Victor Taichung Machinery Works Co (台中精機) expects its new “smart factory” to generate annual revenue of NT$6 billion (US$189 million) after 2018, company chairman Bert Huang (黃明和) told reporters at a forum held by the Ministry of Economic Affairs yesterday.
“In the long term, we expect the smart factory to generate sales of more than NT$10 billion,” Huang said.
The 62-year-old machine tool manufacturer said it would invest NT$3.5 billion on its smart factory in Taichung, with construction due to be completed in 2018.
The facility with four production lines, which will also serve as the company’s headquarters, spans nearly 3.1 hectares at the Taichung Gateway Park (水湳經貿園區).
By deploying sensors and other equipment, Victor Taichung hopes to optimize manufacturing efficiency through “big data” analysis.
Construction of the factory began in June, Huang said, adding that the company had set up a smart production line at its existing plant to prepare for the transition.
Instead of relying on imports, Victor Taichung plans to purchase most of its equipment for the new plant from local suppliers, including automated storage systems and robotic arms, hoping to stimulate local business opportunities in the smart machinery sector.
As the home to many machine manufacturers, Taichung is now embracing the development of smart factories, an industry-wide shift, Taichung City Government data showed.
More than 300,000 people are employed by machine makers in Taichung, forming an industry cluster with an annual production value of NT$900 billion, the data showed.
The government plans to transform the region into a smart machinery capital as part of President Tsai Ing-wen’s (蔡英文) initiative to focus on five innovative industries to stimulate economic growth.
In July, the Executive Yuan approved a plan for a series of hardware upgrades at factories in Taichung, aiming to create a friendly environment that turns Taichung into the hub of smart machinery.
The Taichung City Government is planning to acquire land to build a smart machinery innovation center at the Taichung Gateway Park, an official said yesterday.
The local government hopes to introduce global industrial groups to the center, such as Siemens AG, Asea Brown Boveri Ltd and Mitsubishi Group.
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