Home appliance manufacturer Galanz Group’s acquisition of the Chinese unit of United States’ white goods maker Whirlpool will help it to diversify its business, a top company official said.
“Growth, no matter what happens, along with high-quality development, will be our core strategy this year,” said Liang Zhaoxian, chairman of Galanz, during the company’s annual meeting on Sunday.
After over 200 days of antimonopoly investigation by authorities in the United States, China, Brazil, Germany, Turkey, Austria and Colombia, Galanz was given the go-ahead for the acquisition deal, according to Liang.
“The approval means all shareholders of Whirlpool China can sell their shares to Galanz. It would be a historical milestone for us,” said Liang.
Last August, the Chinese firm said that it would accept no less than 51 percent of Whirlpool China’s equity and a maximum of 61 percent, according to Liang.
“Galanz will focus on upgrading technology, brand and supply chains for business growth this year. The acquisition of Whirlpool China is part of our strategy to help diversify brands and promote sustainable business growth,” said Liang.
The acquisition, which is equal to 2.46 billion yuan ($370 million), will start on Wednesday and end on April 29. Whirlpool China’s stock price was down 6.48 percent at 7.65 yuan per share on Tuesday.
“It was not simply a cooperation between a Chinese company and a Fortune Global 500 company－Chinese home appliance makers will be more competitive in the global market as they have now developed core technologies in the self-innovative industrial chain,” said Liang.
According to Liang, Galanz plans to build two purchasing technology quality control centers in South China and East China in the near future.
“We will build a new market, bring in advanced technology, products and services to consumers in China, as well as the world,” said Liang.
Galanz, which is Whirlpool’s third-largest global supplier, intends to help Whirlpool China to improve management efficiency, enhance profitability and ensure stable development, said Liang Huiqiang, vice-chairman of Galanz.
After acquiring a combined majority stake in Japanese kitchen appliance maker Zojirushi in January last year, Galanz has been vying for more brands to diversify its business.
Teaming up with Whirlpool and Zojirushi will help Galanz to enter a rapid business expansion in the near future, according to Liang.
“Having multiple brands and diversified businesses is the future development trend for various consumer groups,” said Liang.
The Guangdong-based company has been looking for more than 10,000 workers to boost its production capacity this year, due to increased orders from overseas buyers.
After posting a 212 percent year-on-year growth in sales last year, the company is expecting overseas orders to rise by 90 percent on a yearly basis during the first quarter of this year, according to Liang.
“The production capacity of refrigerators will increase by more than 80 percent this year,” said Liang.