TECO Lands Year-long Order for Commercial Air Con from Japan

TECO Electric & Machinery Co., Ltd., a leading Taiwanese supplier of motors and household appliances, has landed a year-long order for large-sized commercial air conditioners from a Japanese buyer, according to the firm.

The company emphasized that this order marks its entry into the Japanese market for large commercial air conditioners, which is expected to greatly enhance its brand recognition among clients in China and East Asia to fuel sales growth in the short term. The Japanese customer is reportedly Nippon Steel & Sumitomo Metal Corporation, the country's largest steelmaker by size, who has ordered more than 100 units from TECO this year for use nationwide.

Driven by the order, sales of TECO's air conditioners, including the intelligent cloud energy-saving inverter model which was honored as a winner of Taiwan Excellence Awards 2013, are very likely to surge by 20% yearly to drive growth of profit this year, along with heavy electrical equipment and motors.

TECO is quite optimistic towards its commercial air conditioner business in the years to come, as the firm has joined hands with a local partner to promote such products, including its water cooled VRF (variable refrigerant flow) system, in China and Southeast Asia. So far, the company's products are widely used in factories, apartments and luxury houses in those markets, making it increasingly confident of attaining annual sales of over NT$10 billion (US$333.33 million) in four years, given that market demand there remains very strong.

After scoring consolidated revenue of NT$56.636 billion (about US$1.88 billion) for a 17.96% annual increase last year, TECO, the world's top-3 maker of middle and large-sized motors, is expected by institutional investors to score better performance this year, mainly because the company's businesses, including automotive electronics and wind turbines, all show brightening prospects as the global economy is on the mend. (SC)