(Yicai Global) July 25 -- TCL Multimedia Technology Holdings Ltd., a leading Chinese consumer electronics manufacturer, has struck a deal with top Brazilian home appliance brand SEMP to set up a joint venture, paving the way for the home appliance giant to enter the Latin American market.
The joint venture, called SEMP TCL, is to specialize in the production and sales of TCL and SEMP's TV products and small household electrical appliances. The products are positioned primarily for the mid- to high-end market, TCL Multimedia CEO Bo Lianming told Yicai Global.
With a total investment of BRL200 million (USD61.42 million), TCL will own 40 percent of the joint venture and SEMP the remaining 60 percent. The new company is to increase its share of the Brazilian color TV market to 10 percent within three years to rank among the three largest color TV producers in the country. Sales of TCL products in the region are expected to exceed 800,000 units, making up eight percent of total market volume.
TCL has been steadily pushing forward its global business operations. It already operates a plant in Vietnam covering the Southeast Asian market, a plant in Poland covering the European market, a plant in Mexico covering Central and North American countries, and a joint venture in Egypt covering the Middle East and African countries.
Where will TCL go after Brazil? "I can't talk about our plans for the second half of the year. Both India and Brazil are important markets for us, and talks with Indian partners are currently underway. Essentially, our approach is to operate joint ventures with our partners in the new markets, and planning is now in progress," said Mr. Bo.