Asian machine tool manufacturers remain optimistic about trade with the Middle East, despite the global economic meltdown.
This was the view echoed at a trade show for the machine tool industry currently being held in Taiwan. But, concerns over machines being purchased in bulk and re-exported by unauthorised middle men, as well as general concerns regarding the recession, have deterred several large firms from pursuing business leads in the region. In Persia, trade sanctions with Iran have been cited as another reason.
Jade Chen, general manager of Chin Fong Machine said: “The Middle East is a rising market that we want to focus on.”
“Last year we signed a deal with a firm in Dubai – a joint venture. We also have a deal to supply equipment in Turkey.”
He added: “For cost reasons, [the customers] often first check Chinese suppliers, but for quality and performance factors, more and more, they are coming to Taiwan.”
This view was echoed by others, though with a note of caution. “The market demand is small, but increasing in the Middle East,” said Michael Shih, president of Falcon Machine Tools. “However, we have to be careful. From my understanding, some machines shipped to [the region] have then been re-exported to other countries.”
Re-exporting complex machinery can lead to a host of problems for suppliers, including spare parts and back-up warranties being void.
At the third day of the Timtos trade show, visitor numbers appear to have picked up considerably, with dealers reporting a surge of international visitors – many of whom from Iran .
Trade restrictions have hampered, though not severed supply of tools to the vehicle parts and electronics industry of that country.