Japan's Daikin and Gree Electric to jointly establish a mold manufacturing company

Japan's Daikin Industries and China's air-conditioning manufacturer Zhuhai Gree Electric will establish a joint venture in mid-March 2009 to produce air-conditioning core components and molds. The two companies have basically reached an agreement in March 2008 on co-production of inverter air conditioners and market development. In order to realize the 'joint production of core components' and 'joint production of molds' in the five items of the above agreement, the two parties decided to establish a joint venture company. The newly established companies are 'Zhuhai Gree Daikin Electromechanical EquipmentThe factory is located in Zhuhai Gree Daikin Electromechanical Equipment Co., Ltd. Daikin Industry and Zhuhai Gree Electric will unite the core components of inverter household air conditioners - compressors and electrical components, and jointly produce them to reduce costs. Zhuhai Gree Daikin Precision Mould will adopt the latest mould technology of Daikin Industry and build a mould quality management system. In addition, it is planned to supply high-quality, low-cost molds to the production base of Daikin Industry by combining with the mold manufacturing experience of Gree Electric in Zhuhai. The registered capital of Zhuhai Gree Daikin Electromechanical Equipment is about 6.7 billion yen, and the Zhuhai Gree Daikin Precision Mould is about 5.2 billion yen. The investment ratios are both 49% of Daikin Industry and 51% of Zhuhai Gree Electric Appliances. Daikin Industries has the largest share in the global inverter air conditioner market. And Zhuhai Gree Electric ranks first in the non-inverter air conditioner market. The two companies aim to expand the inverter air conditioner market in areas where inverter air conditioner penetration is low by establishing new companies and improving cost competitiveness. The two companies reached five agreements in March 2008, namely (1) entrusted production of inverter household air conditioners for the Japanese market; (2) joint production of core components; (3) joint manufacturing of molds; (4) joint procurement · Joint purchase of raw materials and components; (5) Joint development of inverter household air conditioners that can be popularized in the global market. Among them (1) has been implemented. (2) and (3) will be realized through the establishment of the joint venture.