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TECO Plans Motor Assembly Plant in Japan to Drive Local Sales

2014/04/14 | By Steve Chuang

After landing a big order for commercial large-sized air conditioners from a Japanese customer to mark its entry into the market, TECO Electric & Machinery Co., Ltd., a Taiwanese leading supplier of motors, plans to set up an assembly plant in the country to enhance service quality and local sales, aiming to be the largest foreign brand of motors there, according to the firm.

TECO says that the Japanese market for high-efficiency motors certainly has growth potential as the Japanese government has begun stopping sales of IE2 motors to completely replace them with higher-efficiency IE3 models by 2015 as part of its energy-efficiency policy. This, market observers predict, will generate business opportunities worth about NT$230 billion in the short term.

Motivated by such scenario, TECO is therefore planning to set up a motor assembly plant in Japan, to supply a full range of high-efficiency motors with power ranging 0.75kW to 375kW, including universal motors, explosion-proof motors, aluminum-housed lightweight motors and rolled steel frame motors, coupled with efficient services, including assured speedy delivery within 7 days, to impress local customers.

TECO is confident of becoming the largest foreign motor brand in Japan in the short term, partly for its years of close partnerships with Japanese counterparts, including EBARA, Mitsubishi Electric, Yaskawa Electric and Mistu Seiki, which give it a head start to compete in that market.

In fact, TECO has been massively turning out IE3 motors since 2007, and broke into such segments in North America and Europe. Years of development have seen the supplier command dominants market shares in Australia, New Zealand, Southeast Asia and Taiwan. The company's high-efficiency motors all meet international standards, including CNS, IEC, NEMA, GB and JIS, and feature high price-to-performance ratios.

Last year, the company raked in NT$56.618 billion (about US$1.88 billion) in consolidated revenue for a 17% increase compared to 2012, with net profits of NT$4.177 billion (US$139 million), or NT$2.01 per share. (SC)