Kao Fong Machinery Co., Ltd. estimated it to ship around 200 machine tools to mainland China in 2013 as its agents in Anhui Province are likely to conclude several lucrative deals estimated at NT$600 million (US$20 million at US$1:NT$29).
Put aside the likely orders, the company has secured around NT$180 million (US$6.2 million) worth of orders from mainland Chinese manufacturers in Guangdong, Zhejiang and Anuhui Provinces.
According to Kao Fong’s chairman, K.R. Sheng, the company now has signed up 10 agents in China to help it expand sales in the mainland market. In 2013, the company will open branch offices in eight provinces, including Shanxi, Shannxi, Henan, Hunan, and Yunnan.
Industry executives pointed out that the mainland market accounted for around 45%, or NT$750 million (US$25 million), of the company’s 2011 revenue of NT$1.7 billion (US$58 million). They estimated revenue from the mainland market would rise to NT$850-900 million (US$29-31 million) in 2013 after the eight wholly owned branch offices are completed.
While expanding sales in the mainland market, Kao Fong, Sheng said, will also increase its presence in international markets, including the United States, Europe and the Middle East, which are planned to constitute 60% of its total revenue.
To tap these foreign markets, the company plans to open a branch in the U.S. at the end of 2012 and sign up North and South American agents. Having an agent in the U.S., the company plans to deploy at least 10 more agents in the States.