JAPAN FOREIGN INDUSTRIAL MACHINE ORDERS SOAR 57% IN OCT

AAP General News (Australia)
12-09-1999
JAPAN FOREIGN INDUSTRIAL MACHINE ORDERS SOAR 57% IN OCT

TOKYO, Dec 9 Asia Pusle - Overseas demand, mainly from other Asian countries, for Japanese
industrial machinery is fast recovering, with foreign orders in October surging 57.8%
year on year to 64.78 billion yen, shows a report released Wednesday by the Japan Society
of Industrial Machinery Manufacturers.

The rebound follows a year-on-year decline in September. Economic resurgence in the
region is bolstering demand for plastic processing machines, including injection molders
used to make resin connectors and other precision parts. The value of orders placed by
overseas clients for plastic processing machines shot up 66.0% to 8.95 billion yen.

An official at Sumitomo Heavy Industries Ltd. (TSE:6302) said, "We are enjoying brisk
exports to personal computer makers, especially in Taiwan." All injection mold makers
are lifting production by adding workers and operating plants on weekends and holidays.

Japanese chemical-machine makers received overseas orders totaling 27.29 billion yen,
up 324.8% on the year-earlier amount, the report shows.

But domestic demand for industrial machinery plunged more than 30% in October because
public demand has gone off the boil. Moreover, companies remained reluctant to undertake
capital spending.

Combined domestic and foreign demand for industrial machines declined 19.3% to 259.50
billion yen in October, the report said, posting the second straight month of year-on-year
decline.

(Nikkei)

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