A new joint venture company will be 51% owned by Chinese appliance maker Haier and 49% owned by Spanish appliance maker Fagor.
The joint venture has begun construction on a refrigerator plant in Wroclaw, Poland, in the Fagor Group Polish Industrial Park. The new plant is expected to have initial production capacity of 500,000 units, which could rise to 1 million units within five years. Haier and Fagor are investing EUR 56 million into the new plant.
The new plant is expected to help Haier strengthen its position in the European market. It will also facilitate Fagor's 2013-2016 growth plan.
The new plant will support Haier's "three-in-one" operational structure--bringing research and development, production, and marketing closer to its markets.
Haier already has an R&D center in Nuremberg, Germany and marketing teams based in its European headquarters in Paris and at local branches.
Haier and Fagor R&D teams will combine efforts on premium and high-end product development. Supply chain costs will be optimized with the shared operation and mutual sourcing of raw materials and components.
Production is expected to begun in the new plant in June 2014.
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