Jingzhou and Handan Bases: the Latest in Midea Expansion

On January 10, 2011 Midea Refrigeration and Air Conditioning Sector (MARS) marked two major events reflecting the company s domestic efforts to increase production capacity and product range. Midea and local authorities held the signing ceremony for the latest in expansion projects, Jingzhou industrial base. At the same time, the company put into production Handan Industrial Park, the largest single plant to produce a range of energy-efficient products.
At the ceremony, MARS CEO Paul Fang said, the refrigeration and washing machine industries are important support for Midea s future growth. Midea is targeting developing the Jingzhou facility into a base with a 10 billion RMB turnover. Jingzhou currently has a 5 million-unit production capacity, and upon completion will reach an annual capacity of 6 million units with expected revenue of 4 billion RMB.
The same day, Midea s other major investment Handan Industrial Park, began production on a range of energy-efficient products and inverter air conditioners. North China's largest white goods production base covers a land area of 500 000 square meters and is planning for an annual capacity of 3.5 million units in grade A energy-efficient fixed-speed and inverter ACs. With the Handan operations plan, Midea s overall residential AC production capacity is expected to reach a capacity of 33 million by 2011. The company s goal is to become one of the largest AC manufacturers in the world.
Jingzhou and Handan bases are part of Midea s aim to form a strategic, domestic manufacturing layout including Guangdong, Anhui, Hubei and Hebei provinces. This is in addition to covering production in global markets such as Belarus, Vietnam and Egypt.
At the end of 2010, Midea achieved 53 million units in major appliance production, 160 million units in small domestic appliances, an export revenue of 5 billion USD and a total revenue over 110 billion RMB. The Jingzhou and Handan factories are part of Midea s aim to achieve regional coverage all over China, increase distribution efficiency, and reach a 200 billion RMB revenue by 2015.