Taichung, Taiwan: Goodway Machine Corporation, a manufacturer of computer numerical control (CNC) machines for car component suppliers, plans to invest NT$2 billion (US$65.9 million) in smart machinery to offset rising labour costs.
The company’s plan to build the smart factory is aimed at meeting growing demand from customers in the automotive industry. The company makes gears for transmission systems in electric carmaker Tesla Motors Incorporated’s lower-priced compact sedan Model 3.
“We have to put effort into smart machinery, as production costs will inevitably rise,” said Edward Yang, chairman, Goodway.
The company also has other expansion plans, which include a new plant at Dapumei Intelligent Industrial Park, Taiwan, that is likely to start trial production at the end of the fourth quarter this year. The plant will manufacture mainly CNC machines for the aerospace and energy industries.