Economy

MOEA gears up to promote aerospace sector

Taiwan-made aircraft parts are set to lift the island’s aerospace industry to new heights in 2012. (CNA)

• Publication Date：07/05/2012
• Source： Taiwan Today
• By  Meg Chang

Taiwan’s aerospace firms are set for significant promotion under a four-pronged ROC Ministry of Economic Affairs strategy aimed at strengthening overall competiveness of the sector.

“The ministry’s approach focuses on sharpening core competence, organizing industry consortiums, promoting regional collaboration and developing high-value products and application services,” an MOEA official said July 4.

With the global aerospace industry set to expand 5.1 percent per year on the strength of increasing demand for air travel, the official said Taiwan can ill-afford to be left on the sidelines as neighboring economies move to carve out a hefty slice of this growth.

“Asia will be the leader of all market segments, with 33,500 new airplanes joining existing fleets in the following 20 years,” the official said. “Taiwan must capture its share of this business and boost the bottom lines of local aerospace sector participants.”

Surging worldwide demand for advanced aerospace technology has seen companies focus on developing high-performance, high-strength, lightweight and energy-efficient components and materials, the official said. This has seen Taiwan-related investments hit a record high of NT$6.47 billion (US$216.7 million) since 2011, with new investment totaling NT$3.27 billion as of June, up 21 percent year on year.

The efforts of local aerospace firms in catching this global wave have also caught the eye of their Japanese counterparts. Looking to establish a secure backup production base since the March 2011 earthquake and tsunami that devastated northeastern Japan, these companies now view Taiwan as a viable candidate.

Case in point is the March visit of a delegation organized by the Society of Japanese Aerospace Companies to Taiwan. Comprising 32 Japanese officials and business leaders, the group spent five days on a fact-finding mission touring the island’s relevant infrastructure.

Following the delegation’s return to Japan, Fuji Heavy Industries Ltd., Kawasaki Heavy Industries Ltd. and Mitsubishi Heavy Industries Ltd. opened discussions with local suppliers on producing special metals and composite materials. Possible investment is estimated by industry insiders at over NT$5 billion.

Another Japanese firm also pledged to invest NT$460 million in a central Taiwan-based precision molding plant for aerospace aluminum alloys. The new venture is expected to create 100 local jobs with annual revenue reaching NT$600 million. (JSM)

Write to Meg Chang at sfchang@mail.mofa.gov.tw