(Yicai Global) May 29 -- Haier Group has broken ground on a USD50 million production base in Tatarstan, Russia as part of the Chinese white goods maker's efforts to gain a foothold in European and Central Asian markets.
Haier will produce around 500,000 quiet and fast washing machines per year at the facility, the Qingdao based firm said in a statement to mark the start of construction, adding that there is a gap in the market for such products despite strong demand from Russian consumers.
China's household appliance makers have upped investments in Europe in recent times. Hisense Electric became the largest shareholder in Slovenia's biggest white goods maker Gorenje earlier this year, driven by efforts to spread itself over different markets.
"Corporate globalization is more than merger and acquisition," Zhou Nan, secretary general for household appliances at China Chamber of Commerce for Import and Export of Machinery and Electronic Products, told Yicai Global. "Localized production is also part and parcel of investment, these events point to the diversification in efforts taken by Chinese firms to go global.
Set for operation in July next year, Haier's new Russian factory represents the firm's second production facility in the country following the opening of a USD55 million refrigerator plant, also in Tatarstan in April 2016.
Editor: William Clegg