Joint Venture Investment Exceeds 900 million RMB and Redraws Domestic and International White Goods Map
QINGDAO, China, April 29 /Xinhua-PRNewswire/ -- The world’s largest white goods manufacturer, Whirlpool Corporation, and China’s technology and innovation-oriented Hisense Group jointly announced in Qingdao, China today, that “both sides will form a new joint venture to R&D and manufacture
high-end washing machines and refrigerator products for Chinese and global consumers. Whirlpool Corp. Chairman and CEO Jeff Fettig and Hisense Group Chairman Zhou Houjian attended the signing ceremony and answered questions for the media that attended the event.
(Photo: http://www.prnasia.com/sa/200804291834.jpg )
The reporters were told the joint venture investment is expected to exceed 900 million RMB; the two sides will each control 50% shares. Hisense and Whirlpool will have the same management responsibility in the new company. The new company will research, develop and manufacture high-end washing machines and refrigerator products for two famous brands: Hisense and Whirlpool, which will supply both international and domestic markets. As the global market competition increasingly expands, the world household appliance industry is facing a new pattern. Under such circumstances, Hisense and Whirlpool choose a JV in order to enhance their competitive edge in the global marketplace including the ever-growing domestic China market. In addition, this will provide a cooperative advantage in capital, R&D, manufacturing, procurement and global marketing. It created a new precedent for white goods enterprises in the international business area. The new JV will greatly promote the global market position for both sides and achieve greater strategic dominance.
During the press conference, Whirlpool Corp. Chairman and CEO Jeff Fettig said, “China is one of Whirlpool’s most important markets, and Hisense is one of China’s most competitive and fast-growing white goods manufacturers. The JV not only will have a profound effect on the needs of Chinese consumers, but will also boast its technology orientation; steady management and advanced inverter, energy-saving technological advantage. We believe partnering with Hisense is a wise strategic move.”
Hisense Group Chairman Zhou Houjian also praised Whirlpool stating, “Whirlpool is the world’s leading household appliance maker and distributor, it also has a nearly 100 year history as an enterprise. Its bold innovative technology, leading designs and excellent product quality happens to be similar to the goals we strive for at Hisense. We consistently advocate the ideal of high technology and product quality. Their continuous improvement in operational efficiency and business management is something we at Hisense will study and emulate. We believe this cooperation will strengthen both sides in technology and production by increasing the integration and optimization of products and resources. The true winner in this venture will be the consumer, who will benefit from purchasing the world’s most advanced products and services.”
Huo Dufang, chairman of the Chinese Household Appliance Association who also witnessed this important event, stated, “The combination of Hisense and Whirlpool plays an important role in sustained development for both sides, and will bring quality products to the global consumers. We expect to see Chinese household appliance enterprises, R&D and manufacturing capabilities reach the international benchmark for excellence.”
Technology, manufacturing, procurement, business philosophy, and market channels complement each other and are the key components that facilitated this cooperation.
Whirlpool and Hisense boast world leading advanced technology in two leading products in the joint venture company. Throughout nearly 100 years of history, Whirlpool has mastered the front loading, top loading and stir-washing technology for washing machines. Whirlpool boasts more than 1000 patents for washing machine technology. Recently they introduced an ultra-thin, large capacity, front-loading washing machine, perfected at their cutting-edge R&D center, achieving the highest level of National Energy Efficiency. The Hisense refrigerator became the industry’s fastest growing refrigerator brand due to its vector frequency and other world leading technology, moreover, it exclusively obtained “The Energy Star Award” for its production and sales, ranked NO. 1 for 11 consecutive years.
Production and technology will ultimately determine the success of an enterprise. The venture is a mutual recognition and merger of two successful business paths. Hisense R&D centers in Europe, South Africa, and the US mirror their market leading technology at their domestic R&D centers located in Qingdao, Beijing, Shunde and Shenzhen. With the global R&D footprint, Hisense is able to provide a commitment to 24 hours of uninterrupted research and development. Meanwhile, Whirlpool has more than 25 R&D centers worldwide, including world class R&D centers established in Beijing, Shanghai, Shunde, etc. The two sides will certainly create a series of innovative household appliances with leading designs and excellent quality, to sustain a win-win outcome for both sides and strengthen their global competitiveness.
The remarkable combination will provide Chinese consumers with
leading-edge Whirlpool products, and will enhance the global competitiveness for Hisense products in the global marketplace. Given the ever-changing global environment, it’s crucial to seize the high ground in technological initiatives. It is reported that the new company will bring together advanced technology dedicated to high-end washing machines and refrigerators, providing highly advanced R&D and manufacturing techniques. The planned capacity is for up to 2 million washing machines, and over 1 million high-end refrigerators, annually. In addition to providing smooth operations and further expansion of the domestic and international markets, both sides will explore opportunities to enter new industrial fields.
Obviously, for Whirlpool, the joint venture allows it to fully use Chinese manufacturing and procurement advantage to achieve product innovation and to upgrade their global platform. For Hisense, following its Kelon acquisition, the joint venture will also enhance its global distribution of high-end white goods.
For more information, please contact:
Tao Tian
Hisense Group
Tel: +86-532-8087-8052
Email: taotian@hisense.com
