The TECO story
Founded in 1956, TECO Electric & Machinery Co., Ltd. started as a motor production company and has grown into a major conglomerate with a presence in heavy electric equipment, home appliances, IT, communications, electronic components, and more. This expansive group also engages in infrastructural engineering, financial investment, dining, and services.
TECO-Westinghouse, a pivotal branch, is a global leader in manufacturing electric motors and generators, serving industries from petrochemicals to mining and metals.
Despite TECO's broad expertise and illustrious history, the company is at a critical juncture. Ever more sprawling and less synergistic, the Board has chosen to focus on its low margin-high risk construction business and the low volume bus and commercial EV market.
The Problem
The financial performance of several TECO subsidiaries has deteriorated significantly since 2021. TECO's 21-23 revenue growth is less than 50% of what was promised and its total shareholder return has substantially underperformed its Taiwanese peers. Several foreign investors have liquidated their positions in TECO; in at least one case citing its lack of focus.
The Solution
TECO is a traditional business in a period of rapid technological change. The AI revolution poses existential challenges for many businesses, including TECO, but presents huge opportunities to those able to be adaptive, nimble and focused.
To adapt, TECO needs start on a journey of simplifying its business structure, focusing its capital and resources on its high growth potential businesses, and investing substantially in its technology stack. R&D spend must be directed the markets that are most likely to be fruitful - particularly in the construction of next generation motors and much closer engagement with the consumer EV market.
In order to deliver a program of growth TECO's Board must change. The skills, experience and outlook of the current directors guarantees at low growth future. A new Board will bring the ability to evaluate current strategy, and reset for focused, high growth future.
TECO statistics
~100
Global affiliate companies
40+
Operating countries
NTD 59.4B
Revenue 2023
14,000
Global employees
TECO Group Businesses
A diverse and sprawling portfolio
Green Mechatronic Solutions
Engaged in research, design, manufacture and sales of electrical equipment and contracting construction of transportation and electricity.
Intelligence Energy
Manufacture and sale of motors and generators
Air and Intelligent Life
Manufacture and sales of home appliances, as well as data processing and logistics services.
EV Products
Power systems for light commercial vehicles and buses.