Sanyo, Haier to link up in fridge business

30 Oct, 2006

Japan's Sanyo Electric Co Ltd said on Friday it will link up with China's Haier Group in the refrigerator business in a bid to turn around its loss-making operations and will sell its Thai refrigerator plant to Haier. The two companies will set up a joint venture in Japan in December to take over Sanyo's refrigerator design and development operations.
Sanyo will also sell a 80 percent stake in its flagship refrigerator plant in Thailand, which makes about 1 million units a year, and will procure the products from Haier on an original equipment manufacturing (OEM) basis. "In the next business year, we will not post a loss from the refrigerator business any more," senior vice president Mitsuru Honma told a news conference. In OEM agreements, suppliers manufacture products under the names of re-sellers.

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