Compressor Maker Rechi Precision to Expand Output

Taipei, Feb. 16, 2011 (CENS)--Rechi Precision Co., Taiwan's largest manufacturer of air-conditioner compressors, has invested NT$500 million (US$17.12 million) to set up new a grinding plant in Huizhou, Guangdong province, China, with the new factory expected to start mass production in late March, and the total output to be 1.5 million inverter compressors per year.

The Huizhou plant is expected to roll out 1.1 million pumps in 2011, which will help Rechi to roll out 10 million inverter compressors both in Taiwan and China. Institutional investors predict Rechi may produce as many as 10.5 million inverter compressors this year.

Rechi said it has seen order visibility through the end of the second quarter of this year. In addition, the company has received orders for inverter air-conditioner compressors from China's top-10 home-appliance firms, including the largest one--Haier Group.

This maker is working round-the-clock to fill orders. With substantial sales growth in China, Rechi's consolidated sales reached NT$1.293 billion (US$47.7 million) in January, up 45% from a year earlier for the third-highest monthly sales record in history.

In addition to increased output, Rechi has made concrete plans to develop centralized air-conditioner compressors to meet the demand in North America. By mid-year, the company will also be producing commercial hot-pump compressors, hot-pump modules for driers, and inverter controllers.

Institutional investors predict Rechi's consolidated sales to reach between NT$13 billion (US$445.2 million) and NT$14 billion (US$479.45 million) in 2011.