Taiwan-based Teco Electric & Machinery Co., Ltd., a supplier of motors and household appliances, expects to continue gaining steam from its wind turbine business, as its new factory of such products in Hunan Province, central China, will start up at the end of October to tap China's wind power market.
Teco indicates that the wind turbine factory occupies over 36,000 square meters in Chenzhou, a city in southeast Hunan, and will mainly produce nacelles and hubs, as well as wind turbine assembly, with blades and towers to be outsourced from local contract suppliers to achieve optimum production efficiency.
Teco is building the factory largely because the local government in Chenzhou invited bids for wind turbines for its planned wind farm, which calls for 300 units to achieve annual installed capacity of 600 megawatts. Being one of the winning contractors, Teco will supply 15 units initially and take advantage of the deal to further boost presence in the Chinese market for wind power.
Of around NT$2 billion (US$66.67 million), the bid is the biggest for Teco since setting up its wind turbine business to mark its entry to the market.
Teco reported consolidated revenue of NT$27.774 billion (US$925.8 million) for H1, 2014, with net profits of NT$2.331 billion (US$77.7 million) and EPS (earnings per share) of NT$1.18, exceeding market expectations, with institutional investors predicting the company to finish 2014 with better performance than in 2013, when its consolidated revenue and net profits totaled NT$56.619 billion (US$1.887 billion) and NT$3.759 billion (US$125.3 million), respectively, along with EPS of NT$2.01.
Source:
http://www.cens.com/cens/html/en/news/news_inner_47291.html
