Rechi Precision aims for world's No.1 producer of air compressors in 2006

Taipei, April 15, 2005 (CENS)--Rechi Precision Co., Ltd., Taiwan's largest manufacturer of air compressors, is expected to attain its long-term goal as the world's No.1 producer in the field in 2006.

The firm will kick off construction of a production facility in Qingdao of Shandong province, mainland China by the end of April. With first-stage investment of NT$1 billion (US$31.74 million at US$1:NT$31.5), the new facility is designed to have an annual output of two million air compressors for air-conditioners.

Products rolled out from the Qingdao production facility will be mainly supplied to the air-conditioner producers in northern China, including Haier Group and Haihsin Group. Haier is the largest home-appliance manufacturer in the mainland.

Rechi said Haier, with operating headquarters located in Qingdao, has placed orders for two million air compressors so far this year, 500,000 units more than last year.

The major reason for Rechi to set up a production facility in Qingdao is to cope with the large-quantity demand of Haier which targets to ship 10 million air conditioners this year, surpassing the shipment goal set by major rival LG Electronics of South Korea.

Rechi noted it would invest a total of NT$3 billion (US$95.23 million) to complete the Qingdao production facility in three development stages. In every one and a half years, the company will set up a new plant there. By the end of 2009, the company would complete the establishment of three plants in Qingdao, with total output of six million air compressors per year.

To ratchet up its competitiveness, Rechi is planning to launch a new plant in Qingdao to produce scroll-type air compressors used in commercial and large-sized air conditioners.

Rechi said it would be able to produce a total of nine to 10 million up to 10 million air compressors in Taiwan and the mainland this year.

The company had combined shipments of 900,000 air compressors valued at NT$990 million (US$31.42 million) in March, up 55% and 46%, respectively from the same period of last year and both hitting all-time highs.