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Kelon Resumes Large-Scale Production in Asia
Aug 26, 2005
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Guangdong Kelon Electrical Holdings Co. Ltd., one of China's largest electrical appliance producers, has declared it will resume large-scaled production, following months of stoppage due to its crisis in April when top company managers were detained for alleged financial irregularities.

According to a plan, Kelon will produce 60,000 refrigerators in the period from August 20 to 31. In September, its output of refrigerators, including deep freezers and iceboxes, will reach 350,000 sets when its refrigerator production base at its Shunde headquarters resumes production. It is predicted that Kelon will restore its production capacity to the market level it had before April this year.

Kelon has formed a new management team. The company obtained startup capital mainly from the collections from its international marketing business. Foreign clients are said to have restored their confidence in Kelon and demanded continued fulfillment of orders. Suppliers have also responded positively to its decision to resume production.

Gome Chain Store will disburse money to Kelon, while Kelon has promised to deliver 20,000 units of refrigerators and 10,000 air-conditioners to Gome by the end of August. (Asia Times Online/Asia Pulse/XIC)

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