Galanz pins sales growth hopes on Zhongshan plant

Galanz Enterprise Group, the world's biggest maker of microwave ovens, aims to lift sales of air-conditioners by more than 60 per cent to five billion yuan next year after the opening of a two-million square metre factory in Zhongshan in November.

The first phase will cost 500 million to 600 million yuan and will double Galanz's air-conditioner production capacity to six million units a year.

Deputy manager David Shen Chaohui said the expansion would catapult the firm into the top five of mainland air-conditioner makers.

A similarly budgeted second phase will increase annual capacity to 10 million units in two years. A combined two billion yuan will be spent on the factory over the next three to five years.

Mr Shen said he expected Galanz's revenue - 10.5 billion yuan last year - would grow 30 per cent this year and the same next year. Air-conditioners would continue to account for about 30 per cent of revenue because the company also planned to increase production of kitchen and home appliances.

'We are the No1 microwave oven producer in the world, with over 30 per cent market share, but room for growth in profits and revenues in this area is diminishing,' Mr Shen said. 'Our growth in air-conditioners has been rapid, so we regard this business as having good potential.'