Korean Machine Tool Makers Urged to Establish China Plants

Korean Machine Tool Makers Urged to Establish China Plants Machine tool makers in South Korea should establish plants locally in China, the Korea International Trade Association (KITA) said in a report it lately released. The aim of the move is to help secure a foothold in one of the world's fastest growing markets, the association said. Currently, only two to three out of the 30 Korean machine tool companies which have subsidiaries in China, are having local factories in the market. South Korea's machine tool shipments to China rose by 19.5% last year, but market share stood at only 6.8%, down 1.1 percentage points from a year earlier, outperformed by Japan, Taiwan and Germany. The association said Korean makers would be able to rise to be one of the world's top three players in the sector, as long as they can advance into China market successfully. Korean machine tool shipments to China amounted to US$1.16 billion in 2005, and are expected to reach US$1.4 billion this year. China's machine tool market now accounts for a fifth of the global market.