The establishment of overseas plants, research and development centers and the acquisition of a number of international intelligent automation solution makers have helped boost business growth for Midea Group, a traditional home appliance maker based in Guangdong province, according to senior company executives.
Midea currently has 17 research and development centers in eight countries, with more than $2.9 billion being invested in the R&D area over the past five years, according to the company.
The company is also planning to set up more R&D centers in Austria, Germany and Singapore in the near future, aiming to make its products more locally-tailored and globally competitive.
Midea has 12 overseas plants, covering major home appliance goods and automation solution products.
"We are more willing to build joint ventures in overseas markets, especially countries and regions along the Silk Road Economic Belt and the 21st Century Maritime Silk Road," said Fang Hongbo, chairman and president of Midea Group.
Since establishing its first overseas plant in Vietnam in 2007, Midea has efficiently expanded its products in global markets over the past few years.
According to Midea's annual report, the group's overseas sales reached 64 billion yuan, accounting for nearly half of the company's total sales in 2016.
Its overseas sales revenue is expected to reach more than half of the company's total in 2017, according to the company.
"The growing market demand in emerging countries and regions, along with an improving domestic demand for smart home appliances, will help boost sales in the years ahead," Fang said.
Overseas acquisitions
Gu Yanmin, vice-president of Midea, said the overseas acquisitions had helped expand its business to new industrial areas, amid intensified competition in the domestic home appliances market.
"We are now more likely to identify ourselves as a leading technology company, not only in the area of home appliances but also in industries of heating and ventilation, robotics and automation solutions," Gu said in an interview.
In a series of recent international acquisitions, Midea, based in the manufacturing hub of Foshan, in the heart of the Pearl River Delta, took a majority of stake in German robotics manufacturer Kuka GA last year and bought more than a 50 percent stake in Israeli motion solution provider Servotronix Motion Control Ltd earlier this year.
"We have been seeking another growth path beyond home appliances, changing our business model driven by mass production at low cost to scientific and technological innovation," Gu said.
In addition to the acquisition of Kuka and Servotronix, Midea also took a large stake in Italian air conditioner maker Clivet SpA and an 80 percent stake in Japanese home appliance manufacturer Toshiba Corp's white goods business last year.
Technicians test reliability of electronic components used for their products in Foshan, Guangdong, on April 13. Shen Hong / Xinhua
