Friday September 6th, 2013 - 11:54AM
Haier and Fagor have announced a cooperation agreement to establish a joint venture company, with the aim of setting an industry benchmark. The joint venture, to be held at 51% by Haier and 49% by Fagor, will oversee the construction of a new refrigerator production factory in Wroclaw, Poland. Company leaders from Haier and Fagor announced the decision today at a press conference held at the IFA trade fair in Berlin, Germany.
Annual production capacity at the new site, located at the Fagor Group Polish Industrial Park, is forecast to reach 500,000 units, rising to 1 million units within five years. With a co-investment of 56 million euros, this agreement will enable Haier to strengthen its position in Europe, according to a statement released by the companies. It is also part of the growth plan that the Spanish company Fagor has established for 2013-2016.
The strategically located factory in Poland will be a new pillar supporting Haier's "Three-in-One" operational structure and enable the Group to bring its research and development, production and marketing closer to its sales territory, the company said in its statement. Facilities now include a dedicated R&D center in Nuremberg, Germany, manufacturing with the opening of the new plant in Poland and marketing teams based in the European headquarters in Paris as well as in local branches.
Both Haier and Fagor will benefit from the synergy created by this joint venture, according to the companies. R&D teams will combine efforts on premium and high-end product development, ensuring a double quality control. Supply chain costs will be optimised thanks to the shared factory location and mutual sourcing of raw materials and components.
Rene Aubertin, CEO of Haier Europe, said, "This long-term partnership demonstrates Haier's strong ambitions in Europe. Fagor is a key player in the white goods industry and a leader in technical innovations. We are delighted to combine our strengths with such a reputable partner to deliver outstanding products to our customers."
"This agreement will strengthen Fagor's international brand image and reinforce our business growth in key markets," said Sergio Trevino, CEO of Fagor Group. "We are delighted to collaborate with a global leader such as Haier to improve our competitive positioning in both the European and Asian regions," he concluded.
The construction of the refrigerator factory is due to begin in September 2013 and production is expected by June 2014.