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Rechi to Kick Off BLDC Motor Production in Taiwan, China in Q3, 2014

2014/01/08 | By Quincy Liang

Rechi Precision Co., Ltd., a major Taiwanese maker of compressors, announced that it is targeting the shipment of a record number of more than 13 million compressors this year, 8% to 10% more than 2013.

The company also reported that it will kick off mass production of brushless DC (BLDC) motors at its factories in Pingtung, southern Taiwan and Jiujiang, in China's Jiangxi Province, in the third quarter of the year.

Rechi said that it expected to ship 12 million compressors in 2013, and is optimistic about sales in 2014 thanks to optimism about the global air-conditioning market.

In the first 11 months of last year the company sold 11.08 million air-conditioning compressors, up 11.8% from the same period a year earlier; and had accumulated consolidated revenues of NT$14.92 billion (US$497.3 million), a 7.1% year-on-year increase.

The compressor maker supplies many major home-appliance vendors in Taiwan and China, including Haier, Midea, Gree, Sharp, Sampo, Tatung, and Herman. To lower its operating risk, Rechi tries not to put all of its eggs into one basket but to balance shipments to different customers.

The company expects its compressor shipments for 2014 to hit the 100 million mark in July, when it plans to celebrate the new milestone at its Chinese factory in Qingdao, Shangdong Province.

Rechi is currently the fourth-largest air-conditioner compressor maker in the world, with factories in both Taiwan and China (Guangdong and Shangdong Province). The company aims to leap into the world's top-three, and is scheduled to expand the annual production capacity at its Jiujiang factory to six million units.

Company officials reported that they have poured about NT$3.2 billion (US$106.7 million) into the BLDC motor business, which is expected to become the major driver of growth for the company. The maker noted that annual global demand for air-conditioner compressors is around 100 million units, and the market is full and matured. However, the demand for BLDC motors will reach several hundred million units per year.

The company has forged an alliance with Taiwan's largest steel maker, the China Steel Corp. (CSC), which will develop and supply high-quality materials for BLDC motors.