Midea Aims to Become China's Largest Appliance Maker
Mar 18, 2004
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Home appliance maker Midea Holding Co. Ltd., based in South China's Guangdong Province, has set its goals to become China's largest home appliance producer by 2006, according to the company. Total sales volume is expected to reach 50 billion yuan (approx. U.S. $6 billion) as sales increase by 40 percent over the next 3 years.
The company is planning to move into other industries, such as automobile manufacturing, electric power, and other infrastructure sectors. The sales volume for the new sectors is projected at 13 billion yuan (approx. $1.6 billion) by 2006.
Midea also said it is also planning to develop into a well-integrated international corporation, which will include four to five industrial groups and five to six listed companies. Export volumes by the target date are expected to reach U.S. $1.5 billion, of which 40 percent will be Midea-branded products.
The company says it plans to restructure its manufacturing strategy to focus more on products that perform well and weed out the others. To realize the expansion goals, the company will likely buy or merge other companies.
Midea said it plans to invest about 2.2 billion yuan (approx. $26.6 million) this year, of which 1 billion yuan (approx. $12.1 million) will be put into the proposed new sectors. Last year, the company signed an agreement with the local government of Kunming, capital of Southwest China's Yunnan Province, to invest 2 billion yuan (approx. $241 million) in an automobile project. (China Daily)
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