Sampo, Tatung Expand Cooperation in Compressors

Taipei, Oct. 20, 2005 (CENS)--Sampo Group will set up a strategic relationship with Tatung Co. to produce compressors, said Sampo chairman Chen Sheng-chuan.

Chen noted the cooperation with Tatung would help both sides to enlarge their customer bases because they have complimentary production advantages. Currently, Sampo's affiliate Rechi Precision Industry Co. is concentrating on making compressors for air conditioners, while Tatung has the advantage of producing compressors for refrigerators.

One of the world's top-three manufacturers of compressors for air conditioners, Rechi provides the parts for such big customers as Haier Group, mainland China's No.1 producer of home appliances. In the years to come, Rechi will focus on developing higher-value-added compressors.

Rechi predicted it would be able to ship more than seven million compressors this year. Currently the company is developing higher-value-added compressors by cooperating with downstream manufacturers, and will launch the new products sometime next year.

On the Tatung side, the company has recently launched production of compressors for refrigerators at its plant in Zhongshan, Guangdong Province, mainland China. The company is Taiwan's first manufacturer to get involved in producing compressors for refrigerators.

Tatung has set a goal of selling two million compressors for refrigerators next year, and the volume will increase to four million units in 2007.