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The ElcoBrandt Group has reinforced its international development by investing on the chinese market

ElcoBrandt SA has just announced the signing of a draft agreement with the Chinese Hefei Rongshida Co., Ltd, and Maytag Corporation, for the acquisition of their joint venture specialised in the production of Royalstar household appliances. After the takeover of the Ocean factory in Verolanuova, Italy (March 2003) and the opening of a sales subsidiary in Moscow in early 2003, this decision demonstrates the ElcoBrandt Group's determination to reinforce its international development.

The draft agreement covers the takeover by ElcoBrandt of 75.5% of the joint venture, based in Hefei (1000 Km west of Shanghai in Anhui province). This 75.5% stake covers the total purchase of Maytag shares (50.5% of the capital) and the acquisition of 25% of the capital from the Hefei Rongshida group.

The definitive signature of this takeover is currently being finalised. It should be very rapidly effective, declared the group.

The Rongshida/Royalstar brand is one of the leading household appliances brand on the Chinese market. It occupies the third and eighth position on the washing and refrigeration markets respectively. This brand is known for its high quality and enjoys an excellent image in China. All Rongshida/Royalstar products are made in the company's 7 plants, all located in the People's Republic of China.

" Through this investment, ElcoBrandt takes a solid position on the world's most promising market", explains Bruno Vendroux, Chairman of the ElcoBrandt board. "We have invested in the means to rapidly become a major player on the Chinese market. This acquisition once more strengthens our international development policy in Asia ".


The leader in France and 5th ranking household appliances manufacturing group in Europe, ElcoBrandt was established on 15th January 2002 after the takeover of the main industrial and commercial activities of Brandt S.A. by the Elco Holdings Ltd. Group in partnership with the Spanish-based Fagor Electrodom©sticos company. The ElcoBrandt group now employs 5,000 people and sells more than 3.5 million appliances designed and produced each year in its 8 industrial sites (7 in France and 1 in Italy).

ElcoBrandt has a portfolio of prestigious brands including: Brandt, De Dietrich, Ocean, Samet, SanGiorgio, Sauter, Thomson and Vedette. It made € 847.1 million in 2002, of which 40 % on the international market. Backed up by 8 sales subsidiaries (France, UK, Denmark, Italy, Switzerland, Poland, Asia, Samet International), the Group distributes its products in 100 countries worldwide.

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