Guangdong, China, May 2nd 2017 – Midea (Midea Group Co. Ltd, SZSE 000333), a leading global player in consumer appliances, Heating, Ventilation and Air-Conditioning (HVAC) systems, Robot, and Industrial automation systems, has signed an agreement with Electrolux to establish a long-term strategic joint venture in China to promote and distribute the premium German brand AEG appliances for Chinese customers.
This partnership, majority owned by Midea, will build on the strengths of both Midea and Electrolux to explore the rapidly growing Chinese premium markets for both B2C and B2B segments: AEG brand will benefit from Electrolux’s brand expertise while Midea will provide unparalleled market access and consumer insights.
Frank Zhu, vice president of Midea Group and general manager of Midea Kitchen Appliance Division, has great expectations for the joint venture: “We are glad to establish this long-term strategic partnership with Electrolux and we have strong confidence in the AEG brand associated with German heritage and remarkable user experience. We believe that, with the joint forces of the two companies, AEG will flourish and grow into the most appealing premium brand in China.”
“We are indeed excited about this partnership with Midea. Coupled with the strengths of our esteemed organizations, this strategic joint venture will not only provide Chinese consumers with best-in-class premium product offerings and experience but further cement Electrolux’s commitment to growing our business and the AEG brand in China,” said Ken Ng, Executive Vice President and Head of Electrolux Major Appliances Asia Pacific.
The transaction will be subject to regulatory approvals.
AEG is a leading brand of premium household appliances, with innovations designed to give consumers the ultimate sense of mastery in their homes. Combining intelligent technology and responsive design to achieve exceptional results, AEG’s promise is to be “Always an idea ahead.” Founded in Germany, AEG has been pioneering ground-breaking consumer products for more than 130 years and is today part of the global Electrolux Group.