Rechi's Cumulative Compressor Sales to Reach 100 M. Units in June

Following decades of development, Rechi Precision Co., Ltd., Taiwan's largest manufacturer of compressors mainly for air conditioners by shipment, is very likely to see cumulative sales recorded since its establishment in 1989 reach 100 million units in June, when a celebration will be held at the firm's Qingdao plant.

Rechi, the world's fourth-largest compressor supplier, runs three factories in Taiwan and China's Guangdong and Shandong. In 2013, it shipped 12.36 million compressors to rake in NT$16.472 billion (about US$549 million) in consolidated revenue and NT$2.02 in EPS.

The firm's compressor shipment totaled 3.8619 million units in Q1, 2014, sharply up 35.58% yearly, and is estimated to exceed 13 million units for 2014 for an annual growth of nearly 10%.

Rechi emphasized that ever since founded, it has consistently diversified customer base to reduce dependence on a single client, hence boasting many globally known air conditioner vendors, including Gree, Haier, HiSENSE, TCL, Midea, Sharp and SAMPO, on its customer list.

Rechi plans to establish a new compressor production base in Jiangxi Province, southeastern China, to boost annual output by 6 million units in three years after becoming operational.

Meanwhile, the firm is considering investing NT$3.2 billion (US$106.6 million) in setting up a brushless DC motor plant in Taiwan or China as part of its business diversification strategy for long-term sustainable development. Construction of the plant is scheduled to get under way in the fourth quarter of this year, with Sharp likely to be a shareholder.

This brushless DC motor plant will attain annual output of 24 million units and generate revenue of NT$1 billion (US$33.33 million) five years after start-up. (SC)