Leading Turkish household appliance maker Arcelik (Beko) said today it had bought a Chinese washing machine manufacturer as part of it strategy to expand in the region.
Arcelik was to pay 60 million yuan ($8 million) for Changzhou Casa Shinco Electrical Appliances Co. Ltd, which owns a factory with annual capacity of 200,000 washing machines 150 km (93 miles) from Shanghai.
The companies signed the deal on July 28 and the sale was expected to be completed within two months depending on approval from Chinese authorities, it said in a statement to the Istanbul Stock Exchange.
Arcelik (Beko) has been present in the Chinese market for more than a year by exporting products from Turkey.
“With this investment there will be an increase in our pace of growth in the Chinese market, which has an important place in our growth strategy,” the statement said.
The company said it will continue to sell its products, especially dishwashers, in China via exports from Turkey.
It said the investment was also part of its plans to expand into North America and the Asia-Pacific region.
Arcelik is one of the biggest white goods maker in Europe and also makes various consumer electronics. Its net profit jumped 25 percent to 324 million lira ($250 million) in 2006.
