JS Group and Haier Group Agree in Building Material JV in China

JS Group Corporation of Japan and Haier Group of China announced on Wednesday the companies signed a letter of basic understanding to start joint venture business. They aim to promote sales of architectural material and housing equipment in Chinese building market through collaboration of JS Group’s high quality and technology with Haier’s sales network and brand value. Mr. Yoichiro Ushioda, chairman and CEO of JS Group, explained at a press conference they establish joint companies for design and production in Qingdao, China within 2010.

Mr. Ushioda said JS Group targets 50% share in architectural material market of Shandong Province, where Haier Group is headed, within next several years. Mr. Zhang Ruimin, chairman and CEO of Haier Group, explained in Chinese residential market exterior and interior works recently tend to be packaged and then Haier Group can realize one stop solution for this new demand thanks to the joint business with JS Group. Mr. Zhang said the joint companies can utilize Haier’s sales net work which covers approximately 2,100 hsiens in China.

JS Group estimates overseas net sales at 45 billion yen for fiscal 2010 ending in March 2011, 11.3 billion yen of which should be generated in Chinese market. In fiscal 2013, the firm aims to raise the total overseas sales to 200 billion yen and Chinese sales to above 50 billion yen.