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Forwell’s Huai’an Plant in Mainland China Builds a One-Stop Production Line, Introducing Transport Robots to Significantly Reduce Waste and Replicate the Model at Taiwan Plant
August 20, 2025
Jen-Yi Chen, Commercial Times
Wen-Lung Hsiao, Executive Director of the Taiwan Association of Machinery Industry and President of Forwell Technology Group, expressed deep concern about the current market challenges facing the machinery industry. He noted that from the COVID-19 pandemic to multiple geopolitical conflicts over the past three years, the global economy has remained in a persistent downturn, shrouded in uncertainty. This has led to significant declines in orders and revenue for most Taiwanese machinery companies. This year, additional pressures from U.S. tariff disputes and the appreciation of the New Taiwan Dollar have caused a sudden loss of competitiveness in export markets, pushing some companies to the brink of losing orders entirely. Although U.S. tariffs have now been clarified, Taiwan has not secured more favorable rates compared to competitors like Japan and South Korea. Coupled with the ongoing impact of the strong New Taiwan Dollar, most machinery companies are deeply worried and uncertain about the future.
Hsiao further pointed out that the U.S. is one of the primary export markets for Taiwan’s machine tools and other machinery equipment. Tariffs exceeding 15% pose a significant survival challenge for Taiwanese machinery companies. While tariff issues might be mitigated through negotiations with clients, exchange rate fluctuations remain the most critical factor affecting business survival. The strong appreciation of the New Taiwan Dollar is the greatest threat to the existence of Taiwan’s machinery industry. Hsiao urged government authorities to address this issue seriously, assist the machinery industry in overcoming these challenges, and ensure its long-term standing in the international market.
Hsiao also shared that Forwell’s Taiwan plant currently has a domestic-to-export revenue ratio of 7:3, while the Huai’an plant in mainland China primarily serves the Chinese market. After nearly two years of subdued revenue, the Taiwan plant saw a recovery in June this year, with monthly revenue approaching its set target. However, this positive development was short-lived, as political tensions and high tariffs have reintroduced uncertainty into the market. Hsiao earnestly hopes for a swift return to a stable and prosperous market environment in Taiwan. He remains cautiously optimistic about the mainland China market, projecting a slight revenue increase for 2025 compared to 2024.
Hsiao stated that to align with the trends of smart manufacturing, artificial intelligence (AI), and one-stop production lines, Forwell’s Huai’an plant has begun establishing an internal factory map and plans to introduce automated guided vehicles (AGVs). These transport robots will automatically move processed parts to the next station or deliver assembled components to designated locations. By implementing AGVs, the plant’s production line can meet the demands of a seamless one-stop process and achieve the goal of upgrading to smart manufacturing. The entire process, from manufacturing and assembly to shipping, will be planned for intelligent automation. This initiative is expected to be fully implemented within six months, achieving the goal of an intelligent one-stop production line. In the future, this plan will be successfully replicated at the Taiwan plant.
He emphasized that in response to future market demands and economic changes, “upgrading and transformation” is the best and most effective solution. This approach not only leverages technical expertise to achieve upgrades but also meets the needs of rapidly changing markets. The outdated model of single-machine, standalone production can no longer meet today’s competitive environment. Multi-machine, one-stop production is the current trend, and reintegrating and simplifying various processing stages into a one-stop production line is the future direction.
Jen-Yi Chen, Commercial Times
Wen-Lung Hsiao, Executive Director of the Taiwan Association of Machinery Industry and President of Forwell Technology Group, expressed deep concern about the current market challenges facing the machinery industry. He noted that from the COVID-19 pandemic to multiple geopolitical conflicts over the past three years, the global economy has remained in a persistent downturn, shrouded in uncertainty. This has led to significant declines in orders and revenue for most Taiwanese machinery companies. This year, additional pressures from U.S. tariff disputes and the appreciation of the New Taiwan Dollar have caused a sudden loss of competitiveness in export markets, pushing some companies to the brink of losing orders entirely. Although U.S. tariffs have now been clarified, Taiwan has not secured more favorable rates compared to competitors like Japan and South Korea. Coupled with the ongoing impact of the strong New Taiwan Dollar, most machinery companies are deeply worried and uncertain about the future.
Hsiao further pointed out that the U.S. is one of the primary export markets for Taiwan’s machine tools and other machinery equipment. Tariffs exceeding 15% pose a significant survival challenge for Taiwanese machinery companies. While tariff issues might be mitigated through negotiations with clients, exchange rate fluctuations remain the most critical factor affecting business survival. The strong appreciation of the New Taiwan Dollar is the greatest threat to the existence of Taiwan’s machinery industry. Hsiao urged government authorities to address this issue seriously, assist the machinery industry in overcoming these challenges, and ensure its long-term standing in the international market.
Hsiao also shared that Forwell’s Taiwan plant currently has a domestic-to-export revenue ratio of 7:3, while the Huai’an plant in mainland China primarily serves the Chinese market. After nearly two years of subdued revenue, the Taiwan plant saw a recovery in June this year, with monthly revenue approaching its set target. However, this positive development was short-lived, as political tensions and high tariffs have reintroduced uncertainty into the market. Hsiao earnestly hopes for a swift return to a stable and prosperous market environment in Taiwan. He remains cautiously optimistic about the mainland China market, projecting a slight revenue increase for 2025 compared to 2024.
Hsiao stated that to align with the trends of smart manufacturing, artificial intelligence (AI), and one-stop production lines, Forwell’s Huai’an plant has begun establishing an internal factory map and plans to introduce automated guided vehicles (AGVs). These transport robots will automatically move processed parts to the next station or deliver assembled components to designated locations. By implementing AGVs, the plant’s production line can meet the demands of a seamless one-stop process and achieve the goal of upgrading to smart manufacturing. The entire process, from manufacturing and assembly to shipping, will be planned for intelligent automation. This initiative is expected to be fully implemented within six months, achieving the goal of an intelligent one-stop production line. In the future, this plan will be successfully replicated at the Taiwan plant.
He emphasized that in response to future market demands and economic changes, “upgrading and transformation” is the best and most effective solution. This approach not only leverages technical expertise to achieve upgrades but also meets the needs of rapidly changing markets. The outdated model of single-machine, standalone production can no longer meet today’s competitive environment. Multi-machine, one-stop production is the current trend, and reintegrating and simplifying various processing stages into a one-stop production line is the future direction.
Hsiao further explained that adopting a one-stop production line reduces material handling across various processing stages, significantly minimizing waste from idle materials, time, and labor. Upgrading production lines through streamlined assembly processes can effectively enhance productivity and achieve the goal of intelligent, automated production.
