Wed, Aug 27, 2014 - Page 13 News List

Teco eyes sector dominance in China

POWER UP:Beijing’s efficiency regulations have increased demand for the industrial motor firm’s products, with potential sales of NT$3.6 billion after 2016, an official said

By Camaron Kao  /  Staff reporter

Teco Electric & Machinery Co (東元電機), which makes industrial motors and home appliances, yesterday said that it aims to more than double its shipments of medium and large industrial motors in China by the end of 2016 to become the No. 1 maker in the segment in the country.

The company currently makes more than 1,000 medium and large industrial motors a month in China, and the company aims to raise the shipments to 3,000 a month by the end of 2016, an official of the company, who declined to be named, told reporters on the sidelines of this year’s TECO Green Tech Contest yesterday.

With each industrial motor priced at about NT$100,000, the company aims to raise sales of the industrial motors in China to NT$3.6 billion (US$120.2 million) a year after 2016, he said.

The official said the shipment increase is to satisfy rising demand in China created by the Chinese government’s new IE3 premium efficiency requirement for industrial motors, starting in 2016.

Teco will sell its industrial motors along with its variable-frequency drives, the official said, adding that the sales package is a means to help it expand its market in China more rapidly.

Sales of industrial motors account for between 50 and 60 percent of Teco’s annual revenue, the company said.

From January through last month, Teco posted revenue of NT$32.58 million, down 1.77 percent from NT$33.16 million the previous year, according to the company’s filing with the Taiwan Stock Exchange.

The official said Teco aims to post a revenue increase this year from NT$56.64 billion last year.

Teco plans to ship 28 units of 2 megawatt wind turbines to China-based electricity provider China General Nuclear Power Group (CGN, 中國廣東核電集團) for setting up a wind farm in Hunan, China, starting at the end of next month, Teco vice president George Lien (連昭志) said.

Lien said a wind turbine is priced at about NT$70 million.

The company is also interested in participating in the construction of offshore wind farms in Akita, Japan, and it might form partnerships with Japanese companies, along with banks in Taiwan that are interested in the project.

The company’s profit rose 25.27 percent to NT$2.33 billion, or NT$1.18 per share, in the first half of this year, up from NT$1.86 billion, or NT$1.01 per share, a year ago, the filing said.

The profit growth was because Teco sold real estate to Unity Opto Technology Co (東貝光電), which makes LED products, last quarter and booked income of NT$850 million, it said, adding that Teco will strive to post higher profit this year than the NT$3.76 billion last year.

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