Haier and Fagor have announced a groundbreaking cooperation agreement to form a joint venture, aiming to set a new industry standard. This joint venture, with Haier holding a 51% stake and Fagor 49%, will oversee the construction, utilization, and development of a new refrigerator production facility in Wroclaw, Poland. Company leaders unveiled this strategic decision at a press conference during the IFA trade fair in Berlin, Germany.
Major Production Capacity
The new factory, located at the Fagor Group Polish Industrial Park, will initially have an annual production capacity of 500,000 units, with plans to double to 1 million units within five years. The joint venture involves an initial co-investment of €56 million, positioning Haier, the world’s leading Major Appliances brand, to significantly bolster its presence in Europe. Haier aims to be among the top 5 brands in free-standing goods by 2016, aligning with Fagor’s growth strategy for 2013-2016.
Strategic European Location
Poland, as Europe’s largest producer of household appliances, offers a strategic location for this new factory. The facility will serve as a key pillar in Haier’s “Three-in-One” operational structure, integrating research and development, production, and marketing within its sales territory. This includes a dedicated R&D center in Nuremberg, Germany, manufacturing facilities in Poland and Italy, and marketing teams based in the European headquarters in Paris and local branches.
Synergy and Expertise
The joint venture will leverage the combined expertise of Haier and Fagor’s R&D and manufacturing teams to develop cutting-edge products. This collaboration will maximize economies of scale through shared production volumes and joint purchasing of components and raw materials.
Leadership Statements
René Aubertin, CEO of Haier Europe, emphasized the significance of this partnership: “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 industrial expertise. We are delighted to combine our strengths to deliver outstanding products to customers.”
Sergio Treviño, CEO of Fagor Group, added: “This agreement will strengthen the international scope of our company and our ability to form international business alliances to reinforce growth in our key markets. We are delighted to collaborate with a global leader like Haier to improve our competitive position in both the European market and the Asian region.”
Timeline and Future Prospects
Construction of the new refrigerator factory is set to begin in September 2013, with production expected to commence by June 2014. This initiative marks a significant step forward for both companies in enhancing their market positions and delivering high-quality products to a global customer base.
