Japan’s Okuma to boost machine tool output by nearly 70% in Taiwan for export demand
TAIPEI, NNA – Japanese machine tool maker Okuma Corp. will beef up Taiwan production by nearly 70 percent to meet growing export demand from Southeast Asia, Europe, and the United States.
The company plans to build second and third plants on a site of Tatung-Okuma Co., its local joint venture, in New Taipei City for scheduled completion in June 2021, boosting output of lathes and machining centers, an Okuma spokesman told NNA on Tuesday.
The venture will invest 800 million New Taiwan dollars ($26.4 million) in the new facilities to ramp up monthly production to 500 units from 300. It expects to expand sales to about NT$6 billion from the current NT$4.4 billion and create 150 jobs, a spokeswoman said at the headquarters in Niwa, Aichi Prefecture in central Japan.
Around 90 percent of the existing factory’s output goes for overseas shipment, she added.
Tatung-Okuma, established in 1997, is owned 51 percent by Okuma and 49 percent by Tatung Co., major Taiwanese home appliance maker, with a capital of NT$172 million, according to the Japanese manufacturer.
As major subsidiaries outside Japan, Okuma has manufacturing units in Beijing and Taiwan as well as sales subsidiaries in Australia, Brazil, Germany, Shanghai, Thailand and the United States, according to its financial statement.
Last May, the company announced it would build its first new plant in 16 years in China after the one in Beijing in the eastern Chinese city of Changzhou to meet local customers’ automation needs directly and faster.