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Guangdong Special: Midea acquires Egyptian supplier

By Zhan Lisheng (China Daily)
Updated: 2010-10-27 08:09

Midea sales person describes the company's new products to reporters from 18 Asian media outlets.

Foshan-based Midea Group, one of China's leading household appliance suppliers, recently bought a 32.5 percent stake in Miraco, a refrigerator and air conditioner supplier in Egypt.

The acquisition cost Midea $57.48 million, which makes it the Egyptian company's second-largest shareholder.

Midea now has three overseas manufacturing bases, with two located in Vietnam and Belarus.

Its base in Egypt is expected to make markets in the Middle East, Africa and Southern Europe more accessible.

"With overseas production bases in operation, as well as 30-odd subsidiaries in major markets abroad, Midea expects to strengthen its presence in the global market," said Wang Zhengang, vice-president of Midea Living Appliances Group.

Wang also noted the company anticipates annual overseas sales revenues of more than $10 billion in the next five years.

Midea's overseas sales revenue is expected to surpass $5 billion this year, up from $3.4 billion last year and around $200 million in 2001.

"Overseas expansion is an integral part of the company's strategy to achieve an annual gross sales revenue of 200 billion yuan in the next five years," said Midea representatives.

Officials with the group hope business turnover will reach 110 billion yuan this year, compared to 95 billion yuan in 2009.

In addition to Midea, the industrial town of Foshan in Guangdong province is home to several rapidly growing household appliance brands.

Development is largely centered in the city's Shunde district, where an industrial design park is in operation.

More than 50 globally renowned design firms including Reddot from Germany, G02 Units from South Korea, Toshiyuki Kita from Japan and Bill Design from Hong Kong, have opened their doors in the park since February of last year.

The firms have already submitted more than 1,000 pieces of design work and applied for more than 200 patents.

According to an official, industrial output of the design park has exceeded 100 million yuan, which promotes more than 10 billion yuan in economic development.

(China Daily 10/27/2010 page5)