Another Step of the Global Strategy Cooperation by the Two AC Giants

On May 8, inside the Fushan Industrial Zone in Doumen District of Zhuhai City, foundation laying ceremony for the joint venture project for inverter compressor and electric controller by the two AC giants?Gree and Daikin?was held.

This is another substantiality step by these strategy partners.

In February, Gree and Daikin signed global strategy cooperation agreement in Zhuhai. This agreement involved cooperation in several fields like purchase on raw material, R&D of core parts and components, technical improvement on AC units, which specifically includes: Daikin’s entrustment to Gree to produce inverter driven RAC for Japanese market, establishment of joint venture factory to produce inverter compressor, electric controller and precise molds, joint purchase of raw material and components for AC, and the joint development of new inverter RAC that is more eco-friendly for global market. The total investment for the two joint venture factories mentioned reached 910 million RMB. These factories are controlled by Gree.

After more than two months’ preparation, factory for motor began construction on May 8 and it is expected to begin commissioning in March 2010. This factory that invested 510 million RMB is expected to create production value of 1.2 billion RMB after completed and offer 1200 job vacancies.

Another joint venture project?precise mold factory will begin construction in a near future.

People inside the industry said, as a factory that produce core component for inverter driven AC, when it reached normal production capacity, it would play an important role on improving the technology of Gree’s inverter AC as well as lowing production cost.