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Hisense Purchased Daewoo's South Africa Factory
China's Hisense Group recently acquired Korean Daewoo's South Africa factory with a cost of US$ 4 million. This move has turned over a new leaf for Chinese enterprise to purchase an overseas company.
Hisense TV began to enter the South Africa market in 1993. And soon afterward, it became a famous brand as popular as Sony and Panasonic in local market. It boasted of its 100,000 TV sets in production and sales by 2000, representing 10 percent of market share. In view of this, it is an opportune time for Hisense to expand its production scale, upgrade its product and create brand name.
The Korean Daewoo's factory located in Midrand hi-tech park in the vicinity of Johannesburg was suffering a great loss and had no intension to stick out there. Therefore, with US $ 4 million, Hisense purchased Daewoo's South Africa's factory and all its equipment for the second phase expansion of its South Africa company.
So far, the second phase project of Hisense South Africa Company has been put underway. The company purchased a state-of-art color TV production line from China and shipped it to South Africa, and some veteran and hi-tech professionals and technicians will also be sent there.
When the expansion completed, the company will have an annual capability of turning out 200,000 color TV sets, 50,000 VCD and DVD, 10,000 Hi-Fi family video sets, thus becoming the largest color TV maker in South Africa.
By PD Online staff member Li Yan
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