The deal between Carrier and Guangdong Midea Electric Appliances will lead to the formation of a new air-conditioning manufacturing company called Foshan Midea Carrier Air Conditioning Equipment in Foshan City, Guangdong Province, in south east China.
Midea will hold a 60 percent stake and Carrier will hold the minority stake in the joint venture which will produce residential and light commercial duct-free split air-conditioning systems exclusively for Carrier for the global market.
The partners expect the manufacturing facility to be fully operational by the end of the year.
Geraud Darnis, chairman and president of Carrier, said: “The Midea-Carrier joint venture is a milestone in Carrier’s long and successful relationship with Midea,
“This venture brings together the strengths of two leaders in the global air-conditioning industry.”
Midea is the largest exporter and leading manufacturer for air-conditioning in China - the world’s second largest and rapidly growing air-conditioning market.
Midea and Carrier will invest £14.6mill in registered capital to establish the new company.
Fang Hongbo, president of Midea Electric, said, “Our new joint venture is aimed to be a stable, long-term platform of capital, product, technical and brand cooperation and alliance between Midea and Carrier.
“We will take full advantage of this opportunity to draw on manufacturing, technical and management experience from both parties to accelerate the globalization of the new venture.”
Carrier already has a significant presence in China with seven factories, more than 100 sales and service offices, 2,500 employees and a state-of-the-art global research and design centre in Shanghai that opened in December 2006.
Mr Darnis said: 'Carrier has a rich history in China and this investment demonstrates our ongoing commitment to China and its Heating, Ventilation, Air Conditioning and Refrigeration (HVACR) markets.”