Compressor Maker Rechi's Production Line Full in December

Taipei, Dec.18, 2012 (CENs)--Rechi Precision Co. Ltd., a maker of compressor in Taiwan, has fully-loaded orders in December driven by peak season in export. A manager of the firm said that most of the firm's production lines in Huizhou and Qingdao, China will not shut down over the New Year holiday.

As household appliance vendors Haier Group, Midea Group, and Gree Electric Appliances Inc. were busy clearing inventories of air conditioners in June and July, Rechi saw sales decline in that period, which has started to gradually rebound throughout September due to export orders.

Rechi's combined sales in November totaled 974,300 units, down 3.32% year on year (YoY) but up 21.59% month on month (MoM), with NT$1.191 billion (US$39.7 million) in revenues, decreasing 16.53% YoY. The firm saw combined sales in the first 11 months decline 6.49% YoY to 991,630 units, with cross-strait consolidated revenues down 9.38% YoY to NT$13.931 billion (US$464.37 million).

A manager of Rechi pointed out that the firm will try hard to reach its sales goal of 11 million compressors in 2012, and more than 10% YoY growth in 2013.

Rechi's manager noted that buyers ask for faster deliveries than before, only companies with sufficient economy of scale can meet such demand. Currently, Rechi's annual production capacity in China and Taiwan reaches 14 million units.

The firm mainly exports to Europe and the U.S., with shipments of dryer compressor in 2012 estimated to increase 30~40% YoY to one million units and hit 25% YoY growth in 2013. The firm's exports to the U.S. are mainly for air conditioners, dehumidifiers, and compressors, only a third of which exported directly, while the rest via household appliance vendors in China.