Rechi Precision Lands Big Order for Compressors From Sharp

Taipei, Feb. 23, 2009 (CENS)--Rechi Precision Co., Ltd., a globally leading compressor maker under Taiwan-based Sampo Group, a large-sized supplier of white goods, has landed a big order for compressors, valued at NT$600 million, from Sharp, making it the first Taiwanese compressor maker recognized by Japanese brands, according to company sources.

Also, Sampo has won Sharp's contract orders for set-top boxes (STBs) for high-end 42-inch and 46-inch LCD (liquid crystal display) TVs for sale in Taiwan. These orders, including those released to Rechi Precision, indicate an increasingly strong cooperation between Sampo Group and Sharp.

Eric Chen, chairman of Sampo, said that appreciation of the Japanese yen has driven Sharp to outsource a total of 250,000 inverter compressors ( key component for air conditioners) to Rechi Precision for the first time. This will help to contribute around NT$600 million to Rechi Precision's sales revenue this year and boost the firm's status in the line.

Rechi Precision, one of the world's top five compressor makers and the largest in Taiwan, has been actively engaged in development and production of inverter compressors in recent years, and closely cooperated with a Chinese air conditioner supplier TCL to jointly explore the European market.

Sharp has added its orders with Sampo for AQUOS-branded 42- and 46-inch LCD TVs for sale in Taiwan this year. The Japanese brand still tends to produce 32-and 37-inch models in Malaysia and then exports finished products to Taiwan. For mutual benefits, Sampo buys display panels from Sharp's Taiwanese plant to produce its 37-inch and above high-end LCD TVs. Plus, the two firms will also join forces to develop solar energy and lightings in the near future.