Fujitsu General Ltd. said Tuesday it has sealed a deal with Orient International (Holding) Co. of China to jointly set up a new company there to sell home air conditioners.
The joint company, Fujitsu General Orient Electric (Shanghai) Co., will be set up in Shanghai in April, the leading air conditioner maker said.
Fujitsu General Orient Electric, capitalized at $2.5 million, set an annual sales target of 150,000 units for fiscal 2008.
The new firm will be owned 85 percent by Fujitsu General and 15 percent by the Chinese state-run trading house, the company said.
With the agreement, Fujitsu General said it has secured a framework in China to produce and sell all kinds of air conditioners for both home and office use.