TECO Electric & Machinery Co. has acquired a 57.2% stake in Shenchang Electric for NT$548 million (US$16.9 million), marking its entry into the global transformer market. Shenchang Electric, a producer of transformers since 1971, will play a key role in TECO’s strategy to become a leader in industrial electrification. This acquisition also helps fill gaps in TECO’s product portfolio, especially in the power transformer sector.
The deal is expected to boost TECO’s revenues starting in Q4 2024. Through a strategic alliance with Indonesian SINTRA, TECO plans to expand Shenchang’s operations in Taiwan and tap into North American and Taiwanese markets, particularly in the 69–161kV power transformer business.
With Shenchang’s technical capabilities and cost advantages in Southeast Asia, TECO aims to shorten delivery times and create an efficient supply chain. The combined entity plans to capitalize on growing global demand, especially in industries such as new energy, data centers, and the Taiwan Power Grid Resilience Plan.
This acquisition aligns with TECO’s broader three-year strategy of strengthening its international presence and demonstrates the company’s aggressive push for vertical integration through mergers and acquisitions.
