Su Tseng-Chang Visit Leadermac for the Development of Smart Machinery Industry


26 January 2019, Su Tseng-Chang, Premier of the Republic of China, Shen Jong-Chin, Minister of Economic Affairs, and Leu Jang-Hwa, Director General of Industrial Development Bureau, visited Leadermac Machinery Co., Ltd., Taiwan’s biggest 4-sided moulder manufacturer, to understand the development expectation of Taiwan woodworking machinery  industry. The visit is considered to bring resource integration between government and woodworking machinery industry, which will assist in industrial intelligent transformation to boost global competitiveness.

Su Tseng-Chang said that Leadermac is the first company he has visited since taking over Premier of R.O.C. Su expected “Taiwan’s victory” starts from here. At the same time, Su also asked every ministries to assist enterprises solving problems. As long as enterprises become more profitable, government can have more income to apply more policies to benefit nationals.

Today’s Taiwan Woodworking Machinery Industry 

Su pointed out that over 80% of Taiwan’s woodworking machinery rely on export.  And there are about 300 manufacturers, mostly small and medium-sized enterprises. More than 80% of these manufacturers are concentrated in central Taiwan, mainly in Fengyuan and Shengang. The total number of employees is about 5,000 people. And due to the industrial cluster of upply chains, manufacturers can obtain accessories and parts in short time, which is the biggest advantage of Taiwan's woodworking machinery.

According to ITC (International Trade Centre), the global export value of woodworking machinery in 2017 was about 6.836 billion US dollars, Germany ranked the first, accounting for 24.1% (US$1.645 billion) of the world's woodworking machinery exports. Second, China's 18.8% ($1.285 billion) and Italy's 18.1% ($1.236 billion), Taiwan’s woodworking machinery ranked fourth in the world's exports, export value of about 521 million US dollars, accounting for 7.6% of global exports, occupying a pivotal position in the international market.

The top five countries in Taiwan's woodworking machinery exports are the United States, China, Vietnam, Canada, and Indonesia. Although the overall output value of woodworking machines declined slightly in 2018, with the reversal effect of China-US trade war and the recovery of the global economy, it should be able to drive the growth of the consumer market. Thus, the export growth of woodworking machinery can be expected.


Apply Intelligent Machinery Industrial Policy to Speed up Industry Upgrades

During the visit, Su admired that Leadermac ranked the second largest market share of 4-sided moulder in the world. Also, Su recognized the application of intellectual manufacturing, which can monitor issues and schedule of production lines to increase efficiency and quality. Michael Chang, the CEO of Leadermac, indicated that the company now have 17 patents related with woodworking machinery. Also, Chang introduced 3 topics of Leadermac’s achievements. The first is “New serie of 4-sided moulder”, which apply self-developed software, and respond to the shape of cutters that can produce three-dimensional wood grain; The second is “hand-scraped wood flooring machine”, which allow each hand-scraped floor to have unique pattern design; The third is the demo of “Intellectual machinery IoT Platform”, which will display issues of remote machines to platform operators. On the other hand, in regards of industry-university cooperative research projects, Leadermac have cooperated with Shalu Industrial High School and National Chin-Yi University of Technology to energize the company. Let employees and managers to grow together with company.

Su replied, with the fourth industrial revolution, the government has been actively promoting smart machinery industry. The goal is to upgrade Taiwan’s precision machinery to smart machinery. By focusing on complete supply chain and solid industrial foundation, it will support the future development of smart manufacturing and various industries.

Due to different scale of Taiwan’s industrial manufacturers, some large manufacturers have moved towards intellectual production. However, most of the small and medium-sized enterprises haven’t digitalized yet. Therefore, the government has set up a “Smart Manufacturing Counseling Group” to promote “Smart Machine BOX, SMB” and AI application plan. The group provide SMEs with consultation and diagnosis, equipment networking, digitalization application and smart manufacturing. On the other hand, with the Ministry of Economic Affairs supporting the development of W-Team alliance in woodworking machinery industry, manufacturing have the experience in technology and equipment integration.

At present, Leadermac takes the lead in using intelligent technology. In 2018, Leadermac applied the technology of Smart Machine Box,  visualized the information of utilization and production management, and connected to online. Su admired that this is the best demonstration of the cooperation between enterprise and the government.

Su expected Ministry of Economic Affairs can have closer cooperation with woodworking machinery industry; The leading enterprises can take the lead in demonstrating; And small and medium-sized manufacturers will actively participate in the process of joint development and joint marketing. Su believe that with the joint efforts of all, Taiwan will continue to innovate and break through that create a new opportunity for sustainable growth, and become a global supplier of woodworking machinery!