Haier and Fagor to Open Factory in Poland Through Joint Venture

BEIJING, Sept. 5, 2013 /PRNewswire/ -- 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, the world's number one Major Appliances brand*, to considerably strengthen its position in Europe. It is also part of the growth plan that the Spanish company Fagor has established for 2013-2016.

The strategically located factory in Poland, Europe's largest producer of household appliances, 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. Facilities now include a dedicated R&D centre 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. 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," stated 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.

* source: Euromonitor International Limited; retail volume sales in units based on 2012 data

About Haier

Haier is the world's leading home appliance provider, with global revenues of US$25.8 billion and profit of US$1.42 billion in 2012. Its mission is to create innovative home appliances that anticipate the fast-changing needs of consumers in 160 countries around the globe. Euromonitor International, a world leader in strategy research for consumer markets, has named Haier the number one global home appliance brand every year for the last four years. In 2012 the Boston Consulting Group named Haier one of the ten most innovative companies in the world and the most innovative company in the consumer and retail category. With global headquarters based in the Chinese city of Qingdao and regional headquarters in both Paris and New York to serve its clients in Europe and America, Haier has 5 R&D centers, 61 trading companies, 21 industrial parks with 80,000 employees worldwide.

Haier Electronics Group Co., Ltd. a subsidiary of the Haier Group, is listed on the Hong Kong Stock Exchange (HKG: 1169). By drawing on its competitive strengths in marketing, internet, logistics and services, Haier Electronics Group aims to provide an integrated and unrivalled consumer experience. Qingdao Haier Co., also a subsidiary of Haier Group, is listed on the Shanghai Stock Exchange (SHA: 600690) and focuses on driving innovation in smart home technology.

For more information please go to: http://www.haier.com

About Fagor:

The Fagor Group is the fifth largest European household manufacturer with 16.3% market share in Spain, 14.2 % in France and 7.2% in Poland and 1,167 million euro revenue in 2012. The company operates with 10 brands in 130 countries worldwide. The four pillars of its strategic plan are growth, alliances, adaptation and team. Fagor belongs to the Mondragon Corporation, the tenth Spanish business group and the largest cooperative organization worldwide.

For more information please go to: http://fagor.com