(Yicai Global) Feb. 22 -- Cooperation between Chinese electronics giant TCL Technology and Brazil's Semp is predicted to widen after the founder of the South American firm visited Shenzhen.

Affonso Brandao Hennel, the 94-year-old former chairman of Semp, said to Yicai Global yesterday that he is hoping for closer collaboration with TCL as the two firms' partnership has been clear and transparent for the past eight years. Besides home appliances, the pair considers expanding its photovoltaic business.

Last year, TCL Industrial Holdings' sales in Brazil reached CNY4 billion (USD580 million) and the goal is to reach CNY10 billion shortly, Li Dongsheng, founder and chairman of TCL, said at a meeting with Brandao Hennel.

TCL and Semp formed Semp TCL in 2016. The JV has two manufacturing bases in Brazil. One of them churned out over two million television sets last year with a nearly 19 percent market share. The second facility, which became operational last year, shipped nearly 300,000 air conditioning units with a market share of 7 percent.

White Goods, Big TVs, and Solar Energy

Next, the Chinese firm aims to make its TV brand the second-largest in Brazil, according to Yue Haiping, general manager of marketing at TCL's local branch. Besides TV sets and cellphones, the JV could produce refrigerators and washing machines. Moreover, they are talking about solar energy equipment.

Despite the gap in consumption power between Brazil and Western markets, TCL has been able to save costs and introduce new products in Brazil due to the improving production efficiency and decreasing shipping costs in recent years, said Li Yongping, general manager of TCL's Latin American sales center.

"In the Brazilian market, we are focusing on opportunities in super-large-screen TVs, including 75, 85 and 98-inch products. We have also imported fresh air conditioners and commercial air conditioners to raise product premiums," the GM added.

The JV should diversify its product lines, according to Felipe Hennel Fay, vice president of Semp TCL. Brazil is one of the world's largest developing countries where consumers tend to pay in instalments and like products to be high-tech and cost-effective, resulting in a growing demand for large-size TVs, he added.

Globalization will be the most important driver for TCL in the future, per Chairman Li. "We want to move from exporting products to exporting industrial capabilities, and establish product bases in major markets, driving the export of China's core components, materials and equipment, enhancing global competitiveness."

TCL's overseas layout of display and PV products will be promoted in the next few years, the chief said, adding that currently, it mainly revolves around consumer devices, as the firm makes display modules in India, as well as PV cells and panels in Malaysia, the Philippines, and Mexico.

Editor: Emmi Laine, Xiao Yi