SHANGHAI Shangling Electric Appliances has mapped out an aggressive capital expenditure plan into next year, requiring an investment of 483 million yuan (about HK$430 million).
Vice-chairman Jiang Shilong said yesterday that as well as expanding existing refrigerator production lines, it would increase the proportion of air-conditioners and microwave ovens.
He said the demand growth rate for air-conditioners in China was much higher than for refrigerators.
Competition in that sector was fierce, with already more than 100 manufacturers of air-conditioners on the mainland, he said.
But Mr Jiang said: ''We're convinced that we'll do well in the sector.'' Some 180 million yuan would be earmarked for a new refrigerator facility which could produce up to 300,000 250 to 270-litre units.
Mr Jiang said the facility, to be completed by next year, would be compatible with Mitsubishi refrigerators.
An additional 90 million yuan would be set aside for larger-size refrigerators, which would be produced by the 50-50 joint venture with Tian An of Hong Kong.