HUALING Holdings is set to further penetrate China's home-appliance market with its small refrigerator plant in Hefei, Anhui province, which began production yesterday. The group began producing air-conditioners in Panyu, Guangdong province, on April 18. On the same day, Hualing subsidiary China Refrigeration Industry Co signed a second-phase technology co-operation agreement with Japan's Mitsubishi Electric Corp. Hualing was listed on the Hong Kong stock exchange last December. Chairman and managing director Bi Qing said: ''The outlook for Hualing Hefei is very promising. Ever since domestic and overseas buyers learned about the production commencement, they have been approaching us for orders.'' Hualing Hefei was formed last June between Hualing's wholly owned subsidiary Hualing Technology, which holds a 55 per cent stake, and Anhui Huangshan Electrical Appliances Main Factory, holding 45 per cent. The joint venture has a term of 11 years. Its registered capital is $35 million and total investment is expected to reach $50 million. Occupying 10,000 square metres, Hualing Hefei's plant mainly produces small refrigerators, but will also manufacture other electrical appliances. The products will be sold in China and overseas. ''Hualing Hefei will draw on Hualing's existing nationwide retail and repair networks in China to gradually expand its sales points, and will also develop overseas markets,'' Mr Bi said.