Philips (China) Investment Company Ltd. and Chengdu Hi-tech Industrial Development Zone have signed a strategic memorandum of understanding to open Philips' second regional headquarters in China, targeting the middle and western markets.

Under the framework of the memorandum of understanding, Philips will establish a new regional headquarters in Chengdu Hi-tech Industrial Development Zone. The functions and businesses of this new headquarters will cover the headquarters for the Chinese western areas, the sales headquarters for the western areas, the technical support center for Internet sales, the Chinese training center for Philips' health business group, and the research and testing center for the lighting business group.

The management committee of Chengdu Hi-tech Industrial Development Zone reportedly promised to actively support the project of Philips to help the company smoothly complete the establishment of the headquarters.

Kong Xianghui, chairman for Philips Greater China, told local media that with the establishment of the regional headquarters, Philips China will further promote its development in the middle and western areas of China. In the future, Philips will make good use of the geographical conditions, resource advantages, and investment environment in Chengdu to enhance its talent deployment and market channel construction in inland cities and better serve the middle and western markets.

At the beginning of 2011, Philips Worldwide announced a new strategic plan, aiming to create another "local market" in China.