Sampo's Affiliate Rechi to Benefit from Closer Hon Hai-Sharp Cooperation

Taipei, May 29, 2012 (CENS)--With Hon Hai Group said to expand its cooperation with Sharp to white goods, Rechi Precision Co., Ltd., a Taiwan-based supplier of compressors, is expected to receive more orders from the Japanese customer in the future, stated Eric Chen, vice chairman of Sampo Group affiliating Rechi.

After acquiring an 11% stake in Sharp to become the major shareholder, Hon Hai has planned to establish a sixth-generation plant of LTPS (low temperature poly silicon) panels in cooperation with the Japanese partner in China, while reportedly to help it manufacture LCD TVs and household appliances from refrigerators to washing machines and air conditioners for sale Southeast Asian countries.

Based on the information, Chen indicated that Sharp will mainly look to take advantage of Hon Hai's production to expand its market share in the Chinese market for white goods, given the fact that the Japanese brand vendor posts sluggish sales there presently. This, in turn, will certainly benefit his group's Rechi in the form of surging contract orders for compressors from Sharp in the near future.

In fact, Sharp has already decided to purchase around three million compressors from Rechi in the next three years, with Sampo contracted to manufacture small-capacity refrigerators and washing machines for sale in Taiwan for the time being.

The business ties between Sharp and Sampo Group can also be shown in the latter once supplying the former over 20,000 air conditioners yearly in the past, all of which were re-exported back to Japan, as well as small quantities of commercial microwave stoves and white goods going to Spain and Israel, respectively.

Chen said that compared to its hot-selling LCD TVs, Sharp's sales of air conditioners and refrigerators in Taiwan, however, still have room for improvement at present. Therefore, Chen continued, Sampo will join hands with Sharp to launch more models, such as 500-liter-above refrigerators, on the island starting at the end of this year.