On April 11, 2018, Hefei Midea’s Hicks Electronics Co., Ltd., a joint venture between Midea Corporation and Midea Hicks, was officially opened. Tian Mingli, General Manager of the Central Air Conditioning Division of Midea Group, and Shiro Murai, Chairman of Hicks Incorporated, etc. Relevant leaders attended the opening ceremony.
It is understood that Hefei Midea Hicks Electronics Co., Ltd. was registered in October 2017 in industry and commerce. The joint venture company is controlled by Midea. The total project planning is 18,000 square meters. It specializes in the production of electronic circuit boards, remote controllers, and air-conditioning control boxes. High-precision 'products, after full production is expected to reach an annual output value of 2.5 billion yuan.
This is after Hi-Tech Electronics Co., Ltd. of Guangdong Midea, Midea and Hicks again reached a strategic cooperation to jointly establish a joint venture company. It is reported that after the opening of Hefei Midea Hicks Electronics Co., Ltd., Hicks Electronics Co., Ltd. of Guangdong and Guangdong will be Co., Ltd. will also become the main carrier of Midea Group's electronic industry management platform. It will undertake incremental demand for electronic industry and high-end frequency conversion business, and comprehensively enhance the Group's electronic industry R&D and manufacturing level.
Insiders pointed out that Midea is the leading brand of central air-conditioning in China. Hicks is a world-renowned electronic control supplier. The establishment of Hefei Midea Hicks Electronics Co., Ltd. means that the two sides have strategic cooperation in technology R&D and manufacturing, supply resource sharing, etc. Into the Sham Shui Po District, this will not only help improve the quality and technology of Midea’s central air-conditioning products, but also implement fine-quality strategies. It is also another milestone in Midea’s internationalization strategy.
As a world-renowned electronic control supplier, the cooperation between Hicks and Midea Air has been a long time ago. As early as 2010, Midea Air-Conditioner and Hicks started cooperation on EMS business and processing business; in 2015, both sides Established a joint venture company, and conducted in-depth cooperation in areas such as electric control, high-efficiency manufacturing, and electronic control and intelligentization. The businesses involved include home appliance control, smart sensing, energy management, smart security, and healthy electronic systems. The data shows that Hicks of Guangdong America Electronics Co., Ltd. has been put into production since 2016, the product quality has been greatly improved, and the operating conditions have also maintained an increasing state of revenue. In recent years, with the rapid expansion of central air-conditioning capacity and the United States, Hicks cooperation continues deepening, the new joint venture The establishment of the company has become an inevitable result of natural conditions.
Midea Tian, general manager of Midea Air Conditioning Division, Midea Group
For this strategic cooperation, Tian Mingli, general manager of the Central Air Conditioning Division of Midea Group, said that Midea Air has invested a lot of resources in technology research and development and production. Hicks is a world-class brand in the global EMS industry and has top-level in the industry. Electrical control capabilities, and in-depth cooperation with Hicks, will help improve the overall manufacturing level of central air conditioning in the United States. At the same time, electronic electronic control is an important part of central air-conditioning products, and innovation breakthroughs in this field will further promote quality products. Strategy and beauty of the central air-conditioning product quality and technology upgrades.
Shikisuke Murais, Chairman of Hicks Incorporated
Keiji Murai, chairman of Hicks Co., Ltd., also stated that Midea is the leading manufacturer of central air conditioners in the country, and Hicks and Midea have a long history of cooperation. The two parties established the Hefei JV again, which is bound to further integrate superior resources. Form a win-win situation.
In recent years, through mergers and acquisitions, integration, etc., Midea Group has gradually completed the transition from home appliance giants to technology groups. At the same time, Midea’s central air-conditioning has also continuously increased its investment in product research and development. According to data, Midea’s central air-conditioning in 2017 The R&D investment will reach 5% of annual sales, which is much higher than the average level of the home appliance industry by 3%. At present, Midea has mastered over 1,700 patented technologies and completed industrial applications.
Insiders pointed out that in recent years, Midea’s central air conditioners have always been in the leading position in the domestic market both in terms of product technology and market share. In-depth cooperation with Hicks will inevitably continue to expand its leading edge in the field of core components, consolidating The status of the domestic market, but also laid a more solid foundation for Midea's central air-conditioning internationalization strategy.