Hitachi of Japan to Produce Commercial Compressors in Taiwan

Taipei, Jan. 14, 2009 (CENS)--Hitachi Corp. of Japan will be relying Taiwan as its global production center for commercial inverter compressors, said Hitachi Taiwan. Japan's largest electric-machinery conglomerate, Hitachi aims to produce such inverter compressors in Taiwan as part of its global industrial division-of-labor.

The company will invest NT$600 million (US$18.18 million) in the first stage of such production project in Taiwan, eventually investing a total of NT$1.8 billion (US$54.54 million) to achieve an annual capacity of 300,000 units on the island.

Beginning from January, Hitachi will begin mass production of such compressors in Taiwan at an annual output of 100,000 units, 60% of which will be shipped back to Japan with remainder going to the Hitachi air-conditioner factories in Europe, mainland China and Southeast Asia.

Hitachi sold 250,000 units of household air conditioners in 2008, making it the largest brand in Taiwan.

The company noted annual output of household air conditioners has to reach between 500,000 and one million units to achieve economy of scale. Hitachi bases the production of household air conditioners in Japan but commercial air conditioners in Taiwan.