Household Items News
- Arcelik buys Chinese washing machine maker
Date: 31-Jul-2007 Sources: (Shenzhen Daily)
LEADING Turkish household appliance maker Arcelik said yesterday it had bought a Chinese washing machine manufacturer as part of its strategy to expand in the country.
Arcelik is to pay 60 million yuan (US$8 million) for Changzhou Casa Shinco Electrical Appliances Co. Ltd., which owns a factory with an annual capacity of 200,000 washing machines 150 kilometers from Shanghai. The companies signed the accord Saturday and the sale is expected to be completed within two months depending on approval from Chinese authorities, it said in a statement to the Istanbul Stock Exchange.
Arcelik has been present in the Chinese market for more than a year through exports from Turkey.
'With this investment there will be an increase in our pace of growth in the Chinese market, which has an important place in our growth strategy,' the statement said.
The company said it will continue to sell its products, in particular dishwashers, in China via exports from Turkey.
It said the investment is also part of its plans to grow in North America and the Asia-Pacific region.
Arcelik is one of the biggest white goods maker in Europe and also makes various consumer electronics. Its net profit jumped 25 percent to 324 million lira (US$250 million) in 2006.
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