Japan's Sanyo Electric Co. Ltd. said it will link up with China's Haier Group in the refrigerator business in a bid to turn around its loss-making operations and will sell its Thai refrigerator plant to Haier.

The two companies will set up a joint venture in Japan in December to take over Sanyo's refrigerator design and development operations.

Sanyo will also sell an 80 percent stake in its flagship refrigerator plant in Thailand, which makes about 1 million units a year, and will procure the products from Haier on an original equipment manufacturing (OEM) basis.

"In the next business year, we will not post a loss from the refrigerator business any more," senior vice president Mitsuru Honma said.

In OEM agreements, suppliers manufacture products under the names of re-sellers. Sanyo will keep a 10 percent stake in the plant with the rest held by others. The sale price has not been set, the Japanese company said.

Sanyo's white goods division posted an operating loss of about 20 billion yen ($169 million) in the year that ended on March 31, with its refrigerator business expected to have had the biggest loss.

Haier, which has a Hong Kong-listed arm, Haier Electronics, will hold a 60 percent stake in the joint venture, and Sanyo will own 40 percent.

Source:佚名