Sao Paulo, Brazil, 19 May – Brazilian company Embraco opened, in Beijing, its second unit in China for manufacturing compressors for cheaper refrigerators and air conditioning systems, the Brazilian company said Thursday.
The new unit is the result of an investment of uS$65 million, through a joint venture with Chinese state company Beijing Snowflake Electric.
The new factory has the capacity to produce 4.5 million units per to meet demand from the Asian, Australian and European markets, said Embraco’s president, Ernesto Heinzelmann.
Embraco, which is majority-owned by US company Whirlpool, has had a factory together with Beijing Snowflake Electric since 1995, which at the time was the first joint venture set up by a Brazilian company in China.
With a total production capacity of 2.2 million units per year, the Beijing Embraco Snowflake Compressor Company posted profit of US$400,000 last year, after posting losses of US$5 million in 2004.
Beijing Embraco Snowflake Compressor Company, which is 65 percent owned by Embraco, posted sales of US$64 million in 2005, an increase of 12 percent against 2004.
Embraco produces around 23 million refrigeration compressors per year, most of which at its unit in Joinville, in the Brazilian state of Santa Catarina, which represents around a quarter of the sector’s world production.
Last year, the group’s total profit was US$25.4 million, an increase of 98 percent year on year.
The projection for 2006 is of higher results than those posted last year, especially because of increased consumption in the US, China and Europe. (macauhub)