion, from last year’s NT$14.09 billion (US$467.96 million).
“It will not take long for us to reach the target,” Hiwin chairman and CEO Eric Chou (卓永財) said at the company’s annual year end party on Friday, without giving an exact timetable.
To achieve the goal, the Greater Taichung-based company last year established subsidiaries in Italy, Singapore and South Korea, Chou said.
ACCESS TO ASEAN
The company will also benefit from the free trade agreement between Taiwan and Singapore by using its Singaporean branch as a stepping stone to the ASEAN market, he said.
The company is also going to invest NT$1.2 billion investment to build a manufacturing, research and logistics center in Suzhou, China, and a similar project in Offenburg, Germany, in May at the earliest, Chou said.
This year, Chou expects Hiwin’s revenue to grow year-on-year from NT$12.49 billion last year, while Hiwin Mikrosystem (大銀), which makes linear motors, will see revenue double from NT$1.6 billion a year ago as improving economic conditions boost demand for factory automation machines.
As the US redirects its focus to its manufacturing sector, demand for automation machines will rise, Chou said.
Hiwin owns about 14 percent of Hiwin Mikrosystem’s shares, it said.
CHINA DEMAND
Although the economic growth in China is likely to remain the same as last year, demand for automation machines in the country is strong as manufacturers plan to use more automation to cope with rising wages and a labor shortage, Chou said.
“We had a meeting with our dealers two weeks ago, and we learned that demand will pick up significantly after the Lunar New Year holidays,” Chou said.
Chou expected to ship 100 units of industrial robots per month in July, up from five units now, helped by an increase in capacity, he said. The growth would help boost the company’s gross margin, he said.
This year, Hiwin expects to double its shipment of industrial robots, moving the new business’ revenue contribution to 15 percent.
Commenting on the nation’s machine tools industry this year, Chou said it will depend on whether the yen will slide below the ¥110-US$1 mark, as well as the movement of the won.
Additionally, he said, local machine tool companies will face more competition from China this year.
This year, Hiwin plans to recruit between 1,000 and 1,500 people in Taiwan, Chou said.
The company plans to pay employees year-end bonuses equivalent to between 3.5 times and six times their monthly salary, Chou said.
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