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PRESS RELEASE
December 8, 2005
Fujitsu General Limited
(NO.05-V02-20)
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New company for multi air-conditioning system
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On November 29, our company signed a joint venture agreement in Wuxi City, China with Wuxi Little Swan Central Air Conditioner Co., Ltd. (Head office: 67-C Huiqian Road, Wuxi, China, Chairman: Sun Jian Xin, hereinafter "Little Swan") affiliated with a Chinese leading electric household appliance group Jiangsu Little Swan Group Co., Ltd. (hereinafter "Little Swan Group") to establish a new company for the business of multi air conditioning system for buildings in China. The new company will be officially established in January, 2006, starting the business at the same time.
The new company is named Fujitsu General Central Air-conditioner (Wuxi) Co., Ltd. with capital of US$8.6 million (about 1 billion yen), 75% invested by Fujitsu General and 25% by Little Swan, and having its head office in Wuxi City, Jiangsu Province, China, will manufacture, sell and conduct after-sale service of multi air conditioning system for buildings such as small-size VRF system "J series" for the Chinese market.
Our company has been establishing a friendly and cooperative relationship with Little Swan Group in wide range of business including production of home use air conditioners on sub-contract basis and establishment of a joint venture of motor business. The establishment of the joint venture this time is aimed to further expand the collaboration based on such trustful relationship.
The new company will make the most use of the existing factory of Little Swan and its sales and service network set up throughout China as well as obtaining the state-of-the-art technologies such as alternative refrigerant and inverter from Fujitsu General. Thus, efficient and speedy build-up and expansion of business is expected to be realized by making full use of the strength of both companies.
Photo: Signing ceremony (Wuxi City, November 29, 2005)
Left: President Mitsuhiro Oishi, Fujitsu General Limited
Right: Chairman Zhu Dekun, Little Swan Group
Photo: Small-size VRF system "AIRSTAGE J series"
Outline of new company
- (1) Company name :
- Fujitsu General Central Air-conditioner (Wuxi) Co., Ltd.
- (2) Registered address :
- 1 Hanjiang Road, New Zone, Wuxi, P.R. China
- (3) Representative :
- Kazuyoshi Arai (Currently Vice General Manager, Corporate Planning Division, Fujitsu General Limited)
- (4) Line of business :
- Production, import and sales/service of multi air-conditioning system for buildings and its parts, accessories and related products in China
- (5) Establishment :
- January, 2006 (scheduled)
- (6) Capital :
- US$8.6 million (approx. one billion yen)
- (7) Number of employees :
- About 250
- (8) Settlement term :
- December 31
- (9) Investment ratio :
- Fujitsu General Limited 75%, Wuxi Little Swan Central Air Conditioner Co., Ltd. 25%
- (10) Scale of factory :
- 8,172m²
- (11) Sales plan :
- 15,000 systems (5 years later)
Background of new company establishment
Recently in China, the demand for multi air conditioning system for buildings and detached houses has rapidly increased along with the construction rush such as high-rise buildings. Although the growth rate tends to slow down due to the government recent preventive measures against overheated business activity, the demand is expected to continue to grow to become the world No.1 toward the Beijing Olympic Games in 2008 and Shanghai Expo in 2010.
Also, the Chinese government is pushing forward the industrial policy with key words of "Environment" and "Energy-saving" as the growth business model on the premise of "mass production, mass consumption, mass disposal" has been causing energy shortage and environmental pollution. Above all, as the power consumption of air conditioners accounts for 30 to 40% of electricity load at the peak time of major cities, the demand for multi air conditioning system for buildings of inverter type adopting R410A refrigerant with high "energy saving" effect is expected to largely grow in the future.
Our company has already started to ship the small-size VRF system "J series" to the Chinese market being sold by Little Swan. The "J series" is highly evaluated in the world and the latest models will be produced and sold in China.
We will further expand the sales by integrating our latest technology with Little Swan's sales and production power and creating the most suitable products with competitive price in the Chinese market.
(Reference) Relations with Little Swan Group and outline
| Company name |  Little Swan Group |
 Wuxi Little Swan Industry Developing Co., Ltd. |
 Wuxi Little Swan Central Air Conditioner Co., Ltd. |
 Fujitsu General Central Air-conditioner (Wuxi) Co., Ltd. |
|---|---|---|---|---|
| Establishment | Dec. 1976 | Aug. 2004 | Jan. 2001 | Jan. 2006 (scheduled) |
| Representative | Chairman Zhu | Chairman Sun | Chairman Sun | Chairman Arai |
| Location | 67-C Huiqian Road, Wuxi, Juangsu | 18 Changjiang South Road, New Zone, Wuxi, Jiangsu | 3 Shengan West Road, Wuxi, Jiangsu | 3 Shengan West Road, Wuxi, Jiangsu |
| Line of business | Production and sales of electric home appliances | Sales of electric home appliances, electronic products, communication equipment | Production and sales of air conditioners | Production and sales of air conditioners |
| Capital | 197.1 million yuan | 500 million yuan | 30 million yuan | US$8.6 million |
| Employees | 7,000 | 3,000 | 200 | 250 |
Contact details
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