Mitsubishi JV to Develop Upscale Refrigerators For Chinese Market
Jul 25, 2013
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A new joint venture between Mitsubishi Electric Corp. (Tokyo) and Chinese appliance producer Hefei Kinghome Electrical Co., Ltd. will develop large refrigerators for increasingly affluent consumers in the Chinese appliance market.
Mitsubishi Electric intends to expand its refrigerator market in China by leveraging its proprietary technologies for energy-saving, high-capacity refrigerators.
The new venture, Hefei Kinghome Mitsubishi Electric Home Appliances Technology Development Co., Ltd., will begin operations on August 9, 2013 with 24 employees. The JV will be positioned as a research and development center focused on accelerating development of value-added products meeting specific demands in the Chinese market. Hefei Kinghome Electrical will manufacture and sell the refrigerators.
Mitsubishi noted that the growing affluence of some Chinese consumers, along with various stimulus programs offered by the government, are driving growth in demand for higher-capacity and higher-performance refrigerators, include multi-door models, which are expected to start selling briskly.
The JV's general manager will be Junichi Yokoyama. The JV will be capitalized with USD $6.3 million. The new center will be based in the Economic & Technology Zone, Hefei, Anhui, China.
Mitsubishi Electric and Hefei Kinghome Electrical will each own 50% of the new venture.
Hefei Kinghome Electrical has been manufacturing and selling refrigerators in China since 2006, and currently has about 2,200 employees. The company operates under General Manager Xuebin He.
Mitsubishi Electric is a global producer of home appliances and air-conditioning, as well as consumer electronics, information processing and communications equipment, industrial technology, and other industries.
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