Rechi Precision Co., Ltd. Has Stepped up Output Expansion Across Taiwan and China

To keep up with brisk growth, Rechi Precision Co., Ltd., world's fourth-biggest supplier of compressors for air conditioners by shipment, has stepped up  output expansion across Taiwan and China.

Recently its board approved an investment of US$20 million in the first-phase construction of a  factory in Jiujiang City in China's Jiangxi Province, to start up as early as the end of 2015 with annual output of 1.5 million compressors initially, and to rise to 6 million units.

Rechi is also involved in construction of brushless DC motor factories owned by the joint venture set up with China Steel Corp., Taiwan's biggest steelmaker by size, and Japan-based Sanyo Electric Co., Ltd., a household appliance supplier. The joint venture will operate a factory in Taiwan and China to aim to become world's third-largest supplier of brushless DC motors by 2020, when the factories  become fully operational with total annual output of 24 million units.

Also notable is that Rechi plans to set up an office in India by the end of this year to enter that vast market, where annual demand for air conditioners totals only 4.5 million units considering the  population exceeds 1.2 billion. The firm saw compressor sales in India  total 220,000 units in the first eight months of this year, surging 700% year-on-year (YoY), being motivation behind the board's decision to invest there.

For the first eight months of this year, the firm shipped 9.59 million units of various compressors, up 21.73% YoY, and posted consolidated revenue of NT$13.035 billion (US$434.5 million), growing 17.68%