Rechi Obtains Orders to Keep Production Lines Busy Through 2012

Taipei, Aug. 15, 2011 (CENS)--Thanks to orders from China's top-three air-conditioner manufacturers, including Midea, Glee and Haier, Rechi Precision Industry Co., Taiwan's leading manufacturer of compressors, has seen orders sufficient to keep its production lines busy through the end of 2012.

Because of the injection of orders from China's air-conditioner manufacturers, Rechi currently faces a 20% shortfall in production capacity. Rechi estimates it has to increase production capacity by between 20 million and 25 million sets of compressors a year to meet customers' real demand.

With booming demand for air conditioners, China is seeing shortfall in supply of air-conditioner compressors. It is said Midea has placed orders for 3.5 million compressors with Rechi for delivery in 2012. Glee and TCL has placed orders for two million and three million sets of compressors with Rechi, respectively for shipments in 2012.

REchi said it is currently capable of rolling out 11 million sets of compressors and the capacity will increase to 12.5 million up to 13 million sets in 2012.

To meet increased demand from China, Rechi has resolved to set aside NT$2 billion to set up two production lines, each with annual capacity of two million sets of compressors in Qingdao of Shandong province and Huizhou of Guangdong province.

Rechi noted the implementation of China's National 12th Five-year Plan has brought about increased demand for air conditioners and compressors.

At present, China is the world's production hub for air conditioners. Of the total global shipments of 94.94 million sets of compressors in 2010, China accounted for 40 million sets.