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Rechi to Advance Factory Construction Plan in China

2014/05/23 | By Quincy Liang

Rechi Precision Co., Ltd., a Taiwanese manufacturer of compressors mainly for air conditioners, recently reported that both its sales volume and consolidated revenue in Q1,  2014 hit record highs in company history.

The company pointed out that its monthly compressor production volume outstripped one million units in April, and the company's 2014 annual sales goal of 13 million compressors is expected to be achieved before the year-end.

To ease supply tension due to flooding orders, Rechi plans to advance a capacity expansion project, by investing NT$3 billion to NT$4 billion (US$100 million) to set up a factory in Jiujiang, Jiangxi Province of China with scheduled annual capacity of some six million compressors.

Air-conditioner compressors made by Rechi of Taiwan.
Air-conditioner compressors made by Rechi of Taiwan.

Its managers said that shipments of residential air-conditioner compressors to North America have entered a low period in March, but still higher than that year-on-year. In March, Rechi shipped about 1.31 million compressors in China, up 18.6% year-on-year (YoY), and registered consolidated revenue of NT$1.78 billion (US$59.47 million), a 12% YoY increase. Both figures are record highs in company history.

In the first quarter, Rechi's cumulative shipments totaled 3.87 million units, up 35.6% YoY, with consolidated revenue up 28.7% YoY to hit NT$5.11 billion (US$170.5 million). Both figures are also record highs for the compressor maker.

Rechi's managers said that the company's 100-millionth compressor is expected to be produced in May, earlier than originally forecast.

Sampo Group chairman S.T. Chen announced previously that Rechi, China Steel Corp. and other local investors set up a joint venture to produce brushless direct current motor (BLDC) motors in both Taiwan and China, with target annual production volume being 30 million units. To solve the problem of insufficient production capacity (currently Rechi has total capacity of some 15 million compressors from facilities in Taiwan and China), Rechi plans to soon set up a factory next to the BLDC motor venture's plant in Jiujiang.

Rechi said the factory construction plan will start by the end of 2015.