TCL Group two days ago laid the foundation for a refrigerator production base in Jimo City, the northern part of the Qingdao Industrial Park, after announcing the establishment of two joint venture companies with Toshiba Corporation last week.
TCL plans to invest nearly 100 million yuan (US$12 million) in establishing the plant, which will have an annual output of 500,000 refrigerators during its first phase. The company will target the Chinese mid-end market in Eastern and Northern China. The base will also export products overseas.
In reply to why TCL established a base so close to the Chinese home appliance giant Haier, Yuan Xincheng, vice board director and also vice CEO of Haier, explained that if TCL didn't come, other brands would.
Qingdao, famous for renowned home appliance production bases, boasts an optimum location, having complete household appliance industry chain resources and a collection of highly-qualified personnel.
"Launching the white home appliance center at Qingdao can maximize the use of research, development, procurement, production, logistics and service resources there," Yuan said.
In the coming two or three years, TCL will try to become one of the top three manufacturers of white household appliances in China, he added.