1H Machine Production Up 8.3 Percent, Exports Up 24...

Tag : 3 In Machine
Domestic machine makers were found to have increased bothproduction and exports this year compared to last year despiteunfavorable production conditions with a surge in raw materialprices and contraction in facility investment in the first half ofthe year.

The machine industry posted production worth 164 trillion wonduring the January-June period this year, up 8.3 percent from thesame period last year, and exports of $68 billion, up 24.6 percentfrom a year earlier, the Korea Association of Machinery Industry(KOAMI) said Wednesday based on a survey conducted by the researchsociety of the machinery industry trends, which is constituted of11 major related organizations including the Korea ConstructionEquipment Manufacturers Association.

According to the survey, the construction mining equipment sectorincreased production by 33.6 percent during the first half of thisyear, higher than the 16.7 percent posted a year ago, thanks tosolid demand and new product development.

The refrigeration equipment sector -- which usually posts itshighest output for the year in the second quarter due to seasonalproduct launches -- saw however its production increase slow at 1.6percent this year, significantly lower than the 16.0 percent a yearearlier, which can be attributed to the recent walkout of unionizedtruckers, KOAMI explained.

Though unfavorable business conditions against machine makers arelikely also in the second half due to spiraling prices of oil andother raw materials and unstable exchange rates, the machineindustry is expected to maintain its growth as facility investmentplans are brought forward by the steel, automobile and shipbuildingindustries and exports firm in the emerging markets like China andSouthwest Asia, KOAMI predicted.

[Sun-young Park / KHS]



[