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Gree, Daikin to set up two joint ventures

By Zheng Lifei (chinadaily.com.cn)
Updated: 2009-02-18 14:14

Gree Electric Appliances, China's top air conditioner maker, and its Japanese counterpart Daikin Industries will invest 910 million yuan ($133.04 million) to set up two joint ventures to expand their cooperation, the two companies announced on Wednesday.

The ventures will produce precision moulds and compressors, the companies said.

Related readings:  Gree's net profit rises 53.5% in 2008  Gree expands capacity amid inventory reports  Air conditioner maker's inventory hits 3 b yuan

Shenzhen-listed Gree will hold a 51 percent stake in the two firms, which will be based in Zhuhai, while Daikin will retain the remaining 49 percent.

Under the agreement, Gree and Daikin will cooperate in other fields such as the procurement of raw materials.

Gree currently produces up to 1 million air conditioners a year for Daikin.