Guangdong Midea Electric Appliances Co Ltd will invest in a 200-million-yuan (US$29.41 million) joint venture with Carrier Corp of the United States to produce air conditioners in Foshan in Guangdong Province.

Midea, the country's second-largest listed household goods maker, will hold a 60-percent stake in the venture and Carrier Corp, a unit of United Technologies Corp, will take the balance, the Chinese company said in a statement to the Shenzhen Stock Exchange yesterday.

The venture, which is set to start operations at the end of this year, will rent Midea's plants to research, develop, assemble and manufacture residential and light commercial air conditioning products. The project is still awaiting regulatory approval.

"The new venture will make use of our advantages in supply chain, management and production system and Carrier's competitive edge in branding," the statement said. The cooperation will also help enhance Midea's experience in brand building, technology and management, it said.

"Our new JV aims to be a stable, long-term platform of capital, product, technical and brand cooperation and alliance between Midea and Carrier," said a Midea spokesman.

Midea has tied up with Toshiba Carrier Corp to also make air conditioners.

(Shanghai Daily July 3, 2008)