Zhongshan, Guangdong – Guangdong Homa Appliances, China’s biggest fridge exporter by volume since 2009, announced in November 2013 it had secured financing for a new 2m unit/year plant.
Funding for the new plant is coming from a number of sources including private equity and institutional investors, the company said.
Homa said it plans to invest RMB580mn ($95mn) in the new facility in Zhongshan, Guangdong province. Homa plans to produce large capacity, energy saving high-end refrigerators at the site. Construction of the project is estimated to take 18 months.
The firm which, is an original designer and manufacturer of fridges, exports over 3mn units each year across the world. Homa has four manufacturing bases, of which only one is currently capable of high-end refrigerator production.
In 2012 the company’s net profit climbed 12% to RMB164mn on an 8% rise in revenue to RMB3.5bn, with a production volume of 4.6mn units. BASF and Wanhua are both listed as its top suppliers.
According to the company’s announcement, China’s fridge market will see a peak in sales of in the next ten years. This will happen as old fridges, bought 10-12 years ago start to wear out.