Rechi to Attain Its Goal of Shipping 13 Million Air Conditioner Compressors in 2014

Rechi Precision Co., Ltd. executives predict the company to comfortably attain its goal of shipping 13 million air conditioner compressors in 2014 due to steady shipments in the low months.

While Q3 is typically a low season, Rechi has been fortunate due to the unusually simmering summer in July, August and even September this year that has driven monthly shipment exceeding one million compressors.

August shipment hit 1.04 million systems to see the company set a milestone: the first August with shipment over one million systems and the tenth month in a row of one-million-plus unit shipped. This September, the company is projected to ship around one million compressors, compared with 960,000 systems in the same month of last year.

In Jan.-Aug. the company shipped 9.6 million compressors from factories in Taiwan and China, hence its optimism to attain the shipment goal for 2014.

Industry executives even predict the maker to ship as many as 13.5 million systems for this year with estimated consolidated revenue of NT$17 billion (US$566.6 million).

Based on past records, Rechi executives say the company's high season usually begins in October, when orders from North America increase. Last year, its high season began late September that enabled shipment of 3.5 million systems in Q4.

Planning to boost production capacity to 20 million systems yearly in seven years, the company will invest in NT$4 billion (US$133.3 million) to build a  factory in Jiujiang in the northeast Chinese province of Jiangxi to add six million compressors yearly to output. The company operates a factory each in Taiwan, Huizhou and Qindao.

Its executives have not decided whether to independently fund the investment or with partners, also revealing having canceled a plan proposed by Chinese household-appliance maker, the TCL Group, to build a factory in Wuhan, China. (KL) 

Rechi's A/C Compressor Shipments (Jan.-Aug.)