(Yicai Global) March 22 -- Hefei Meiling Co. [SHE:000521] is planning to set up a joint venture through a strategic partnership with Italy's leading electrical appliance manufacturer Candy Hoover Group S.R. and Candy S.p.A. The Chinese company will hold a controlling interest in the venture.
The joint venture will specialize in washing machines – front-loading washer research, development and sales, focusing on the development and sales of Meiling and Candy front-loading and top-loading washing machines and washer dryers specially designed for the Chinese market, Meiling said yesterday.
The Italian manufacturer is the inventor of the front-loading washing machine, it said.
Under the strategic partnership, the new venture will cooperate with Candy's existing Chinese joint venture, Jinling Electric Appliance Co., as its sole supplier of front-loading washer, the statement added.
Public information shows Jingling Electric Appliance is a domestic washing machine producer jointly established by Candy Hoover Group and the Jiangmen washing machine factory of Jingling Group Co.
The two companies will also launch strategic cooperation on refrigerator and freezer businesses, with Meiling to be named as Candy's sole supplier of refrigerator and freezer products, which will help with its business expansion in foreign markets.
The announcement did not elaborate on the financial details of the deal.
Hefei Meiling is a domestic appliance manufacturer specializing in refrigerators and freezers, controlled by Sichuan Changhong Electric Co. [SHA:600839], a leader in China's TV sets industry.