Teco Electric & Machinery Co (東元電機), one of Taiwan’s leading suppliers of electric motors, yesterday announced plans to acquire local transformer maker Shenchang Electric Co (伸昌電機) for not more than NT$550 million (US$17.21 million).
The deal — which also includes forming a strategic alliance with Shenchang’s Indonesian affiliate PT Sintra Sinarindo Elektrik — is expected to begin contributing revenue to Teco Electric next quarter, the company said in a statement.
The deal comes as Teco aims to pursue global transformer business, especially in North America, and grab electromechanical business opportunities in Indonesia.
Photo courtesy of Teco Electric & Machinery Co
At a media gathering last month, Teco chairman Morris Li (利明献) unveiled the company’s three-year development plan that focuses on high-potential businesses, including green energy, power conservation, carbon reduction and electrification, as the company targets becoming a comprehensive solution provider.
In yesterday’s statement, Li said that the deal would help improve the company’s electrification product portfolio and achieve its goal of becoming an “industrial electrification integrator.”
Established in 1971, Shenchang primarily produces distribution transformers and has been active in the Indonesian market since 1996, serving companies such as Taiwan Power Co (Taipower, 台電), Formosa Plastics Group (台塑集團), PT PLN (Persero) and Siemens AG, Teco said.
Under the terms of the deal, Teco plans to acquire a 57.2 percent stake in Shenchang to become a majority shareholder and help expand Shenchang’s manufacturing facilities in Taiwan, it said.
The companies are also eying the transformer markets in Taiwan and North America, and plan to broaden their product portfolio to 69 kilovolt (kV) to 161kV power transformers in the near term, Teco added.
Moreover, the companies aim to provide green solutions amid the growing trend of climate awareness, rising demand for data centers and significant infrastructure upgrades in the US, Teco said.
The initial focus would be on meeting the enormous demand for distribution transformers in North America; in Taiwan, particularly in the industrial sector; for new energy projects and data centers; and for Taipower projects that aim to enhance the state utility’s power grid and operational resilience, it said.
China’s economic planning agency yesterday outlined details of measures aimed at boosting the economy, but refrained from major spending initiatives. The piecemeal nature of the plans announced yesterday appeared to disappoint investors who were hoping for bolder moves, and the Shanghai Composite Index gave up a 10 percent initial gain as markets reopened after a weeklong holiday to end 4.59 percent higher, while Hong Kong’s Hang Seng Index dived 9.41 percent. Chinese National Development and Reform Commission Chairman Zheng Shanjie (鄭珊潔) said the government would frontload 100 billion yuan (US$14.2 billion) in spending from the government’s budget for next year in addition
Sales RecORD: Hon Hai’s consolidated sales rose by about 20 percent last quarter, while Largan, another Apple supplier, saw quarterly sales increase by 17 percent IPhone assembler Hon Hai Precision Industry Co (鴻海精密) on Saturday reported its highest-ever quarterly sales for the third quarter on the back of solid global demand for artificial intelligence (AI) servers. Hon Hai, also known as Foxconn Technology Group (富士康科技集團) globally, said it posted NT$1.85 trillion (US$57.93 billion) in consolidated sales in the July-to-September quarter, up 19.46 percent from the previous quarter and up 20.15 percent from a year earlier. The figure beat the previous third-quarter high of NT$1.74 trillion recorded in 2022, company data showed. Due to rising demand for AI, Hon Hai said its cloud and networking division enjoyed strong sales
TECH JUGGERNAUT: TSMC shares have more than doubled since ChatGPT’s launch in late 2022, as demand for cutting-edge artificial intelligence chips remains high Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted a better-than-expected 39 percent rise in quarterly revenue, assuaging concerns that artificial intelligence (AI) hardware spending is beginning to taper off. The main chipmaker for Nvidia Corp and Apple Inc reported third-quarter sales of NT$759.69 billion (US$23.6 billion), compared with the average analyst projection of NT$748 billion. For last month alone, TSMC reported revenue jumped 39.6 percent year-on-year to NT$251.87 billion. Taiwan’s largest company is to disclose its full third-quarter earnings on Thursday next week and update its outlook. Hsinchu-based TSMC produces the cutting-edge chips needed to train AI. The company now makes more
Protectionism: US trade chief Katherine Tai said the hikes would help to counter unfair trade practices from China, while boosting domestic clean energy investments US Trade Representative Katherine Tai (戴琪) defended stiff tariff hikes against countries such as China, saying that paired with investment, they were a “legitimate and constructive” tool for reinvigorating domestic industries. Tai’s comments come a week after sharp tariff increases on Chinese electric vehicles (EVs), EV batteries and solar cells took effect — with levies down the line on other products also recently finalized. The latest moves targeting US$18 billion in Chinese goods come weeks before next month’s US presidential election, with Democrats and Republicans pushing a hard line on China as competition between Washington and Beijing intensifies. In an interview on Thursday
RSS