China Resources Sanyo Compressor, a joint venture owned primarily by China Resources Logic, has agreed to spend $320 million buying three production lines in Japan from its two other shareholders.
The move is expected to double the venture's annual production capacity to six million air-conditioner compressors.
The additional production lines were originally owned by Toyota Tsusho and Sanyo Electric, which yesterday announced it had increased its stake in China Resources Sanyo Compressor and a second joint venture, Shenyang Shengrun Sanyo Compressor, from 13 per cent to 34.25 per cent.
CR Logic holds 63.75 per cent of both ventures.
The mainland manufacturer has also entered into a technology licence agreement and a trademark licence deal with Sanyo to use its trademark up to October 2007.
CR Logic deputy chairman and chief executive Zhu Jinkun said the company forecast robust growth in the demand for air-conditioner compressors at home and abroad this year.