Chinese home appliances and electronics group TCL has signed a strategic framework agreement with the local government of Dongxihu district in Wuhan to establish a new strategic base.
TCL said in its report that according to the agreement signed by the two parties, TCL will take Dongxihu district as its headquarters base in middle China to gradually set up its sales and logistics center, brand promotion base, and then an industry cluster with focus on the home appliances and electronics industry.
The agreement reportedly said that TCL Group will invest CNY300 million to CNY500 million between 2011 and 2012 to enlarge the air-conditioner capacity of its Wuhan base to reach an annual production capacity of 3.5 million air-conditioners. The group will establish a refrigerator and washing machine project that integrates development, manufacturing and sales to realize an annual capacity of three million refrigerators and three million washing machines by 2015.
The group will also organize and construct a home appliances industrial park with a planned area of between 600 and 800 mu to attract mainstream home appliances parts providers.
As part of the plans, TCL Group will build a 1,160-mu project in Wuhan's Jinyinhu district, aiming to attract TCL's research and development department as well as 300 enterprises within the home appliances industry supply chain.